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Sample Letter Denying Application for Loan or Credit

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					                                                          Defense Financial Management Improvement Guidance

           Rule Name                      Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Accounts_Payable_Reporting_1    The system must generate aged            DoDFMRVol1,Ch2,Add2D      DFMIR         Mandatory        FV        Perform Financial Reporting
                                requisitions reports.
Accounts_Payable_Reporting_10   The system must produce audit trail      DoDFMRVol1,Ch2,Add2D      DFMIR         Mandatory        FV        Manage General Ledger
                                reports to support data transferred
                                from external systems to the financial
                                system, including an error listing.

Accounts_Payable_Reporting_11   The system must retain for audit trail   DoDFMRVol1,Ch2,Add2D      DFMIR         Mandatory        FV        Manage General Ledger
                                purposes the original machine
                                readable records along with all
                                amendments.
Accounts_Payable_Reporting_12   The system must record and maintain DoDFMRVol1,Ch2,Add2D           DFMIR         Mandatory        CSE       Monitor Contract or Order
                                contracts and grants so that fiscal year-                                                                   Performance
                                to-date and inception-to-date
                                information can be presented.

Accounts_Payable_Reporting_13   To support the closeout process, the JFMIPSR-02-02,Pg48            FFMIA         Mandatory        CSE       Monitor Contract or Order
                                agency's single integrated financial                                                                        Performance
                                management system must provide a
                                receiving report containing a final
                                indicator, with acceptance
                                acknowledged by a designated agency
                                official including:
                                • contract number and all associated
                                delivery order numbers or task order
                                numbers (including modification
                                number, if any); PO number (including
                                modification number, if any); BPA
                                number and all associated BPA call
                                numbers (including modification
                                number, if any);
                                • date of receipt;

                                • date of acceptance; and

                                • final acceptance indicator.




Accounts_Payable_Reporting_14   To support the closeout process, the     JFMIPSR-02-02,Pg49        FFMIA         Mandatory        CSE       Monitor Contract or Order
                                agency's single integrated financial                                                                        Performance
                                management system must access or                                                                            Monitor Payment
                                provide evidence that the contractor's
                                final invoice has been submitted.




    July 29, 2009                                                        Business Transformation Agency                                                     Page 1 of 742
                                                           Defense Financial Management Improvement Guidance

           Rule Name                       Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Accounts_Payable_Reporting_15   To support the closeout process, the JFMIPSR-02-02,Pg49              FFMIA         Mandatory        CSE       Monitor Contract or Order
                                agency's single integrated financial                                                                          Performance
                                management system must provide                                                                                Monitor Payment
                                evidence that a final invoice payment
                                has taken place with the following:
                                • final payment indicator (including any
                                resolution of contract withholds);
                                • invoice number; and

                                • total amount paid.



Accounts_Payable_Reporting_16   To support the closeout process, the       JFMIPSR-02-02,Pg49        FFMIA         Mandatory        CSE       Manage Execution Fund Account
                                agency's single integrated financial                                                                FV        Monitor Contract or Order
                                management system must provide                                                                                Performance
                                where excess funds have been
                                identified, provide the document
                                number under which the funds were
                                obligated, the amount of the de-
                                obligation, and the date of the de-
                                obligation.

Accounts_Payable_Reporting_17   To support the closeout process, the       JFMIPSR-02-02,Pg49        FFMIA         Value Added      CSE       Execute Contract Closeout
                                agency's single integrated financial
                                management system should provide
                                an accounting document number.

Accounts_Payable_Reporting_18   To support the closeout process, the       JFMIPSR-02-02,Pg49        FFMIA         Value Added      CSE       Manage Execution Fund Account
                                agency's single integrated financial                                                                FV        Manage Sales and Procurement
                                management system should enable
                                electronic contracting, obligation of
                                funds, approvals and signatures, and
                                notification alerts for pending actions.



Accounts_Payable_Reporting_19   Agency systems must maintain, store, JFMIPSR-02-02,Pg63              FFMIA         Mandatory        FV        Manage General Ledger
                                and permit ready retrieval of financial
                                information.
Accounts_Payable_Reporting_2    The system must generate a report of DoDFMRVol1,Ch2,Add2D            DFMIR         Mandatory        FV        Perform Financial Reporting
                                aged outstanding obligating
                                documents by entry date and expected
                                receipt date.
Accounts_Payable_Reporting_3    The system must generate a report of DoDFMRVol1,Ch2,Add2D            DFMIR         Mandatory        FV        Perform Financial Reporting
                                aged receiving reports without
                                acceptance.

    July 29, 2009                                                          Business Transformation Agency                                                     Page 2 of 742
                                                                Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Accounts_Payable_Reporting_4           The system must generate aged,          DoDFMRVol1,Ch2,Add2D     DFMIR         Mandatory        FV        Perform Financial Reporting
                                       unmatched vendor invoice report.
Accounts_Payable_Reporting_5           The system must report, in              DoDFMRVol1,Ch2,Add2D     DFMIR         Mandatory        CSE       Manage Supply Chain Entitlement
                                       accordance with OMB Circular A-125,
                                       "Prompt Payments," the:
                                        (1) Number of interest penalties
                                       paid.
                                        (2) Amount of interest penalties
                                       paid.
                                        (3) Relative frequency, on a
                                       percentage basis, of interest penalty
                                       payment to the total number of
                                       payments.
                                        (4) Number, total amount, and relative
                                       frequency, on a percentage basis, of
                                       payments made 5 days or more before
                                       the due date, except where cash
                                       discounts were taken.



Accounts_Payable_Reporting_6           The system must generate status and DoDFMRVol1,Ch2,Add2D         DFMIR         Mandatory        CSE       Monitor Contract or Order
                                       procurement history for documents                                                                         Performance
                                       such as multi-task contracts, grants,
                                       and blanket purchase agreements.

Accounts_Payable_Reporting_7           The system must produce detailed          DoDFMRVol1,Ch2,Add2D   DFMIR         Mandatory        FV        Manage Execution Fund Account
                                       listing by level of funds control for the
                                       commitment documents, obligation
                                       documents, and expenditure of funds.

Accounts_Payable_Reporting_8           The system must generate a cash        DoDFMRVol1,Ch2,Add2D      DFMIR         Mandatory        FV        Schedule Payment
                                       requirement projection report
                                       indicating the dollar amount of
                                       disbursements due to be made on a
                                       particular day.
Accounts_Payable_Reporting_9           The system must generate a vendor      DoDFMRVol1,Ch2,Add2D      DFMIR         Mandatory        CSE       Manage Supply Chain Entitlement
                                       listing by vendor name and number.

Acquired_Loan_Account_Status_Maint A guaranteed loan system must             JFMIPSR-00-01,pg45         FFMIA         Mandatory        FV        Record Loans and Grants
enance_1                           identify accounts that should be written-
                                   off.
Acquired_Loan_Account_Status_Maint A guaranteed loan system must              JFMIPSR-00-01,pg47        FFMIA         Mandatory        FV        Record Loans and Grants
enance_10                          include a partial, full, or late payment
                                   indicator.

    July 29, 2009                                                             Business Transformation Agency                                                     Page 3 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Acquired_Loan_Account_Status_Maint A guaranteed loan system must            JFMIPSR-00-01,pg47        FFMIA         Mandatory        FV        Record Loans and Grants
enance_11                          identify payments that cannot be
                                   applied and document the reasons
                                   why the payments cannot be applied.

Acquired_Loan_Account_Status_Maint A guaranteed loan system must            JFMIPSR-00-01,pg47        FFMIA         Mandatory        FV        Record Loans and Grants
enance_12                          provide an automated interface with
                                   the Core Financial System to record
                                   the collection. If the guaranteed loan
                                   system processes collections, it must
                                   meet the requirements in the Core
                                   Financial System Requirements
                                   related to collections and send
                                   summary data to the Core Financial
                                   System.


Acquired_Loan_Account_Status_Maint A guaranteed loan system must             JFMIPSR-00-01,pg45       FFMIA         Mandatory        FV        Record Loans and Grants
enance_2                           identify accounts for which collection is
                                   to be pursued.
Acquired_Loan_Account_Status_Maint A guaranteed loan system must            JFMIPSR-00-01,pg46        FFMIA         Mandatory        FV        Record Loans and Grants
enance_3                           calculate outstanding balances for
                                   each loan account invoiced, including
                                   principal, interest, late charges, and
                                   other amounts due.
Acquired_Loan_Account_Status_Maint A guaranteed loan system must            JFMIPSR-00-01,pg46        FFMIA         Mandatory        FV        Record Loans and Grants
enance_4                           identify loan accounts to be invoiced
                                   based on agency program invoicing
                                   criteria and loan account information.

Acquired_Loan_Account_Status_Maint A guaranteed loan system must            JFMIPSR-00-01,pg46        FFMIA         Mandatory        FV        Record Loans and Grants
enance_5                           generate and transmit an invoice to
                                   each borrower. At a minimum, the
                                   invoice must include borrower ID,
                                   amount due, date due, the date after
                                   which the payment will be considered
                                   late, and the current balance.


Acquired_Loan_Account_Status_Maint A guaranteed loan system must            JFMIPSR-00-01,pg46        FFMIA         Mandatory        FV        Record Loans and Grants
enance_6                           provide for automatic acceleration of
                                   delinquent installment payment notes
                                   based on an acceleration clause
                                   indicator.


    July 29, 2009                                                           Business Transformation Agency                                                    Page 4 of 742
                                                                Defense Financial Management Improvement Guidance

            Rule Name                           Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Acquired_Loan_Account_Status_Maint   A guaranteed loan system must track      JFMIPSR-00-01,pg46        FFMIA         Mandatory        FV        Record Loans and Grants
enance_7                             and age receivables by type.
Acquired_Loan_Account_Status_Maint   A guaranteed loan system must            JFMIPSR-00-01,pg46        FFMIA         Mandatory        FV        Record Loans and Grants
enance_8                             provide an automated interface with
                                     the Core Financial System to record
                                     accrual of interest, administrative
                                     charges, and penalties for delinquent
                                     loan accounts.


Acquired_Loan_Account_Status_Maint A guaranteed loan system must apply JFMIPSR-00-01,pg46               FFMIA         Mandatory        FV        Record Loans and Grants
enance_9                           collections according to agency
                                   program receipt application rules to
                                   the appropriate liquidating or financing
                                   account.
Acquired_Loan_Claim_Processing_1     A guaranteed loan system must record JFMIPSR-00-01,pg44            FFMIA         Mandatory        FV        Record Loans and Grants
                                     key claim data, maintain data on
                                     original and if applicable, final claims.

Acquired_Loan_Claim_Processing_10 A guaranteed loan system must have          JFMIPSR-00-01,pg45        FFMIA         Mandatory        FV        Record Loans and Grants
                                  the capability to develop edits to
                                  address claims issues.
Acquired_Loan_Claim_Processing_11 A guaranteed loan system must have JFMIPSR-00-01,pg45                 FFMIA         Mandatory        FV        Record Loans and Grants
                                  the capability to record or track claims
                                  errors.
Acquired_Loan_Claim_Processing_12 A guaranteed loan system must have          JFMIPSR-00-01,pg45        FFMIA         Mandatory        FV        Record Loans and Grants
                                  the capability to support underlying
                                  details.
Acquired_Loan_Claim_Processing_2     A guaranteed loan system must            JFMIPSR-00-01,pg44        FFMIA         Mandatory        FV        Record Loans and Grants
                                     compare the claim application
                                     information to the agency's program
                                     claim application evaluation criteria.

Acquired_Loan_Claim_Processing_3     A guaranteed loan system must          JFMIPSR-00-01,pg44          FFMIA         Mandatory        FV        Record Loans and Grants
                                     suspend processing for claims that are
                                     incomplete; and the claims should
                                     remain in suspension until they are
                                     corrected.
Acquired_Loan_Claim_Processing_4     A guaranteed loan system must            JFMIPSR-00-01,pg44        FFMIA         Mandatory        FV        Record Loans and Grants
                                     identify claims not meeting agency
                                     program requirements and notify the
                                     lender of the rejection.




    July 29, 2009                                                             Business Transformation Agency                                                    Page 5 of 742
                                                           Defense Financial Management Improvement Guidance

           Rule Name                         Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Acquired_Loan_Claim_Processing_5   A guaranteed loan system must          JFMIPSR-00-01,pg45        FFMIA         Mandatory        FV        Record Loans and Grants
                                   document and track information on
                                   accepted and rejected claims and the
                                   reason for the rejections.
Acquired_Loan_Claim_Processing_6   A guaranteed loan system must reflect JFMIPSR-00-01,pg45         FFMIA         Mandatory        FV        Record Loans and Grants
                                   the status of the claim.
Acquired_Loan_Claim_Processing_7   A guaranteed loan system must         JFMIPSR-00-01,pg45         FFMIA         Mandatory        FV        Record Loans and Grants
                                   calculate the claim payment to be
                                   made, making adjustments for any
                                   disallowed amounts or authorized debt
                                   collection activities.
Acquired_Loan_Claim_Processing_8   A guaranteed loan system must           JFMIPSR-00-01,pg45       FFMIA         Mandatory        FV        Record Loans and Grants
                                   provide an automated interface with
                                   the Core Financial System to initiate a
                                   disbursement of the claim payment to
                                   the lender. If the guaranteed loan
                                   system processes payments, it must
                                   meet the requirements in the Core
                                   Financial System Requirements
                                   related to payments data to the Core
                                   Financial System.


Acquired_Loan_Claim_Processing_9   A guaranteed loan system must record JFMIPSR-00-01,pg45          FFMIA         Mandatory        FV        Record Loans and Grants
                                   acquired loan information and
                                   establish appropriate accounting
                                   entries such as receivables.




    July 29, 2009                                                         Business Transformation Agency                                                    Page 6 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Acceptance_And_Trac The benefit system must capture all       JFMIPSR-01-01,pg14       FFMIA        Mandatory        PV        Manage Benefits
king_1                            applicable mandatory data elements        JFMIPSR-01-01,pg42                                               Manage Human Resources
                                  (i.e., universal and appropriate                                                                           Compensation and Reimbursements
                                  categorical), which include:                                                                               Sustain Human Resources
                                  - Name and address of claim holder
                                  (person on whose record benefit is
                                  earned/due)
                                  - SSN of claim holder
                                  - Birth date of the claim holder
                                  - Date of initial claim
                                  - Claimant information, if other than
                                  claim holder, including name, address,
                                  SSN, and birth date;
                                  - the claimant's relationship to claim
                                  holder, when different from the claim
                                  holder (e.g., self, spouse, child,
                                  dependent parent)
                                  - Name and relationship of a
                                  representative payee, including estate
                                  executors or legal guardians, when
                                  applicable
                                  - The specific benefit(s) for which the
                                  claim is made
                                  - Claimant address
                                  - Bank information for direct deposit, if
                                  applicable including American Bank
                                  Association routing number, claimant
                                  bank account number, and account
                                  type
                                  - Type of evidence/proofs required and
                                  submitted when applicable
                                  - Status of the claim (e.g. approved,
                                  pending, denied)
                                  - For benefit systems relating to
                                  taxable programs, information needed
                                  to determine withholding amount such
                                  as: withholding status (e.g., married,
                                  single, or exempt), tax number of
                                  withholding allowances, back-up
Benefit_Claim_Acceptance_And_Trac The benefit system must provide the       JFMIPSR-01-01,pg14       FFMIA        Mandatory        PV        Manage Benefits
king_10                           capability to track the status of due
                                  process or other appeal proceedings
                                  when applicable, after an initial claim
                                  has been denied.




    July 29, 2009                                                        Business Transformation Agency                                                        Page 7 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Acceptance_And_Trac The benefit system should maintain a JFMIPSR-01-01,pg15          FFMIA        Value Added      PV        Manage Benefits
king_11                           system record of pending claims and
                                  the status of other information
                                  including:
                                  - where in the process an ongoing
                                  claim is located,
                                  - who is holding claim,
                                  - what actions are needed to complete
                                  the claim,
                                  - whether additional information is
                                  needed,
                                  - accommodation of explanation codes
                                  to indicate the reason why the claim is
                                  pending.

Benefit_Claim_Acceptance_And_Trac The benefit system should allow the     JFMIPSR-01-01,pg15       FFMIA        Value Added      PV        Manage Benefits
king_12                           user to update the status of the
                                  following items:
                                  - where in the process an ongoing
                                  claim is located,
                                  - who is holding claim,
                                  - what actions are needed to complete
                                  the claim,
                                  - whether additional information is
                                  needed,
                                  - accommodation of explanation codes
                                  to indicate the reason why the claim is
                                  pending.

Benefit_Claim_Acceptance_And_Trac The benefit system must maintain all JFMIPSR-01-01,pg14          FFMIA        Mandatory        PV        Manage Benefits
king_2                            of the data elements specified in the
                                  "Application Information Stores"
                                  (reference listing in 16.01.01) so
                                  Information is readily accessible
                                  through standard online queries or
                                  reports, until the claim is approved and
                                  a master record is established, or until
                                  a final determination is made denying
                                  the claim.




    July 29, 2009                                                       Business Transformation Agency                                                       Page 8 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Acceptance_And_Trac The benefit system must provide for     JFMIPSR-01-01,pg14       FFMIA        Mandatory        PV        Manage Benefits
king_3                            electronic acceptance of benefit
                                  applications by fiscal year 2003. If an
                                  agency anticipates receipt by
                                  electronic means of 50,000 or more
                                  submittals of a particular form, the
                                  system must allow multiple methods of
                                  electronic signatures for the submittal
                                  of such form, whenever feasible and
                                  appropriate. Additionally, the system
                                  must provide for the electronic
                                  acknowledgement of electronic forms
                                  that are successfully submitted.




Benefit_Claim_Acceptance_And_Trac The benefit system must capture all     JFMIPSR-01-01,pg14       FFMIA        Mandatory        PV        Manage Benefits
king_4                            correspondence, including due           JFMIPSR-01-01,pg35,36
                                  process requests submitted by various
                                  electronic mediums and automatically
                                  associate the correspondence with the
                                  specific claim for the required action.
                                  For manually submitted
                                  correspondence, the benefit system
                                  must provide for associating the
                                  correspondence with the specific
                                  application or existing claimant master
                                  record for the required action.




Benefit_Claim_Acceptance_And_Trac The benefit system must incorporate JFMIPSR-01-01,pg14           FFMIA        Mandatory        PV        Manage Benefits
king_5                            input and completeness controls to
                                  ensure only complete applications are
                                  accepted by the system when
                                  electronic methods (e.g., web based,
                                  telecommunications) are used to
                                  facilitate claim form acceptance.




    July 29, 2009                                                       Business Transformation Agency                                                       Page 9 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Acceptance_And_Trac The benefit system must provide the      JFMIPSR-01-01,pg14         FFMIA        Mandatory        PV        Manage Benefits
king_6                            capability to flag a claimant's paper
                                  based application as incomplete and
                                  to suspend further processing of the
                                  application until it is properly
                                  completed as specified by program
                                  requirements.
Benefit_Claim_Acceptance_And_Trac The benefit system must store         JFMIPSR-01-01,pg14            FFMIA        Mandatory        PV        Manage Benefits
king_7                            incomplete applications in accordance
                                  with agency policies, and provide for
                                  automatic purging of incomplete
                                  applications after a time period
                                  specified by the agency.


Benefit_Claim_Acceptance_And_Trac For each claim, the benefit system       JFMIPSR-01-01,pg14         FFMIA        Mandatory        PV        Manage Benefits
king_8                            must associate a unique identifier                                                                          Sustain Human Resources
                                  (e.g., initials or user code) of the
                                  employee assigned to review the
                                  claim.
Benefit_Claim_Acceptance_And_Trac The benefit system must utilize an         JFMIPSR-01-01,pg14       FFMIA        Mandatory        PV        Manage Benefits
king_9                            alternative application procedure that                                                                      Sustain Human Resources
                                  accommodates persons with
                                  disabilities (e.g., blind, missing limbs).

Benefit_Claim_Processing_1           The benefit system must utilize          JFMIPSR-01-01,pg15      FFMIA        Mandatory        PV        Manage Benefits
                                     claimant data that has been submitted                                                                    Sustain Human Resources
                                     electronically in an automated fashion
                                     without manual intervention (i.e., avoid
                                     re-entering data from one component
                                     to another).




    July 29, 2009                                                          Business Transformation Agency                                                  Page 10 of 742
                                                        Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Benefit_Claim_Processing_10    The benefit system must facilitate user JFMIPSR-01-01,pg16       FFMIA         Mandatory        PV        Manage Benefits
                               queries on individual claims.                                                                             Sustain Human Resources
                               Specifically, for all claims that have
                               been received and recorded in the
                               system, the system must be able to
                               retrieve data maintained in the
                               application information stores by
                               querying the claim holders' (or
                               claimant if different) information. For
                               example, data must be retrievable by
                               query on full name, and Social
                               Security Number (SSN) or taxpayer ID
                               number.

Benefit_Claim_Processing_100   The benefit system must provide for    JFMIPSR-01-01,pg18        FFMIA         Mandatory        PV        Manage Benefits
                               automated routines that access                                                                            Manage Human Resources
                               claimant master record data to                                                                            Compensation and Reimbursements
                               facilitate calculating the amount of                                                                      Sustain Human Resources
                               benefits due claimants.
Benefit_Claim_Processing_101   The benefit system must, at a          JFMIPSR-01-01,pg19        FFMIA         Mandatory        PV        Manage Benefits
                               minimum, accumulate actual                                                                                Manage Human Resources
                               payments for each payee annually.                                                                         Compensation and Reimbursements
                                                                                                                                         Sustain Human Resources

Benefit_Claim_Processing_102   The benefit system must support the JFMIPSR-01-01,pg23,24        FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                            PV        Manage Human Resources
                               reporting all disbursements made                                                                          Compensation and Reimbursements
                               under the delegation in the agency's                                                                      Perform Financial Reporting
                               payment accounting reports to the
                               Financial Management Service (FMS),
                               using the appropriate agency
                               accounting codes, as authorized by
                               FMS.

Benefit_Claim_Processing_103   The benefit system must support the JFMIPSR-01-01,pg23,24        FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                            PV        Manage Human Resources
                               submitting check issuance data in a                                                                       Compensation and Reimbursements
                               timely and accurate manner to FMS no                                                                      Perform Financial Reporting
                               later than the close of business of the
                               week in which the issue dates occur
                               and at month's end.




    July 29, 2009                                                     Business Transformation Agency                                                  Page 11 of 742
                                                     Defense Financial Management Improvement Guidance

            Rule Name                   Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefit_Claim_Processing_104   The benefit system must support the JFMIPSR-01-01,pg23,24     FFMIA        Mandatory        PV        Manage Benefits
                               benefit payment execution process by                                                                  Manage Human Resources
                               including a payee's taxpayer                                                                          Compensation and Reimbursements
                               identifying number on payment
                               vouchers.
Benefit_Claim_Processing_105   The benefit system must support the JFMIPSR-01-01,pg23,24     FFMIA        Mandatory        FV        Create Electronic Fund Transfer File
                               benefit payment execution process by                                                        PV        Manage Benefits
                               complying with all applicable EFT                                                                     Manage Human Resources
                               system requirements including those                                                                   Compensation and Reimbursements
                               related to message authentication and
                               enhanced security, unless explicitly
                               waived in writing by the CDO.



Benefit_Claim_Processing_106   The benefit system must support the JFMIPSR-01-01,pg24        FFMIA        Mandatory        PV        Manage Benefits
                               benefit payment execution process by                                                                  Manage Human Resources
                               automatically identifying and selecting                                                               Compensation and Reimbursements
                               payments to be disbursed in a
                               particular payment cycle based on
                               their due dates.


Benefit_Claim_Processing_107   The benefit system must support the JFMIPSR-01-01,pg24        FFMIA        Mandatory        PV        Manage Benefits
                               benefit payment execution process by                                                                  Manage Human Resources
                               allowing changes to payment                                                                           Compensation and Reimbursements
                               schedules by authorized staff prior to
                               acceptance by the disbursing office.


Benefit_Claim_Processing_108   The benefit system must support the JFMIPSR-01-01,pg24        FFMIA        Mandatory        PV        Manage Benefits
                               benefit payment execution process by                                                                  Manage Human Resources
                               allowing specific payments selected                                                                   Compensation and Reimbursements
                               for disbursement to be excluded from
                               the payment cycle and held for later
                               payment.




    July 29, 2009                                                 Business Transformation Agency                                                    Page 12 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_109   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        FV        Generate General Ledger
                               benefit payment execution process by                                                             PV        Transactions
                               automatically computing net amounts                                                                        Manage Benefits
                               to be disbursed, after taking into                                                                         Manage Human Resources
                               account withholdings, interest,                                                                            Compensation and Reimbursements
                               garnishments, or other offsets as
                               needed, in accordance with applicable
                               regulations. Generate the appropriate
                               transactions to reflect the above
                               deductions and additions.



Benefit_Claim_Processing_11    The benefit system must support the     JFMIPSR-01-01,pg27        FFMIA         Mandatory        PV        Manage Benefits
                               benefit recovery receivable servicing
                               process by allowing for the waiver of
                               charges with appropriate authority.

Benefit_Claim_Processing_110   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        PV        Manage Benefits
                               benefit payment execution process by                                                                       Manage Human Resources
                               automatically determining taxable                                                                          Compensation and Reimbursements
                               benefit payments from non-taxable
                               payments.


Benefit_Claim_Processing_111   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                             PV        Manage Human Resources
                               collecting information on interest paid                                                                    Compensation and Reimbursements
                               if applicable, and recording the                                                                           Process Authorized Personnel and
                               amounts to the proper ledger account.                                                                      Benefits Liability Information


Benefit_Claim_Processing_112   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                             PV        Manage Human Resources
                               calculating totals by Agency Location                                                                      Compensation and Reimbursements
                               Code (ALC) and TAFS for inclusion on                                                                       Update Chart of Accounts and SFIS
                               the payment schedule.                                                                                      Attribute and Pro Forma Entries and
                                                                                                                                          Calendar


Benefit_Claim_Processing_113   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                             PV        Manage Human Resources
                               sorting individual payment detail by                                                                       Compensation and Reimbursements
                               TAFS to enable SF-224 reconciliation.                                                                      Process Authorized Personnel and
                                                                                                                                          Benefits Liability Information




    July 29, 2009                                                      Business Transformation Agency                                                   Page 13 of 742
                                                     Defense Financial Management Improvement Guidance

            Rule Name                   Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefit_Claim_Processing_114   The benefit system must support the JFMIPSR-01-01,pg24       FFMIA         Mandatory        FV        Collect
                               benefit payment execution process by                                                        PV        Create Electronic Fund Transfer File
                               providing for various forms of payment                                                                Disburse
                               to be used, (i.e., check or electronic                                                                Manage Benefits
                               funds transfer).                                                                                      Manage Human Resources
                                                                                                                                     Compensation and Reimbursements



Benefit_Claim_Processing_115   The benefit system must support the JFMIPSR-01-01,pg24       FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                        PV        Manage Human Resources
                               supporting Treasury-specific standards                                                                Compensation and Reimbursements
                               for format of check and EFT payment                                                                   Process Authorized Personnel and
                               requests.                                                                                             Benefits Liability Information


Benefit_Claim_Processing_116   The benefit system must support the JFMIPSR-01-01,pg24       FFMIA         Mandatory        PV        Manage Benefits
                               benefit payment execution process by                                                                  Manage Human Resources
                               automatically updating payment                                                                        Compensation and Reimbursements
                               records based on updates recorded in                                                                  Sustain Human Resources
                               the payee's master record, such as
                               change of address, changes in deposit
                               account information, etc.


Benefit_Claim_Processing_117   The benefit system must support the JFMIPSR-01-01,pg24       FFMIA         Mandatory        FV        Calculate Payment Adjustments
                               benefit payment execution process by                                                        PV        Manage Benefits
                               allowing a payment request to be                                                                      Manage Human Resources
                               removed from the automated                                                                            Compensation and Reimbursements
                               scheduling stream and scheduled as a
                               manual payment by an authorized
                               official.
Benefit_Claim_Processing_118   The benefit system must support the JFMIPSR-01-01,pg24       FFMIA         Mandatory        PV        Manage Benefits
                               benefit payment execution process by                                                                  Manage Human Resources
                               allowing the user to trigger an                                                                       Compensation and Reimbursements
                               immediate benefit payment for
                               "emergency " situations.




    July 29, 2009                                                 Business Transformation Agency                                                    Page 14 of 742
                                                        Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_119   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                             PV        Manage Human Resources
                               providing the capability to schedule                                                                       Compensation and Reimbursements
                               and make payments in various forms                                                                         Process Authorized Personnel and
                               (e.g., ACH, SF-1166) as required by                                                                        Benefits Liability Information
                               an agency's disbursing offices,
                               including physical media (e.g., tape,
                               electronic transfer).


Benefit_Claim_Processing_12    The benefit system must support the     JFMIPSR-01-01,pg28        FFMIA         Mandatory        FV        Generate Pro Forma Entries for
                               benefit recovery receivable servicing                                                            PV        Revenue Collections
                               process by matching receipts to the                                                                        Manage Benefits
                               appropriate receivables and updating                                                                       Record and Manage Receivable
                               system balances.


Benefit_Claim_Processing_120   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        FV        Generate Pro Forma Entries for Post
                               benefit payment execution process by                                                             PV        Cancel Payment
                               allowing for cancellation of an entire                                                                     Manage Benefits
                               payment schedule or a single payment                                                                       Manage Human Resources
                               within a payment schedule after                                                                            Compensation and Reimbursements
                               payments are scheduled and prior to
                               actual disbursement by Treasury.



Benefit_Claim_Processing_121   The benefit system must support the JFMIPSR-01-01,pg24            FFMIA         Mandatory        FV        Generate Offsetting Liability or
                               benefit payment execution process by                                                             PV        Receivable Pro Forma Entries
                               providing features to reduce the                                                                           Manage Benefits
                               payment amount due a claimant, in                                                                          Manage Human Resources
                               order to offset an outstanding                                                                             Compensation and Reimbursements
                               receivable owed by the claimant, in
                               accordance with applicable laws,
                               regulations, and provisions of the
                               Treasury Offset Program (TOP).
                               However, the system must properly
                               record the impact of the entire amount
                               of the transaction in both budgetary
                               and proprietary (i.e., entire amount is
                               expensed, payables or cash accounts
                               reflect net outlay, budgetary resources
                               increased by amount of nonfederal
                               receivable collected, etc.)




    July 29, 2009                                                      Business Transformation Agency                                                   Page 15 of 742
                                                       Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefit_Claim_Processing_122   The benefit system must provide a        JFMIPSR-01-01,pg24      FFMIA        Mandatory        PV        Manage Benefits
                               function for review and certification by
                               an authorized certifying officer.

Benefit_Claim_Processing_123   The benefit system must generate the JFMIPSR-01-01,pg24          FFMIA        Mandatory        FV        Generate General Ledger
                               appropriate transactions to reflect the                                                        PV        Transactions
                               computed deductions and additions.                                                                       Manage Benefits

Benefit_Claim_Processing_124   The benefit system must support the JFMIPSR-01-01,pg24           FFMIA        Mandatory        FV        Manage Benefits
                               benefit payment execution process by                                                           PV        Manage Human Resources
                               providing for reissuing payments for                                                                     Compensation and Reimbursements
                               misplaced payments, lost or stolen                                                                       Process Authorized Personnel and
                               checks.                                                                                                  Benefits Liability Information


Benefit_Claim_Processing_125   The benefit system should support the JFMIPSR-01-01,pg25         FFMIA        Value Added      FV        Create Electronic Fund Transfer File
                               benefit payment execution process by                                                           PV        Generate General Ledger
                               automatically consolidating amounts                                                                      Transactions
                               due benefit claimants when the                                                                           Manage Benefits
                               claimant is entitled to more than one                                                                    Manage Human Resources
                               benefit administered by the same                                                                         Compensation and Reimbursements
                               agency, and itemizing all payments
                               covered by the one check or EFT on a
                               payment advice or addendum to the
                               EFT file per Treasury specifications.



Benefit_Claim_Processing_126   The benefit system should support the JFMIPSR-01-01,pg25         FFMIA        Value Added      PV        Manage Benefits
                               benefit payment execution process by                                                                     Manage Human Resources
                               allowing for the splitting of a single                                                                   Compensation and Reimbursements
                               benefit payment into separate bank                                                                       Sustain Human Resources
                               accounts (i.e., allotments) as indicated
                               on the claimants direct deposit request
                               form.


Benefit_Claim_Processing_127   The benefit system should support the JFMIPSR-01-01,pg25         FFMIA        Value Added      FV        Collect
                               benefit payment execution process by                                                           PV        Convert United States Dollar
                               providing for making payments in a                                                                       Equivalent to Foreign Equivalent
                               foreign currency.                                                                                        Disburse
                                                                                                                                        Manage Benefits
                                                                                                                                        Manage Human Resources
                                                                                                                                        Compensation and Reimbursements




    July 29, 2009                                                    Business Transformation Agency                                                    Page 16 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefit_Claim_Processing_128   The benefit system must support the JFMIPSR-01-01,pg25            FFMIA         Mandatory        FV        Establish Customer Information
                               benefit payment confirmation and                                                                 PV        Manage Benefits
                               follow-up process by updating master                                                                       Manage Human Resources
                               record information resulting from                                                                          Compensation and Reimbursements
                               payments made by the core system (if
                               applicable).
Benefit_Claim_Processing_129   The benefit system must support the JFMIPSR-01-01,pg25            FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment confirmation and                                                                 PV        Manage Human Resources
                               follow-up process by allowing the user                                                                     Compensation and Reimbursements
                               to record the outcome of the Treasury                                                                      Process Authorized Personnel and
                               search when recertified checks are                                                                         Benefits Liability Information
                               issued because original checks are
                               lost, stolen, or destroyed.


Benefit_Claim_Processing_13    The benefit system must support the     JFMIPSR-01-01,pg28        FFMIA         Mandatory        FV        Generate Pro Forma Entries for
                               benefit recovery receivable servicing                                                            PV        Revenue Collections
                               process by providing the ability to                                                                        Manage Benefits
                               apply receipts to more than one                                                                            Record and Manage Receivable
                               receivable.
Benefit_Claim_Processing_130   The benefit system must support the JFMIPSR-01-01,pg25            FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment confirmation and                                                                 PV        Manage Human Resources
                               follow-up process by providing                                                                             Compensation and Reimbursements
                               information about each payment to                                                                          Process Funded Payroll and Benefits
                               reflect the stage of the scheduling                                                                        Information Civilian and Military
                               process that the payment has reached
                               and the date each step was reached
                               for the following processing steps:
                               • payment scheduled;

                               • schedule sent to appropriate
                               disbursing office; and
                               • payment issued by appropriate
                               disbursing office.


Benefit_Claim_Processing_131   The benefit system must support the     JFMIPSR-01-01,pg25        FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment confirmation and                                                                 PV        Manage Human Resources
                               follow-up process by providing for                                                                         Compensation and Reimbursements
                               comparison of the agency's payment                                                                         Validate Ready to Pay File Information
                               schedule and the disbursing office's
                               accomplished payment schedule.




    July 29, 2009                                                      Business Transformation Agency                                                    Page 17 of 742
                                                        Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefit_Claim_Processing_132   The benefit system must support the     JFMIPSR-01-01,pg25        FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment confirmation and                                                                 PV        Manage Human Resources
                               follow-up process by updating                                                                              Compensation and Reimbursements
                               payment information when                                                                                   Validate Ready to Pay File Information
                               confirmation is received from the
                               disbursing office, including the paid
                               schedule number, check numbers or
                               trace numbers, date, amount of
                               payment, and payment method (e.g.,
                               check or EFT).

Benefit_Claim_Processing_133   The benefit system must support the JFMIPSR-01-01,pg25            FFMIA         Mandatory        FV        Manage Benefits
                               benefit payment confirmation and                                                                 PV        Manage Human Resources
                               follow-up process by automatically                                                                         Compensation and Reimbursements
                               liquidating the related liability or the in-                                                               Validate Ready to Pay File Information
                               transit amount when payment
                               confirmation updates the system.


Benefit_Claim_Processing_134   The benefit system must support the JFMIPSR-01-01,pg26            FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable                                                                      PV        Manage Human Resources
                               establishment process by recording                                                                         Compensation and Reimbursements
                               the establishment of receivables in the                                                                    Sustain Human Resources
                               claimant's master record.                                                                                  Update Receivable Information
                                                                                                                                          Validate Receipt Information


Benefit_Claim_Processing_135   The benefit system must support the JFMIPSR-01-01,pg26            FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable                                                                      PV        Manage Human Resources
                               establishment process by providing for                                                                     Compensation and Reimbursements
                               the establishment of receivables in                                                                        Update Receivable Information
                               other systems such as centralized                                                                          Validate Receipt Information
                               accounts receivable systems, based
                               on individual claim holder debts.


Benefit_Claim_Processing_136   The benefit system must support the JFMIPSR-01-01,pg26            FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable                                                                      PV        Manage Human Resources
                               establishment process by providing                                                                         Compensation and Reimbursements
                               the capability for a user to select the                                                                    Update Receivable Information
                               reason the receivable is being
                               recorded from a domain of recognized
                               reasons.




    July 29, 2009                                                      Business Transformation Agency                                                    Page 18 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_137   The benefit system must support the      JFMIPSR-01-01,pg26        FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable                                                                       PV        Manage Human Resources
                               establishment process by supporting                                                                         Compensation and Reimbursements
                               the establishment and tracking of                                                                           Record and Manage Receivable
                               receivables to be paid under
                               installment plans, including plans for
                               which payments have been
                               rescheduled.
Benefit_Claim_Processing_138   The benefit system must support the JFMIPSR-01-01,pg26             FFMIA         Mandatory        FV        Establish Receivable
                               benefit recovery receivable                                                                       PV        Manage Benefits
                               establishment process by calculating,                                                                       Manage Human Resources
                               generating and posting the required                                                                         Compensation and Reimbursements
                               ledger entries for receivables resulting
                               from duplicate payments or erroneous
                               payments, and the corresponding
                               expenditure reductions, or other
                               offsets.


Benefit_Claim_Processing_139   The benefit system must support the JFMIPSR-01-01,pg26             FFMIA         Mandatory        FV        Establish Receivable
                               benefit recovery receivable                                                                       PV        Generate Receivable Pro Forma
                               establishment process providing the                                                                         Entries
                               capability to print bills, accommodating                                                                    Manage Benefits
                               the generation of standard forms and                                                                        Manage Human Resources
                               turnaround documents to be used as a                                                                        Compensation and Reimbursements
                               remittance advice. Allow customized
                               text in generated billing documents.



Benefit_Claim_Processing_14    The benefit system must support the JFMIPSR-01-01,pg28             FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable servicing                                                             PV        Review Outstanding Interest Balance
                               process by updating receivable
                               balances document by document,
                               classifying and posting against
                               principal, interest, administrative fees,
                               etc., required by OMB Circular A-129,
                               "Managing Federal Credit Programs.


Benefit_Claim_Processing_140   The benefit system must provide the      JFMIPSR-01-01,pg26        FFMIA         Mandatory        PV        Manage Benefits
                               capability for a user to record the                                                                         Manage Human Resources
                               beginning and ending dates of the                                                                           Compensation and Reimbursements
                               payment period as well as the
                               frequency and amount of each
                               payment.

    July 29, 2009                                                       Business Transformation Agency                                                   Page 19 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                     Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Benefit_Claim_Processing_141   The benefit system must allow             JFMIPSR-01-01,pg26        FFMIA         Mandatory        PV        Manage Benefits
                               customized text in generated billing                                                                         Manage Human Resources
                               documents.                                                                                                   Compensation and Reimbursements

Benefit_Claim_Processing_142   The benefit system must support the       JFMIPSR-01-01,pg26,27     FFMIA         Mandatory        PV        Manage Benefits
                               benefit recovery receivable                                                                                  Manage Human Resources
                               establishment process by providing                                                                           Compensation and Reimbursements
                               features to notify overpaid individuals                                                                      Separate or Terminate Human
                               (or claimant's estate) of:                                                                                   Resources
                               • the amount overpaid and how and                                                                            Sustain Human Resources
                               when overpayment occurred;
                               • the right to appeal the overpayment
                               determination;
                               • the required recovery; and

                               • the right to request a waiver of
                               recovery.




Benefit_Claim_Processing_143   The benefit system must support the JFMIPSR-01-01,pg27              FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable                                                                        PV        Manage Human Resources
                               establishment process by recording                                                                           Compensation and Reimbursements
                               adjustments, both increases and                                                                              Update Receivable Amount
                               decreases (i.e., non-cash credits) and
                               post to a claimant's master record.


Benefit_Claim_Processing_144   The benefit system must support the JFMIPSR-01-01,pg27              FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable                                                                        PV        Manage Human Resources
                               establishment process by dating the                                                                          Compensation and Reimbursements
                               bills with the system-generated date or                                                                      Record and Manage Receivable
                               with the date supplied by an                                                                                 Update Receivable Information
                               authorized user.
Benefit_Claim_Processing_145   The benefit system must support the JFMIPSR-01-01,pg27              FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable                                                                        PV        Manage Human Resources
                               establishment process by accepting                                                                           Compensation and Reimbursements
                               transactions that generate receivables                                                                       Record and Manage Receivable
                               from other systems in a standard
                               format for entry into the benefits
                               system.
Benefit_Claim_Processing_146   The benefit system must support the       JFMIPSR-01-01,pg27        FFMIA         Mandatory        FV        Establish Receivable
                               benefit recovery receivable                                                                        PV        Manage Benefits
                               establishment process by printing                                                                            Manage Human Resources
                               statements as well as bills.                                                                                 Compensation and Reimbursements


    July 29, 2009                                                        Business Transformation Agency                                                  Page 20 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_147   The benefit system must support the     JFMIPSR-01-01,pg27        FFMIA         Mandatory        FV        Establish Receivable
                               benefit recovery receivable servicing                                                            PV        Generate Receivable Pro Forma
                               process by updating each master                                                                            Entries
                               record when billing documents are                                                                          Manage Benefits
                               generated and collections are                                                                              Manage Human Resources
                               received.                                                                                                  Compensation and Reimbursements
                                                                                                                                          Update Receivable Amount


Benefit_Claim_Processing_148   The benefit system must support the     JFMIPSR-01-01,pg27        FFMIA         Mandatory        FV        Manage Benefits
                               benefit recovery receivable servicing                                                            PV        Manage Human Resources
                               process by providing automatic                                                                             Compensation and Reimbursements
                               calculation and assessment of                                                                              Update Receivable Amount
                               interest, administrative charges, and
                               penalty charges as applicable on
                               overdue receivables.


Benefit_Claim_Processing_15    The benefit system must support the JFMIPSR-01-01,pg28            FFMIA         Mandatory        FV        Maintain Accounts Receivable
                               benefit recovery receivable servicing                                                            PV        Balances
                               process by identifying receivables that                                                                    Manage Benefits
                               have been reduced by some means
                               other than cash collections, such as
                               waivers or write-offs.


Benefit_Claim_Processing_16    The benefit system must support the JFMIPSR-01-01,pg28            FFMIA         Mandatory        FV        Generate Pro Forma Entries for
                               benefit collection process by recording                                                          PV        Revenue Collections
                               complete and partial receipts                                                                              Manage Benefits
                               according to the Debt Collection Act                                                                       Manage Human Resources
                               (DCA) of 1982 and the Debt Collection                                                                      Compensation and Reimbursements
                               Improvement Act (DCIA) of 1996 and                                                                         Record and Manage Receivable
                               other applicable regulations.


Benefit_Claim_Processing_17    The benefit system must support the JFMIPSR-01-01,pg28            FFMIA         Mandatory        FV        Generate Pro Forma Entries for
                               benefit collection process by recording                                                          PV        Revenue Collections
                               deposits and related debit vouchers for                                                                    Manage Benefits
                               reconciliation to deposit confirmation                                                                     Manage Human Resources
                               information provided by Treasury or                                                                        Compensation and Reimbursements
                               the banking system. Specifically,                                                                          Record and Manage Receivable
                               providing the capability for a user to
                               record the deposit ticket or debit
                               voucher document amount, number,
                               and date.




    July 29, 2009                                                      Business Transformation Agency                                                   Page 21 of 742
                                                      Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_18   If the user is not able locate an       JFMIPSR-01-01,pg28       FFMIA        Mandatory        FV        Generate Pro Forma Entries for
                              existing receivable in the master                                                              PV        Revenue Collections
                              record of the person making a                                                                            Manage Benefits
                              payment the benefit system must                                                                          Manage Human Resources
                              provide the capability to associate the                                                                  Compensation and Reimbursements
                              collection of funds to the claimant's                                                                    Record and Manage Receivable
                              master record if a master record
                              exists.
Benefit_Claim_Processing_19   The benefit system must support the JFMIPSR-01-01,pg28           FFMIA        Mandatory        FV        Generate Pro Forma Entries for
                              benefit collection process by providing                                                        PV        Revenue Collections
                              features to record method of recovery                                                                    Manage Benefits
                              (i.e., payment; internal offset; TOP,                                                                    Manage Human Resources
                              compromise settlement; civil suit;                                                                       Compensation and Reimbursements
                              etc.).                                                                                                   Record and Manage Receivable


Benefit_Claim_Processing_2    The benefit system must have the     JFMIPSR-01-01,pg15          FFMIA        Mandatory        PV        Manage Benefits
                              ability to date and time stamp due
                              process requests and other time
                              sensitive correspondence (incoming
                              and outgoing) that has been
                              received/sent through electronic
                              mediums.
Benefit_Claim_Processing_20   The benefit system must support the JFMIPSR-01-01,pg28           FFMIA        Mandatory        FV        Generate Pro Forma Entries for
                              benefit collection process by providing                                                        PV        Revenue Collections
                              the capability to flag a claimant's                                                                      Manage Benefits
                              receivable record to reflect "due                                                                        Manage Human Resources
                              process" status, in order to suspend                                                                     Compensation and Reimbursements
                              collection activities associated with the                                                                Record and Manage Receivable
                              receivable. Additionally, the system
                              must automatically allow collection
                              activities to resume when due process
                              has expired or the flag has been
                              reversed.


Benefit_Claim_Processing_21   For denied claims, the benefit system JFMIPSR-01-01,pg16         FFMIA        Mandatory        PV        Manage Benefits
                              must accommodate explanation codes
                              to indicate the reason why the claim
                              has been denied.




    July 29, 2009                                                  Business Transformation Agency                                                   Page 22 of 742
                                                      Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_22   The benefit system must support the JFMIPSR-01-01,pg28          FFMIA         Mandatory        FV        Generate Pro Forma Entries for
                              benefit collection process by providing                                                        PV        Revenue Collections
                              for the processing of cash or credit                                                                     Manage Benefits
                              card receipts against outstanding                                                                        Record and Manage Receivable
                              receivables.
Benefit_Claim_Processing_23   The benefit system must support the JFMIPSR-01-01,pg29          FFMIA         Mandatory        FV        Generate Offsetting Liability or
                              benefit offset process by allowing for                                                         PV        Receivable Pro Forma Entries
                              offset of funds due to delinquent                                                                        Manage Benefits
                              indebtedness through administrative                                                                      Manage Human Resources
                              offset, Federal employee salary offset,                                                                  Compensation and Reimbursements
                              and income tax refund offset.


Benefit_Claim_Processing_24   The benefit system must support the JFMIPSR-01-01,pg29          FFMIA         Mandatory        PV        Manage Benefits
                              benefit offset process by providing the                                                                  Manage Human Resources
                              capability for a user to record the                                                                      Compensation and Reimbursements
                              effective date of the offset plan.

Benefit_Claim_Processing_25   The benefit system must support the JFMIPSR-01-01,pg29          FFMIA         Mandatory        PV        Manage Benefits
                              benefit offset process by incorporating                                                                  Manage Human Resources
                              logic to reflect the legal authority as to                                                               Compensation and Reimbursements
                              whether the payment type may be
                              reduced by offset, or is exempt from
                              the TOP or other offsets.


Benefit_Claim_Processing_26   The benefit system must support the JFMIPSR-01-01,pg29          FFMIA         Mandatory        FV        Generate Offsetting Liability or
                              benefit offset process by providing the                                                        PV        Receivable Pro Forma Entries
                              capability to automatically exclude                                                                      Manage Benefits
                              certain receivables from the offset                                                                      Manage Human Resources
                              function.                                                                                                Compensation and Reimbursements


Benefit_Claim_Processing_27   The benefit system must support the JFMIPSR-01-01,pg29          FFMIA         Mandatory        FV        Generate Offsetting Liability or
                              benefit offset process by automatically                                                        PV        Receivable Pro Forma Entries
                              subjecting receivables to offset which                                                                   Manage Benefits
                              had been previously excluded because                                                                     Manage Human Resources
                              of due process or bankruptcy status                                                                      Compensation and Reimbursements
                              once status has been resolved.



Benefit_Claim_Processing_28   The benefit system must comply with   JFMIPSR-01-01,pg29        FFMIA         Mandatory        PV        Manage Benefits
                              the requirements of the IRS Tax                                                                          Manage Human Resources
                              Refund Offset Program and TOP                                                                            Compensation and Reimbursements
                              requirements.


    July 29, 2009                                                   Business Transformation Agency                                                   Page 23 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_29   The benefit system should support the JFMIPSR-01-01,pg29            FFMIA         Value Added      PV        Manage Benefits
                              benefit offset process by providing the
                              capability for a user to select from a
                              domain of offset program participants
                              (i.e., the recipient of the amount to be
                              offset against a claimant's benefit
                              payment).


Benefit_Claim_Processing_3    The benefit system must                   JFMIPSR-01-01,pg15        FFMIA         Mandatory        PV        Manage Benefits
                              accommodate automated case
                              workload distribution by providing for
                              various claim routing options as
                              determined and maintained by the
                              system administrator. For example,
                              provide for the ability to route claims
                              for manual validation.
Benefit_Claim_Processing_30   The benefit system should support the JFMIPSR-01-01,pg29            FFMIA         Value Added      PV        Manage Benefits
                              benefit offset process by providing the
                              capability for a user to create a
                              participant record if the desired offset
                              program recipient does not exist as a
                              participant.
Benefit_Claim_Processing_31   The benefit system should support the JFMIPSR-01-01,pg29            FFMIA         Value Added      PV        Manage Benefits
                              benefit offset process by uniquely                                                                           Manage Human Resources
                              identifying bankruptcy debt so that a                                                                        Compensation and Reimbursements
                              bankruptcy debt is bypassed when                                                                             Separate or Terminate Human
                              computing the legally mandated 65                                                                            Resources
                              percent maximum deduction amount
                              when an account has both
                              garnishment and former spouse
                              deductions in connection with paying
                              retirement benefits.




    July 29, 2009                                                       Business Transformation Agency                                                  Page 24 of 742
                                                        Defense Financial Management Improvement Guidance

            Rule Name                   Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_32   The benefit system must automatically JFMIPSR-01-01,pg16           FFMIA         Mandatory        PV        Manage Benefits
                              create a claimant master record using JFMIPSR-01-01,pg46                                                    Manage Human Resources
                              the claimant information for initial                                                                        Compensation and Reimbursements
                              claims that are approved, when a                                                                            Sustain Human Resources
                              master record for the claimant did not
                              previously exist. The master record
                              must contain all of the following
                              mandatory data elements:
                              - all applicable mandatory data
                              elements (Universal and appropriate
                              categorical) specified within the
                              application information data stores,
                              - general information such as: case
                              status, benefit type, chronology of key
                              dates,
                              - award data such as: total award,
                              gross and or net monthly payment as
                              appropriate,
                              - payment history such as: prior
                              disbursements, collections including
                              principal and interest, accruals,
                              - special collection activity data such
                              as: delinquent debt activity and status.




Benefit_Claim_Processing_33   The benefit system must support the JFMIPSR-01-01,pg30             FFMIA         Mandatory        FV        Generate Pro Forma Entries for
                              funds control process within the                                                                  PV        Revenue Collections
                              benefit recovery receivable                                                                                 Manage Benefits
                              management process by properly                                                                              Record and Manage Receivable
                              recording the budgetary affect on U.S.
                              SGL balances for all transactions
                              typically involved with receivable
                              management.
Benefit_Claim_Processing_34   The benefit system must support the      JFMIPSR-01-01,pg30        FFMIA         Mandatory        FV        Capture Pro Forma Entries
                              benefit entity definition process by                                                              PV        Manage Benefits
                              allowing for recording transactions in
                              multiple TAFS and various fund types
                              including annual, multi-year, and no-
                              year appropriations, and trust funds.




    July 29, 2009                                                      Business Transformation Agency                                                   Page 25 of 742
                                                      Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_35   The benefit system must support the JFMIPSR-01-01,pg30           FFMIA        Mandatory        FV        Manage Benefits
                              benefit entity definition process by                                                           PV        Perform Financial Reporting
                              accommodating reporting for multiple
                              programs within a TAFS, based on the
                              accounting classification elements
                              (e.g., organization level, cost center).


Benefit_Claim_Processing_36   The benefit system must support the JFMIPSR-01-01,pg31           FFMIA        Mandatory        FV        Manage Benefits
                              benefit account definition process by                                                          PV        Update Chart of Accounts and SFIS
                              using account titles consistent with the                                                                 Attribute and Pro Forma Entries and
                              account titles provided in the U.S.                                                                      Calendar
                              SGL.
Benefit_Claim_Processing_37   The benefit system must support the JFMIPSR-01-01,pg31           FFMIA        Mandatory        FV        Manage Benefits
                              benefit account definition process by                                                          PV        Update Chart of Accounts and SFIS
                              using account definitions consistent                                                                     Attribute and Pro Forma Entries and
                              with the account definitions provided in                                                                 Calendar
                              the U.S. SGL.


Benefit_Claim_Processing_38   The benefit system must support the JFMIPSR-01-01,pg31           FFMIA        Mandatory        FV        Manage Benefits
                              benefit account definition process by                                                          PV        Update Chart of Accounts and SFIS
                              providing subsidiary ledger support for                                                                  Attribute and Pro Forma Entries and
                              U.S. SGL accounts and supporting                                                                         Calendar
                              reconciliation of U.S. SGL control
                              accounts to their respective subsidiary
                              records by accounting period.



Benefit_Claim_Processing_39   The benefit system must support the JFMIPSR-01-01,pg31           FFMIA        Mandatory        FV        Manage Benefits
                              benefit transaction definition and                                                             PV        Process Funded Payroll and Benefits
                              processing activities by allowing                                                                        Information Civilian and Military
                              standard transactions, including
                              system-generated transactions, to be
                              established, modified, or deleted by
                              authorized personnel and providing for
                              traceability of changes.


Benefit_Claim_Processing_4    The benefit system must indicate if the JFMIPSR-01-01,pg15       FFMIA        Mandatory        PV        Manage Benefits
                              benefit payment calculation or
                              verification thereof occurred manually.




    July 29, 2009                                                  Business Transformation Agency                                                     Page 26 of 742
                                                     Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_40   The benefit system must support the JFMIPSR-01-01,pg31         FFMIA        Mandatory        FV        Manage Benefits
                              benefit transaction definition and                                                           PV        Process Funded Payroll and Benefits
                              processing activities by generating and                                                                Information Civilian and Military
                              posting compound debit and credit
                              entries to the U.S. SGL accounts and
                              updating both budgetary and
                              proprietary U.S. SGL accounts based
                              on a single input transaction.


Benefit_Claim_Processing_41   The benefit system must support the JFMIPSR-01-01,pg31         FFMIA        Mandatory        FV        Manage Benefits
                              benefit transaction definition and                                                           PV        Process Funded Payroll and Benefits
                              processing activities by providing the                                                                 Information Civilian and Military
                              capability to add, modify, and maintain
                              editing and posting rules through
                              systems tables controlled by
                              authorized personnel.


Benefit_Claim_Processing_42   The benefit system must support the JFMIPSR-01-01,pg31         FFMIA        Mandatory        FV        Manage Benefits
                              benefit transaction definition and                                                           PV        Process Funded Payroll and Benefits
                              processing activities by processing                                                                    Information Civilian and Military
                              transactions consistent with U.S. SGL
                              account descriptions and postings.
                              Use of other than U.S. SGL account
                              numbers (i.e., a pseudo code) is
                              acceptable providing the account
                              descriptions and posting rules are the
                              same as those used in the U.S. SGL
                              for relevant transactions.


Benefit_Claim_Processing_43   The benefit system must automatically JFMIPSR-01-01,pg16       FFMIA        Mandatory        PV        Manage Benefits
                              update an existing claimant master                                                                     Sustain Human Resources
                              record (i.e., claimant already receives
                              a different type of benefit administered
                              by the agency) to reflect the status
                              (pending, approved, or rejected) of
                              additional claims for other benefits the
                              agency administers that are sought by
                              the claimant.




    July 29, 2009                                                 Business Transformation Agency                                                   Page 27 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_44   The benefit system must provide a       JFMIPSR-01-01,pg31        FFMIA         Mandatory        FV        Manage Benefits
                              chart of accounts that roll up to the                                                            PV        Update Chart of Accounts and SFIS
                              accounts as defined in the SGL.                                                                            Attribute and Pro Forma Entries and
                                                                                                                                         Calendar
Benefit_Claim_Processing_45   The benefit system must provide        JFMIPSR-01-01,pg31         FFMIA         Mandatory        PV        Manage Benefits
                              integrity checks including batch
                              numbers to detect duplicate or skipped
                              batches and the validity of header
                              and
                              trailer records.
Benefit_Claim_Processing_46   The benefit system must provide the     JFMIPSR-01-01,pg32        FFMIA         Mandatory        FV        Manage Benefits
                              capability used in the liquidation of                                                            PV        Manage General Ledger
                              commitments, obligations, payables,
                              receivables, or other items, as
                              appropriate.


Benefit_Claim_Processing_47   The benefit system must support the JFMIPSR-01-01,pg32            FFMIA         Mandatory        FV        Manage Benefits
                              benefit transaction definition and                                                               PV        Process Authorized Personnel and
                              processing activities by processing                                                                        Benefits Liability Information
                              system-generated transactions, such
                              as automated payment scheduling,
                              accruals, closing entries, recurring
                              payments, and transactions that
                              generate other transactions in those
                              cases where a single transaction is not
                              sufficient.


Benefit_Claim_Processing_48   The benefit system must support the JFMIPSR-01-01,pg32            FFMIA         Mandatory        PV        Manage Benefits
                              benefit transaction definition and
                              processing activities by automatically
                              liquidating, partially or in full, balances
                              of preceding documents when entering
                              dependent documents.


Benefit_Claim_Processing_49   The benefit system should support the JFMIPSR-01-01,pg32          FFMIA         Value Added      PV        Manage Benefits
                              benefit transaction definition and
                              processing activities by providing the
                              capability to enter and store for future
                              processing any transactions in the
                              current month for processing in the
                              subsequent month.




    July 29, 2009                                                     Business Transformation Agency                                                    Page 28 of 742
                                                       Defense Financial Management Improvement Guidance

            Rule Name                   Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_5    The benefit system must provide the     JFMIPSR-01-01,pg15        FFMIA         Mandatory        PV        Manage Benefits
                              user the ability to update a claimant's                                                                    Sustain Human Resources
                              master record with the results of a
                              manual claim validation or manual
                              verification of the benefit payment
                              amount, or create a new master record
                              if none exists.


Benefit_Claim_Processing_50   The benefit system must provide         JFMIPSR-01-01,pg38        FFMIA         Mandatory        PV        Manage Benefits
                              features to record death information                                                                       Separate or Terminate Human
                              provided from voluntary sources (e.g.                                                                      Resources
                              returned check, funeral home                                                                               Sustain Human Resources
                              notification, and next of kin).


Benefit_Claim_Processing_51   The benefit system must provide all      JFMIPSR-01-01,pg38       FFMIA         Mandatory        PV        Manage Benefits
                              users the capability to perform a "Print
                              Screen" function.
Benefit_Claim_Processing_52   The benefit system must allow users JFMIPSR-01-01,pg38            FFMIA         Mandatory        PV        Manage Benefits
                              to input parameters required to run
                              batch jobs in a production mode either
                              daily, monthly, quarterly or yearly.




    July 29, 2009                                                     Business Transformation Agency                                                  Page 29 of 742
                                                     Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Benefit_Claim_Processing_53   The benefit system should provide for JFMIPSR-01-01,pg40       FFMIA        Value Added      PV        Manage Benefits
                              self-service, claimant-initiated requests                                                              Manage Human Resources
                              that can perform the following                                                                         Compensation and Reimbursements
                              functions:                                                                                             Separate or Terminate Human
                              a. Enable the claimants to request the                                                                 Resources
                              reissuance of misplaced payments                                                                       Sustain Human Resources
                              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 changes to
                              files through a Web browser.
                              d. Enable claimant to complete forms
                              using a Web browser.
                              e. Have the ability to verify the
                              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
                              languages (e.g., English and Spanish).




Benefit_Claim_Processing_54   The benefit system must automatically JFMIPSR-01-01,pg16       FFMIA        Mandatory        PV        Manage Benefits
                              merge the mandatory claimant data                                                                      Sustain Human Resources
                              maintained in the application
                              information stores into the appropriate
                              master record after a claim has been
                              approved and a claimant master
                              record has been established.




    July 29, 2009                                                 Business Transformation Agency                                                  Page 30 of 742
                                                        Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_55   The benefit system must support the      JFMIPSR-01-01,pg40,41     FFMIA         Mandatory        PV        Manage Benefits
                              data entry technical function by
                              utilizing various automated input
                              devices when hard copy applications
                              and correspondence are received.


Benefit_Claim_Processing_56   The benefit system must support the JFMIPSR-01-01,pg40,41          FFMIA         Mandatory        PV        Manage Benefits
                              data entry technical function by
                              supporting both batch and real-time on-
                              line data entry and use the same edit
                              and update rules as appropriate for
                              each mode.
Benefit_Claim_Processing_57   The benefit system must support the      JFMIPSR-01-01,pg40,41     FFMIA         Mandatory        PV        Manage Benefits
                              data entry technical function by
                              supporting simultaneous data
                              entry/access by multiple users in a
                              variety of access modes.
Benefit_Claim_Processing_58   The benefit system must support the JFMIPSR-01-01,pg40,41          FFMIA         Mandatory        PV        Manage Benefits
                              data entry technical function by
                              providing user entry and query screens
                              that support validation of codes
                              entered on the screen, assisting users
                              in determining correct codes if an
                              invalid code is entered, and providing
                              for inquiry by the user to verify valid
                              codes during the data entry process.


Benefit_Claim_Processing_59   The benefit system must support the      JFMIPSR-01-01,pg40,41     FFMIA         Mandatory        PV        Manage Benefits
                              data entry technical function by
                              providing the capability to display
                              inputs required to complete
                              transactions by a user based on the
                              selection of transaction type.
                              Whenever possible, keystroke
                              reducing tools such as drop down
                              menus should be utilized to reduce
                              chance of data entry error.

Benefit_Claim_Processing_6    The benefit system must have the         JFMIPSR-01-01,pg15        FFMIA         Mandatory        PV        Manage Benefits
                              ability to capture what information is
                              needed from the claimant in order to
                              complete an incomplete claim.




    July 29, 2009                                                      Business Transformation Agency                                                  Page 31 of 742
                                                        Defense Financial Management Improvement Guidance

            Rule Name                   Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_60   The benefit system must support the      JFMIPSR-01-01,pg40,41     FFMIA         Mandatory        PV        Manage Benefits
                              data entry technical function by
                              displaying a message to the user
                              notifying them of the acceptance or
                              rejection of each transaction once all
                              inputs are completed.


Benefit_Claim_Processing_61   The benefit system should support the JFMIPSR-01-01,pg41           FFMIA         Value Added      PV        Manage Benefits
                              data entry technical function by
                              identifying erroneous inputs with
                              corrective recommendations.
Benefit_Claim_Processing_62   The benefit system should support the JFMIPSR-01-01,pg41           FFMIA         Value Added      PV        Manage Benefits
                              data entry technical function by
                              providing the capability for financial
                              users to create comments relating to
                              all types of transactions using free-
                              form text.
Benefit_Claim_Processing_63   The benefit system must maintain        JFMIPSR-01-01,pg46         FFMIA         Mandatory        PV        Manage Benefits
                              general data such as demographic                                                                            Sustain Human Resources
                              data other than that specified in the
                              application information stores that has
                              been historically used by the agency in
                              preparing actuarial estimates, for
                              purposes such as forecasting and
                              complying with financial statement
                              reporting requirements.


Benefit_Claim_Processing_64   The benefit system must provide the      JFMIPSR-01-01,pg16        FFMIA         Mandatory        PV        Manage Benefits
                              capability to generate statistics on
                              approved and rejected claim
                              applications.
Benefit_Claim_Processing_65   The benefit system must provide the        JFMIPSR-01-01,pg16      FFMIA         Mandatory        PV        Manage Benefits
                              capability to accept, identify, track, and
                              report manual overrides of system-
                              generated acceptance/rejection
                              recommendations.


Benefit_Claim_Processing_66   The benefit system must allow a user JFMIPSR-01-01,pg16            FFMIA         Mandatory        PV        Manage Benefits
                              who has the proper access to reverse
                              or affirm an initial decision regarding
                              the denial of a benefit, and process the
                              claim accordingly.


    July 29, 2009                                                      Business Transformation Agency                                                  Page 32 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                       Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_67   The benefit system must provide the         JFMIPSR-01-01,pg16        FFMIA         Mandatory        PV        Manage Benefits
                              capability to review all prior employee
                              notations or decisions made while
                              processing a benefit claim.

Benefit_Claim_Processing_68   The benefit system should provide the JFMIPSR-01-01,pg16              FFMIA         Value Added      PV        Manage Benefits
                              capability to record an estimated
                              completion date for pending claims.

Benefit_Claim_Processing_69   The benefit system should have the          JFMIPSR-01-01,pg16        FFMIA         Value Added      PV        Manage Benefits
                              ability, where multiple claims exist for
                              the same claimant, to process the
                              claims sequentially based on order of
                              precedence.
Benefit_Claim_Processing_7    The benefit system must provide for         JFMIPSR-01-01,pg15        FFMIA         Mandatory        PV        Manage Benefits
                              electronic approvals of claims at all
                              levels of the approval process,
                              whenever feasible.
Benefit_Claim_Processing_70   The benefit system must have the        JFMIPSR-01-01,pg16            FFMIA         Mandatory        PV        Manage Benefits
                              ability to automatically compare                                                                               Sustain Human Resources
                              information contained in application(s)
                              that have been submitted by claimants
                              against agency program eligibility
                              criteria (i.e., screen applications for
                              eligibility).


Benefit_Claim_Processing_71   The benefit system must have the            JFMIPSR-01-01,pg16        FFMIA         Mandatory        PV        Manage Benefits
                              ability to accept the manual validation
                              of a claim.
Benefit_Claim_Processing_72   The benefit system must provide for         JFMIPSR-01-01,pg16        FFMIA         Mandatory        PV        Manage Benefits
                              maintaining separate eligibility criteria
                              and processing routines by type of
                              claim.
Benefit_Claim_Processing_73   The benefit system must provide for         JFMIPSR-01-01,pg16        FFMIA         Mandatory        PV        Manage Benefits
                              establishment of various age                                                                                   Sustain Human Resources
                              limitations depending on the type of
                              benefit for automatic verification of
                              program eligibility.




    July 29, 2009                                                         Business Transformation Agency                                                  Page 33 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_74   The benefit system must provide the       JFMIPSR-01-01,pg17         FFMIA         Mandatory        PV        Manage Benefits
                              ability to cross-validate applicant                                                                           Sustain Human Resources
                              information against data maintained
                              for other benefit payment programs
                              which are internal to the administering
                              agency to ensure compliance with all
                              program requirements (e.g., ensure
                              that applicant has not filed for multiple
                              conflicting benefits).


Benefit_Claim_Processing_75   The benefit system must provide           JFMIPSR-01-01,pg17         FFMIA         Mandatory        PV        Manage Benefits
                              features to indicate that the applicant                                                                       Sustain Human Resources
                              submitted required evidence. For
                              example, allow user to record receipt
                              of a school certification pertaining to a
                              claimant or his/her dependent child.


Benefit_Claim_Processing_76   The benefit system must provide            JFMIPSR-01-01,pg16        FFMIA         Mandatory        PV        Manage Benefits
                              features to create and maintain a
                              system record of accepted and
                              rejected claim applications.
Benefit_Claim_Processing_77   The benefit system must provide tools JFMIPSR-01-01,pg17             FFMIA         Mandatory        PV        Manage Benefits
                              to check the appropriate data files to                                                                        Sustain Human Resources
                              determine whether the applicant has
                              submitted a duplicate application or
                              had a recent benefit application
                              rejected.
Benefit_Claim_Processing_78   The benefit system must provide            JFMIPSR-01-01,pg17        FFMIA         Mandatory        PV        Manage Benefits
                              features to determine whether                                                                                 Sustain Human Resources
                              payments being made to the claimant
                              in relation to other internal benefit
                              payment programs affect the
                              claimant's eligibility or payment
                              amount for the benefit under
                              consideration, whenever legally
                              permitted (i.e., permitted by statute or
                              regulation).

Benefit_Claim_Processing_79   The benefit system must allow the          JFMIPSR-01-01,pg17        FFMIA         Mandatory        PV        Manage Benefits
                              user to put the processing of a claim
                              on hold (suspend) while verifying
                              questionable information, and to
                              release hold (suspended) status as
                              appropriate.

    July 29, 2009                                                        Business Transformation Agency                                                  Page 34 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_8    The benefit system must incorporate a JFMIPSR-01-01,pg15             FFMIA         Mandatory        PV        Manage Benefits
                              notification mechanism that informs
                              users (claim evaluators and
                              supervisors) when an application(s)
                              has not completed processing within a
                              time frame that can be specified by the
                              agency.


Benefit_Claim_Processing_80   The benefit system should provide          JFMIPSR-01-01,pg17        FFMIA         Value Added      PV        Manage Benefits
                              ability to inform applicant of potential                                                                      Manage Human Resources
                              eligibility for other internal benefit                                                                        Compensation and Reimbursements
                              payment programs.
Benefit_Claim_Processing_81   The benefit system should have the      JFMIPSR-01-01,pg17           FFMIA         Value Added      PV        Manage Benefits
                              ability to automatically validate                                                                             Separate or Terminate Human
                              survivor applicant information against                                                                        Resources
                              information about the deceased or                                                                             Sustain Human Resources
                              former spouse or related former
                              guardian that is maintained in a master
                              record database.


Benefit_Claim_Processing_82   The benefit system should              JFMIPSR-01-01,pg17            FFMIA         Value Added      PV        Manage Benefits
                              automatically validate dates of        JFMIPSR-01-01,pg17                                                     Manage Human Resources
                              employment, earnings and other                                                                                Compensation and Reimbursements
                              claimant-specific data provided on the                                                                        Sustain Human Resources
                              application for benefits against the
                              work history and earnings information
                              reported to central agencies such as
                              the Internal Revenue Service (IRS),
                              SSA, and OPM when permitted by
                              statute, or against other verified
                              claimant-specific information
                              maintained by the agency.


Benefit_Claim_Processing_83   The benefit system must have the           JFMIPSR-01-01,pg17        FFMIA         Mandatory        PV        Manage Benefits
                              ability to determine if the effective date                                                                    Manage Human Resources
                              of the claim has been reached (e.g.,                                                                          Compensation and Reimbursements
                              the effective date of a retirement                                                                            Separate or Terminate Human
                              claim), and initiate subsequent                                                                               Resources
                              processing.                                                                                                   Sustain Human Resources




    July 29, 2009                                                        Business Transformation Agency                                                  Page 35 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_84   The benefit system must provide          JFMIPSR-01-01,pg17        FFMIA         Mandatory        PV        Manage Benefits
                              features to compute the amount of                                                                           Sustain Human Resources
                              both recurring and non-recurring
                              benefit payments based on all
                              available information (e.g., applicant
                              data, and specific benefit program
                              criteria).
Benefit_Claim_Processing_85   The benefit system must determine      JFMIPSR-01-01,pg17          FFMIA         Mandatory        PV        Manage Benefits
                              the ending date for recurring payments
                              of limited duration.
Benefit_Claim_Processing_86   The benefit system must calculate the JFMIPSR-01-01,pg17           FFMIA         Mandatory        PV        Manage Benefits
                              amount of recurring payment, or                                                                             Manage Human Resources
                              capture the amount of the claimant's                                                                        Compensation and Reimbursements
                              recurring payment that has been                                                                             Separate or Terminate Human
                              determined externally, when                                                                                 Resources
                              processing an approved claim for                                                                            Sustain Human Resources
                              benefits such as retirement, disability,
                              death, survivor, and other claims.


Benefit_Claim_Processing_87   The benefit system must provide           JFMIPSR-01-01,pg17       FFMIA         Mandatory        PV        Manage Benefits
                              flexibility in maintaining pay rates. For                                                                   Manage Human Resources
                              example, use tables that are easily                                                                         Compensation and Reimbursements
                              maintained by the user.
Benefit_Claim_Processing_88   The benefit system must provide for        JFMIPSR-01-01,pg17,18   FFMIA         Mandatory        PV        Manage Benefits
                              adjusting the amount of payment when                                                                        Manage Human Resources
                              the claimant is receiving offsetting                                                                        Compensation and Reimbursements
                              monetary amounts. For example,
                              military retired pay is offset on a dollar
                              for dollar basis against veterans
                              compensation payments, and for
                              individuals under age 65, Social
                              Security benefits are offset at a
                              predetermined ratio for every dollar
                              earned by claimants above the
                              established threshold amount.


Benefit_Claim_Processing_89   The benefit system must identify         JFMIPSR-01-01,pg18        FFMIA         Mandatory        PV        Manage Benefits
                              whether the claimant retired under                                                                          Manage Human Resources
                              provisions of voluntary separation                                                                          Compensation and Reimbursements
                              incentive and capture the amount of                                                                         Separate or Terminate Human
                              the incentive, for Federal and                                                                              Resources
                              Uniformed Service retirement                                                                                Sustain Human Resources
                              systems.

    July 29, 2009                                                      Business Transformation Agency                                                  Page 36 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                    Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_9    The benefit system should allow the        JFMIPSR-01-01,pg15        FFMIA         Value Added      PV        Manage Benefits
                              user to update the status of pending
                              claims and other information.

Benefit_Claim_Processing_90   The benefit system must compute the JFMIPSR-01-01,pg18               FFMIA         Mandatory        PV        Manage Benefits
                              base amount of retirement pay by                                                                              Manage Human Resources
                              determining the "highest paid 36                                                                              Compensation and Reimbursements
                              months (or other number as required                                                                           Separate or Terminate Human
                              by law, regulation or statute) of paid                                                                        Resources
                              service, for Federal and Uniformed                                                                            Sustain Human Resources
                              Service retirement systems.


Benefit_Claim_Processing_91   The benefit system must determine          JFMIPSR-01-01,pg18        FFMIA         Mandatory        PV        Manage Benefits
                              the creditable years of service based                                                                         Manage Human Resources
                              on dates of employment or active                                                                              Compensation and Reimbursements
                              military service.                                                                                             Separate or Terminate Human
                                                                                                                                            Resources
                                                                                                                                            Sustain Human Resources


Benefit_Claim_Processing_92   The benefit system must provide          JFMIPSR-01-01,pg18          FFMIA         Mandatory        PV        Manage Benefits
                              features to calculate the claimant's                                                                          Sustain Human Resources
                              and/or related dependent's age based
                              on the birth date provided in an
                              application or other verified source for
                              subsequent use in determining
                              claimant eligibility.
Benefit_Claim_Processing_93   The benefit system must provide for    JFMIPSR-01-01,pg18            FFMIA         Mandatory        PV        Manage Benefits
                              user defined reasonableness/tolerable                                                                         Manage Human Resources
                              limit checks on the amounts of benefit                                                                        Compensation and Reimbursements
                              payments that are calculated by the
                              system.


Benefit_Claim_Processing_94   The benefit system must flag or            JFMIPSR-01-01,pg18        FFMIA         Mandatory        PV        Manage Benefits
                              suspend processing of a claim that                                                                            Manage Human Resources
                              fails reasonableness edits to facilitate                                                                      Compensation and Reimbursements
                              manual verification of the amount
                              computed.
Benefit_Claim_Processing_95   The benefit system must enable        JFMIPSR-01-01,pg18             FFMIA         Mandatory        PV        Manage Benefits
                              approved users to have the ability to                                                                         Manage Human Resources
                              resume the processing of a claim that                                                                         Compensation and Reimbursements
                              was suspended for failing a
                              reasonableness edit, and
                              subsequently verified as accurate.

    July 29, 2009                                                        Business Transformation Agency                                                  Page 37 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefit_Claim_Processing_96        The benefit system must allow a user JFMIPSR-01-01,pg18           FFMIA         Mandatory        PV        Manage Benefits
                                   to initiate the calculation of a                                                                           Manage Human Resources
                                   claimant's benefit amount, at any time,                                                                    Compensation and Reimbursements
                                   based on claimant data that exists
                                   when the request is made.
Benefit_Claim_Processing_97        The benefit system must have the    JFMIPSR-01-01,pg18            FFMIA         Mandatory        PV        Manage Benefits
                                   ability to record the amount of                                                                            Manage Human Resources
                                   manually computed benefit payments.                                                                        Compensation and Reimbursements

Benefit_Claim_Processing_98        The benefit system must provide for     JFMIPSR-01-01,pg18        FFMIA         Mandatory        PV        Manage Benefits
                                   automatic system initiated calculation                                                                     Manage Human Resources
                                   and or recalculation of benefit amount                                                                     Compensation and Reimbursements
                                   by claim type, based on a specific user
                                   defined event such as claim validation
                                   and approval, court order, claimant
                                   initiated withholding change, etc.


Benefit_Claim_Processing_99        The benefit system must provide         JFMIPSR-01-01,pg18        FFMIA         Mandatory        FV        Manage Benefits
                                   features to calculate and send                                                                   PV        Manage Human Resources
                                   overpayment information (date of                                                                           Compensation and Reimbursements
                                   occurrence, claimant name, and                                                                             Sustain Human Resources
                                   overpayment amount) to                                                                                     Update Receivable Amount
                                   Receivables/Collections subsidiary
                                   ledger.
Benefits_Archiving_And_Purging_1   The benefit system must support the     JFMIPSR-01-01,pg41        FFMIA         Mandatory        PV        Manage Benefits
                                   benefit archiving and purging process
                                   by providing an automated means for
                                   permanently storing electronic data.

Benefits_Archiving_And_Purging_2   The benefit system must support the JFMIPSR-01-01,pg41            FFMIA         Mandatory        PV        Manage Benefits
                                   benefit archiving and purging process
                                   by archiving transactions and related
                                   information needed for audit trails in a
                                   format accessible by audit software.




    July 29, 2009                                                          Business Transformation Agency                                                  Page 38 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Archiving_And_Purging_3    The benefit system must support the JFMIPSR-01-01,pg41             FFMIA         Mandatory        PV        Manage Benefits
                                    benefit archiving and purging process
                                    by providing the authorized system
                                    administrator the flexibility to
                                    determine whether records are to be
                                    archived or purged. Of those
                                    documents that meet the criteria the
                                    system must allow selective action.
                                    The system must include the capability
                                    to establish and maintain user defined
                                    archival criteria.


Benefits_Archiving_And_Purging_4    The benefit system must support the      JFMIPSR-01-01,pg41        FFMIA         Mandatory        PV        Manage Benefits
                                    benefit archiving and purging process
                                    by retaining system records in
                                    accordance with Federal regulations
                                    established by the National Archives
                                    and Records Administration (NARA),
                                    GAO, and others.


Benefits_Archiving_And_Purging_5    The benefit system must prevent the      JFMIPSR-01-01,pg41        FFMIA         Mandatory        PV        Manage Benefits
                                    purging of transactions prior to the
                                    proper period in accordance with
                                    regulations governing the retention of
                                    documents and transactions.


Benefits_Interface_Requirements_1   The benefit system should support the JFMIPSR-01-01,pg36           FFMIA         Value Added      FV        Manage Benefits
                                    benefit internal reporting process by                                                             PV        Perform Financial Reporting
                                    providing the capability for a two-way
                                    interface with the core system for
                                    purposes of funds control and funds
                                    availability verification.


Benefits_Interface_Requirements_2   The benefit system must support the JFMIPSR-01-01,pg37             FFMIA         Mandatory        FV        Manage Benefits
                                    benefit external interface function by                                                            PV        Perform Financial Reporting
                                    allowing interface with central agency
                                    financial systems such as Department
                                    of the Treasury FMS and IRS
                                    Systems, OMB, and OPM systems
                                    according to the standards established
                                    by these oversight and regulatory
                                    agencies.



    July 29, 2009                                                            Business Transformation Agency                                                    Page 39 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefits_Interface_Requirements_3   The benefit system should support the JFMIPSR-01-01,pg37          FFMIA        Value Added      PV        Manage Benefits
                                    benefit external interface function by                                                                    Sustain Human Resources
                                    receiving information from SSA
                                    records to verify applicant's name,
                                    SSN, and income information, when
                                    legally permitted.


Benefits_Interface_Requirements_4   The benefit system should support the JFMIPSR-01-01,pg37          FFMIA        Value Added      PV        Manage Benefits
                                    benefit external interface function by                                                                    Manage Human Resources
                                    providing features to verify applicant's                                                                  Compensation and Reimbursements
                                    income against Civil Service Annuity,                                                                     Sustain Human Resources
                                    Military Retirement, and IRS earnings
                                    records, when legally permitted.


Benefits_Interface_Requirements_5   The benefit system must allow an          JFMIPSR-01-01,pg37      FFMIA        Mandatory        FV        Manage Benefits
                                    interface with central agency financial                                                         PV        Manage Human Resources
                                    systems such as the capability to:                                                                        Compensation and Reimbursements
                                    a. receive and read the deposit                                                                           Validate Ready to Pay File Information
                                    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 file
                                    to Treasury, c. produce and transfer a
                                    file of changes to EFT payments
                                    previously forwarded to Treasury for
                                    release, d. produce and 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.




    July 29, 2009                                                         Business Transformation Agency                                                     Page 40 of 742
                                                       Defense Financial Management Improvement Guidance

           Rule Name                      Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Benefits_Payment_Warehousing_1   The benefit system must support the JFMIPSR-01-01,pg20       FFMIA         Mandatory        FV        Manage Benefits
                                 benefit payment warehousing process                                                         PV        Manage Human Resources
                                 by having the ability to determine                                                                    Compensation and Reimbursements
                                 whether the benefit payment is a non-                                                                 Manage Liabilities
                                 recurring payment.


Benefits_Payment_Warehousing_2   The benefit system must support the JFMIPSR-01-01,pg20       FFMIA         Mandatory        FV        Manage Benefits
                                 benefit payment warehousing process                                                         PV        Manage Human Resources
                                 by automatically determining the due                                                                  Compensation and Reimbursements
                                 date and amount of benefit payments.                                                                  Manage Liabilities

Benefits_Payment_Warehousing_3   The benefit system must support the JFMIPSR-01-01,pg20       FFMIA         Mandatory        FV        Manage Benefits
                                 benefit payment warehousing process                                                         PV        Manage Human Resources
                                 by reestablishing payables for voided                                                                 Compensation and Reimbursements
                                 checks, or EFTs that were not                                                                         Manage Liabilities
                                 successful and allowing for reversing
                                 the accounting transaction leading to
                                 the disbursement and reestablishment
                                 of a payable, as appropriate.



Benefits_Payment_Warehousing_4   The benefit system must support the JFMIPSR-01-01,pg20       FFMIA         Mandatory        FV        Manage Benefits
                                 benefit payment warehousing process                                                         PV        Manage Human Resources
                                 by allowing anticipated obligation or                                                                 Compensation and Reimbursements
                                 expenditure transactions so that                                                                      Manage Liabilities
                                 documents may be entered early,
                                 stored, and posted at the appropriate
                                 date. The benefit system must also
                                 subject these documents to edit and
                                 validation procedures prior to posting.
                                 If the anticipated obligation does not
                                 occur, the benefit system must permit
                                 the user to delete the transaction
                                 without posting it.




   July 29, 2009                                                    Business Transformation Agency                                                  Page 41 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must provide         JFMIPSR-01-01,pg37        FFMIA         Mandatory        PV        Manage Benefits
ntenance_1                         capabilities to select benefit claims                                                                      Sustain Human Resources
                                   based on agency program evaluation
                                   criteria (such as attainment of certain
                                   dollar thresholds - cumulative and per
                                   payment, excessive length of benefit
                                   payment life) for subsequent review.



Benefits_Quality_Assurance_And_Mai The benefit system should have the     JFMIPSR-01-01,pg38         FFMIA         Value Added      PV        Manage Benefits
ntenance_10                        ability to select benefit payment                                                                          Manage Human Resources
                                   calculations based on statistical                                                                          Compensation and Reimbursements
                                   sampling techniques for the purpose of
                                   verifying calculations.
Benefits_Quality_Assurance_And_Mai The benefit system should provide the JFMIPSR-01-01,pg38          FFMIA         Value Added      PV        Manage Benefits
ntenance_11                        ability to generate a random sample of
                                   claimants to periodically survey
                                   regarding their satisfaction with the
                                   agency's benefit payment claims
                                   process (from initial contact with
                                   agency to receipt of benefit payment).


Benefits_Quality_Assurance_And_Mai The benefit system should allow users JFMIPSR-01-01,pg38          FFMIA         Value Added      PV        Manage Benefits
ntenance_12                        to suspend payment to claimants,                                                                           Manage Human Resources
                                   when fraud is suspected, or death has                                                                      Compensation and Reimbursements
                                   been reported but not yet verified by
                                   an authoritative source (e.g., SSA).


Benefits_Quality_Assurance_And_Mai The benefit system must support the     JFMIPSR-01-01,pg29        FFMIA         Mandatory        FV        Generate Offsetting Receivable
ntenance_13                        benefit offset process by providing                                                              PV        Liability Pro Forma Entries
                                   ability to report overdue receivables                                                                      Manage Benefits
                                   with associated SSN or TIN data to                                                                         Manage Human Resources
                                   Treasury for possible offset.                                                                              Compensation and Reimbursements
                                                                                                                                              Perform Financial Reporting
                                                                                                                                              Sustain Human Resources


Benefits_Quality_Assurance_And_Mai The benefit system should allow users JFMIPSR-01-01,pg38          FFMIA         Value Added      PV        Manage Benefits
ntenance_14                        to cancel a previously recorded                                                                            Manage Human Resources
                                   suspected death on a claimant, and                                                                         Compensation and Reimbursements
                                   place the claimant back in a payment                                                                       Sustain Human Resources
                                   status if appropriate.




    July 29, 2009                                                          Business Transformation Agency                                                  Page 42 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg19       FFMIA         Mandatory        FV        Establish Customer Information
ntenance_15                        benefit payee information maintenance                                                       PV        Manage Benefits
                                   process by maintaining payee                                                                          Manage Human Resources
                                   information that includes data to                                                                     Compensation and Reimbursements
                                   support obligation, accounts payable,                                                                 Sustain Human Resources
                                   and disbursement processes.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg19       FFMIA         Mandatory        PV        Manage Benefits
ntenance_16                        benefit payee information maintenance                                                                 Manage Human Resources
                                   process by supporting payments made                                                                   Compensation and Reimbursements
                                   to parties that act as an agent for the                                                               Sustain Human Resources
                                   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.



Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg19       FFMIA         Mandatory        PV        Manage Benefits
ntenance_17                        benefit payee information maintenance                                                                 Manage Human Resources
                                   process by allowing the user to                                                                       Compensation and Reimbursements
                                   capture the current tax status, number                                                                Sustain Human Resources
                                   of exemptions, and other information
                                   requested on applicable IRS
                                   withholding forms (i.e., W-4P, W-4S,
                                   and W-4V).
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg19       FFMIA         Mandatory        PV        Manage Benefits
ntenance_18                        benefit payee information maintenance                                                                 Manage Human Resources
                                   process by maintaining detailed                                                                       Compensation and Reimbursements
                                   information for each payee to comply                                                                  Sustain Human Resources
                                   with IRS reporting requirements. In
                                   cases where payments are made to
                                   third parties who are serving in a
                                   fiduciary capacity, the benefit system
                                   must maintain 1099 information for the
                                   principal party rather than the agent.




    July 29, 2009                                                     Business Transformation Agency                                                  Page 43 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg19              FFMIA         Mandatory        FV        Manage Benefits
ntenance_19                        benefit payee information maintenance                                                              PV        Manage Human Resources
                                   process by providing the capability to                                                                       Compensation and Reimbursements
                                   automatically update payee records to                                                                        Process Funded Payroll and Benefits
                                   reflect automated clearinghouse                                                                              Information Civilian and Military
                                   (ACH) or electronic funds transfer                                                                           Sustain Human Resources
                                   (EFT) related changes.


Benefits_Quality_Assurance_And_Mai The benefit system must provide the       JFMIPSR-01-01,pg37        FFMIA         Mandatory        PV        Manage Benefits
ntenance_2                         ability to monitor and update a                                                                              Manage Human Resources
                                   claimant's master records to reflect                                                                         Compensation and Reimbursements
                                   changes in circumstances affecting a                                                                         Sustain Human Resources
                                   claimant's eligibility or the amount of
                                   payment.
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg19              FFMIA         Mandatory        PV        Manage Benefits
ntenance_20                        benefit payee information maintenance                                                                        Manage Human Resources
                                   process by providing search capability                                                                       Compensation and Reimbursements
                                   for payee information (e.g., payee                                                                           Sustain Human Resources
                                   name).
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg19              FFMIA         Mandatory        PV        Manage Benefits
ntenance_21                        benefit payee information maintenance                                                                        Manage Human Resources
                                   process by producing payee listings                                                                          Compensation and Reimbursements
                                   based on agency-defined criteria,                                                                            Sustain Human Resources
                                   (e.g., payee name and SSN.)


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg20              FFMIA         Mandatory        FV        Manage Benefits
ntenance_22                        benefit payee information maintenance                                                              PV        Manage Human Resources
                                   process by maintaining as part of the                                                                        Compensation and Reimbursements
                                   claimant's master record a complete                                                                          Process Funded Payroll and Benefits
                                   history, of all financial transactions                                                                       Information Civilian and Military
                                   executed for each payee receiving                                                                            Sustain Human Resources
                                   benefits under the claim holder's
                                   master record. This includes
                                   payments, and collections, waivers , or
                                   offsets resulting from overpayments.




    July 29, 2009                                                            Business Transformation Agency                                                   Page 44 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg20           FFMIA         Mandatory        FV        Manage Benefits
ntenance_23                        benefit payee information maintenance                                                           PV        Manage Human Resources
                                   process by making the financial                                                                           Compensation and Reimbursements
                                   transaction history data of the most                                                                      Process Funded Payroll and Benefits
                                   recent 18 months available for online                                                                     Information Civilian and Military
                                   query and review for all active                                                                           Sustain Human Resources
                                   "payees".


Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg20         FFMIA         Value Added      PV        Manage Benefits
ntenance_24                        benefit payee information maintenance                                                                     Manage Human Resources
                                   process by maintaining deposit                                                                            Compensation and Reimbursements
                                   account information on at least two
                                   financial institutions for a single payee.



Benefits_Quality_Assurance_And_Mai The benefit system must support the    JFMIPSR-01-01,pg21        FFMIA         Mandatory        FV        Manage Benefits
ntenance_25                        benefit funds availability editing                                                              PV        Process Funded Payroll and Benefits
                                   process by allowing for recording of                                                                      Information Civilian and Military
                                   funding transactions including
                                   recording internal allocations or
                                   allotments from within the agency.
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg21           FFMIA         Mandatory        FV        Establish Funds Control
ntenance_26                        benefit funds availability editing                                                              PV        Manage Benefits
                                   process by including adequate
                                   controls to prevent the recording of
                                   obligations or expenditure transactions
                                   that exceed available balances. The
                                   system must also support recording
                                   obligations or expenditures that
                                   exceed available balances based on
                                   proper management approval (i.e.,
                                   provide the capabilities and controls
                                   for authorized users to override funds
                                   availability edits).


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg21           FFMIA         Mandatory        FV        Establish Funds Control
ntenance_27                        benefit funds availability editing                                                              PV        Manage Benefits
                                   process by providing for designated                                                                       Verify Funds Availability
                                   authorities to establish and modify the
                                   system's response (either reject
                                   transaction or provide warning) to the
                                   failure of a funds availability edit.



    July 29, 2009                                                         Business Transformation Agency                                                     Page 45 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg21            FFMIA         Mandatory        FV        Manage Benefits
ntenance_28                        benefit funds availability editing                                                               PV        Process Funded Payroll and Benefits
                                   process by recording the financial                                                                         Information Civilian and Military
                                   impact of all transactions that affect
                                   the availability of funds, such as
                                   commitments, obligations,
                                   expenditures and the establishment of,
                                   and collections against recovery
                                   receivables.

Benefits_Quality_Assurance_And_Mai The benefit system must support the     JFMIPSR-01-01,pg21        FFMIA         Mandatory        FV        Manage Benefits
ntenance_29                        benefit funds availability editing                                                               PV        Process Funded Payroll and Benefits
                                   process by automatically updating all                                                                      Information Civilian and Military
                                   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.

Benefits_Quality_Assurance_And_Mai The benefit system must provide          JFMIPSR-01-01,pg37,38    FFMIA         Mandatory        PV        Manage Benefits
ntenance_3                         capabilities to capture claimant (or                                                                       Separate or Terminate Human
                                   relative) reported matters such as:                                                                        Resources
                                   - death                                                                                                    Sustain Human Resources
                                   - change in amount of
                                   earned/unearned income
                                   - change of residence
                                   - marriage, divorce, or separation
                                   - absence from the U.S.
                                   - change in disability condition
                                   - eligibility for other benefits
                                   - changes in net worth/resources of
                                   claimant
                                   - change in school attendance
                                   - change in composition of
                                   household
                                   - change in citizenship or alien status.




    July 29, 2009                                                          Business Transformation Agency                                                   Page 46 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the      JFMIPSR-01-01,pg21        FFMIA         Mandatory        FV        Manage Benefits
ntenance_30                        benefit funds availability editing                                                                PV        Process Funded Payroll and Benefits
                                   process by providing for designated                                                                         Information Civilian and Military
                                   authorities to establish and modifying
                                   the level of funds control using
                                   elements of the classification
                                   structure, including object class,
                                   program, organization, project, and
                                   fund.

Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg21           FFMIA         Value Added      FV        Manage Benefits
ntenance_31                        benefit funds availability editing                                                                PV        Process Funded Payroll and Benefits
                                   process by providing the ability to                                                                         Information Civilian and Military
                                   produce an on-line status of funds
                                   report down to the lowest level of the
                                   organizational structure. The report
                                   should include: amounts
                                   available/allotted, open commitments,
                                   open obligations, expenditures, and
                                   balance available.


Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg21,22        FFMIA         Value Added      FV        Manage Benefits
ntenance_32                        benefit commitment process by                                                                     PV        Process Funded Payroll and Benefits
                                   allowing commitment transactions to                                                                         Information Civilian and Military
                                   be entered on-line and from multiple
                                   locations.
Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg21,22        FFMIA         Value Added      FV        Manage Benefits
ntenance_33                        benefit commitment process by                                                                     PV        Process Funded Payroll and Benefits
                                   maintaining information related to each                                                                     Information Civilian and Military
                                   commitment transaction. At a
                                   minimum, the system should capture
                                   accounting classification elements,
                                   and estimated amounts.
Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg21,22        FFMIA         Value Added      FV        Manage Benefits
ntenance_34                        benefit commitment process by                                                                     PV        Process Funded Payroll and Benefits
                                   providing for modifications to                                                                              Information Civilian and Military
                                   commitment transactions, including
                                   ones that change the dollar amount or
                                   the accounting classification elements
                                   cited.




    July 29, 2009                                                           Business Transformation Agency                                                   Page 47 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg21,22    FFMIA        Value Added      FV        Manage Benefits
ntenance_35                        benefit commitment process by                                                                PV        Process Funded Payroll and Benefits
                                   allowing for commitment transactions                                                                   Information Civilian and Military
                                   to be future-dated, stored, and posted
                                   at the appropriate date.


Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg21,22    FFMIA        Value Added      FV        Manage Benefits
ntenance_36                        benefit commitment process by                                                                PV        Process Funded Payroll and Benefits
                                   closing open commitments under the                                                                     Information Civilian and Military
                                   following circumstances: (1) by the
                                   system upon issuance of an obligating
                                   document, (2) by an authorized user,
                                   and (3) as part of the year-end closing
                                   if the commitment is in an annual
                                   appropriation or in the last year of a
                                   multi-year appropriation.


Benefits_Quality_Assurance_And_Mai The benefit system should support the JFMIPSR-01-01,pg21,22    FFMIA        Value Added      FV        Manage Benefits
ntenance_37                        benefit commitment process by                                                                PV        Process Funded Payroll and Benefits
                                   providing the capability to support                                                                    Information Civilian and Military
                                   commitment accounting based on
                                   agency needs.
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg22         FFMIA        Mandatory        FV        Manage Benefits
ntenance_38                        benefit obligation and expenditure                                                           PV        Process Funded Payroll and Benefits
                                   activity by updating budgetary tables to                                                               Information Civilian and Military
                                   reflect obligations based on obligating
                                   documents and liquidate, at the user's
                                   request, the related commitments,
                                   either partially or fully.



Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg22         FFMIA        Mandatory        FV        Manage Benefits
ntenance_39                        benefit obligation and expenditure                                                           PV        Process Funded Payroll and Benefits
                                   activity by updating budgetary tables to                                                               Information Civilian and Military
                                   reflect obligations for which there is no
                                   related commitment.




    July 29, 2009                                                      Business Transformation Agency                                                   Page 48 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must provide for     JFMIPSR-01-01,pg38          FFMIA         Mandatory        PV        Manage Benefits
ntenance_4                         the recording of notes or comments by                                                                        Sustain Human Resources
                                   customer service representatives and
                                   associate with the claimant's master
                                   record, and maintain a history of notes
                                   taken.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg22              FFMIA         Mandatory        FV        Manage Benefits
ntenance_40                        benefit obligation and expenditure                                                                 PV        Manage Human Resources
                                   activity by maintaining information                                                                          Compensation and Reimbursements
                                   related to each obligation document,                                                                         Process Funded Payroll and Benefits
                                   including amendments. At a minimum,                                                                          Information Civilian and Military
                                   the system must capture the obligating                                                                       Separate or Terminate Human
                                   document number and type; and other                                                                          Resources
                                   identification, including benefit payee                                                                      Sustain Human Resources
                                   SSN or TIN, accounting classification
                                   elements as appropriate; referenced
                                   commitment (if applicable); and dollar
                                   amounts.




Benefits_Quality_Assurance_And_Mai The benefit system must support the       JFMIPSR-01-01,pg22        FFMIA         Mandatory        FV        Manage Benefits
ntenance_41                        benefit obligation and expenditure                                                                 PV        Manage Execution Fund Account
                                   activity by allowing obligation                                                                              Manage Human Resources
                                   documents to be entered on-line and                                                                          Compensation and Reimbursements
                                   from multiple locations.                                                                                     Separate or Terminate Human
                                                                                                                                                Resources


Benefits_Quality_Assurance_And_Mai The benefit system must support the       JFMIPSR-01-01,pg22        FFMIA         Mandatory        FV        Manage Benefits
ntenance_42                        benefit obligation and expenditure                                                                 PV        Manage Execution Fund Account
                                   activity by allowing authorized                                                                              Manage Human Resources
                                   modifications and cancellations of                                                                           Compensation and Reimbursements
                                   posted obligation documents.                                                                                 Separate or Terminate Human
                                                                                                                                                Resources


Benefits_Quality_Assurance_And_Mai The benefit system must support the       JFMIPSR-01-01,pg22        FFMIA         Mandatory        FV        Manage Benefits
ntenance_43                        benefit obligation and expenditure                                                                 PV        Manage Execution Fund Account
                                   activity by providing on-line access to                                                                      Manage Human Resources
                                   all unliquidated obligations by                                                                              Compensation and Reimbursements
                                   selection criteria, (e.g., document                                                                          Separate or Terminate Human
                                   number.)                                                                                                     Resources




    July 29, 2009                                                            Business Transformation Agency                                                   Page 49 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg22           FFMIA         Mandatory        FV        Establish Customer Information
ntenance_44                        benefit obligation and expenditure                                                              PV        Manage Benefits
                                   activity by maintaining an on-line                                                                        Manage General Ledger
                                   history file of closed-out documents for                                                                  Manage Human Resources
                                   a user-defined period of time.                                                                            Compensation and Reimbursements
                                                                                                                                             Separate or Terminate Human
                                                                                                                                             Resources
                                                                                                                                             Sustain Human Resources


Benefits_Quality_Assurance_And_Mai The benefit system must support the    JFMIPSR-01-01,pg22        FFMIA         Mandatory        FV        Manage Benefits
ntenance_45                        benefit obligation and expenditure                                                              PV        Manage Execution Fund Account
                                   activity by closing open obligating                                                                       Manage Human Resources
                                   documents to accommodate both of                                                                          Compensation and Reimbursements
                                   the following circumstances: (1)                                                                          Separate or Terminate Human
                                   automatically when reclassifying an                                                                       Resources
                                   unliquidated obligation to an
                                   expenditure, or (2) by an authorized
                                   user.

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg22           FFMIA         Mandatory        FV        Manage Benefits
ntenance_46                        benefit obligation and expenditure                                                              PV        Manage Execution Fund Account
                                   activity by allowing multiple                                                                             Manage Human Resources
                                   commitments to be combined into one                                                                       Compensation and Reimbursements
                                   obligation or expenditure document                                                                        Separate or Terminate Human
                                   and one commitment document to be                                                                         Resources
                                   split into various obligating or
                                   expenditure documents.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg25           FFMIA         Mandatory        PV        Manage Benefits
ntenance_47                        benefit payment confirmation and                                                                          Manage Human Resources
                                   follow-up process by maintaining                                                                          Compensation and Reimbursements
                                   history of every payment by the                                                                           Separate or Terminate Human
                                   benefits system, including authorizing                                                                    Resources
                                   document number, payment schedule                                                                         Sustain Human Resources
                                   number, payment date, payment
                                   address, and TAFS charged.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg25           FFMIA         Mandatory        PV        Manage Benefits
ntenance_48                        benefit payment confirmation and                                                                          Manage Human Resources
                                   follow-up process by providing on-line                                                                    Compensation and Reimbursements
                                   access to claimant and payment                                                                            Sustain Human Resources
                                   information.




    July 29, 2009                                                         Business Transformation Agency                                                  Page 50 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg25            FFMIA         Mandatory        PV        Manage Benefits
ntenance_49                        benefit payment confirmation and                                                                           Manage Human Resources
                                   follow-up process by providing on-line                                                                     Compensation and Reimbursements
                                   access to open documents based on                                                                          Sustain Human Resources
                                   agency selection criteria (e.g., SSN).


Benefits_Quality_Assurance_And_Mai The benefit system must provide         JFMIPSR-01-01,pg38        FFMIA         Mandatory        PV        Manage Benefits
ntenance_5                         capabilities to record the method used                                                                     Separate or Terminate Human
                                   to independently verify the death of a                                                                     Resources
                                   claimant before terminating benefits                                                                       Sustain Human Resources
                                   (phone contact, signature verification,
                                   or personal contact with next of kin).


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg25            FFMIA         Mandatory        PV        Manage Benefits
ntenance_50                        benefit payment confirmation and                                                                           Manage Human Resources
                                   follow-up process by producing IRS                                                                         Compensation and Reimbursements
                                   1099s in IRS acceptable form (hard                                                                         Sustain Human Resources
                                   copy or magnetic tape) when required
                                   by IRS regulations (e.g.,
                                   miscellaneous payments to individuals
                                   over $600).


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg27            FFMIA         Mandatory        PV        Manage Benefits
ntenance_51                        benefit recovery receivable servicing                                                                      Manage Human Resources
                                   process by maintaining detailed                                                                            Compensation and Reimbursements
                                   information by account (i.e., individual)                                                                  Sustain Human Resources
                                   sufficient to provide audit trails and to
                                   support billing and research activities.


Benefits_Quality_Assurance_And_Mai The benefit system must support the     JFMIPSR-01-01,pg27        FFMIA         Mandatory        FV        Manage Benefits
ntenance_52                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by providing on-line query                                                                         Compensation and Reimbursements
                                   capability to receivable and account                                                                       Record and Manage Receivable
                                   information.                                                                                               Sustain Human Resources


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg27            FFMIA         Mandatory        FV        Manage Benefits
ntenance_53                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by providing information, on a                                                                     Compensation and Reimbursements
                                   summary basis and on individual                                                                            Record and Manage Receivable
                                   receivables, on the age of receivables                                                                     Sustain Human Resources
                                   to allow for management and
                                   prioritization of collection activities.



    July 29, 2009                                                          Business Transformation Agency                                                  Page 51 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg27            FFMIA         Mandatory        FV        Manage Benefits
ntenance_54                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by maintaining data for                                                                            Compensation and Reimbursements
                                   receivables referred to other Federal                                                                      Record and Manage Receivable
                                   agencies and or outside organizations
                                   for collections.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg27            FFMIA         Mandatory        FV        Manage Benefits
ntenance_55                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by automatically initiating                                                                        Compensation and Reimbursements
                                   transactions to record the write-off of                                                                    Record and Manage Receivable
                                   delinquent or uncollectible receivables
                                   (including interest, penalties, and
                                   administrative charges) based on user
                                   defined criteria, and maintaining data
                                   to monitor closed accounts.



Benefits_Quality_Assurance_And_Mai The benefit system must support the     JFMIPSR-01-01,pg27        FFMIA         Mandatory        FV        Manage Benefits
ntenance_56                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by producing dunning                                                                               Compensation and Reimbursements
                                   (collection) letters for overdue                                                                           Record and Manage Receivable
                                   receivables in accordance with
                                   Treasury requirements and existing
                                   legislation.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg27            FFMIA         Mandatory        FV        Manage Benefits
ntenance_57                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by providing authorized users                                                                      Compensation and Reimbursements
                                   with the ability to customize the                                                                          Record and Manage Receivable
                                   dunning process parameters and
                                   dunning letter text.
Benefits_Quality_Assurance_And_Mai The benefit system must support the     JFMIPSR-01-01,pg27        FFMIA         Mandatory        FV        Manage Benefits
ntenance_58                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by maintaining information                                                                         Compensation and Reimbursements
                                   needed to support reporting required                                                                       Record and Manage Receivable
                                   by IRS.




    July 29, 2009                                                          Business Transformation Agency                                                  Page 52 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg28            FFMIA         Mandatory        FV        Manage Benefits
ntenance_59                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by maintaining a history of                                                                        Compensation and Reimbursements
                                   billings and receipts for each                                                                             Record and Manage Receivable
                                   receivable and account in accordance
                                   with agency requirements.


Benefits_Quality_Assurance_And_Mai The benefit system must provide the      JFMIPSR-01-01,pg38       FFMIA         Mandatory        PV        Manage Benefits
ntenance_6                         ability to maintain a schedule of                                                                          Sustain Human Resources
                                   continuing disability reviews (when
                                   applicable) at the individual claim
                                   holder level, and maintain the status of
                                   the schedule within the claimant's
                                   master record.
Benefits_Quality_Assurance_And_Mai The benefit system must support the     JFMIPSR-01-01,pg28        FFMIA         Mandatory        FV        Manage Benefits
ntenance_60                        benefit recovery receivable servicing                                                            PV        Manage Human Resources
                                   process by providing for re-                                                                               Compensation and Reimbursements
                                   establishment of a receivable for                                                                          Record and Manage Receivable
                                   checks returned due to insufficient
                                   funds.
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg28            FFMIA         Mandatory        FV        Manage Benefits
ntenance_61                        benefit collection process by providing                                                          PV        Manage Human Resources
                                   the capability to display all active                                                                       Compensation and Reimbursements
                                   receivable accounts of record for the                                                                      Record and Manage Receivable
                                   relative to the claimant in connection                                                                     Sustain Human Resources
                                   with recording deposits if a claimant's
                                   master record is located.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg28            FFMIA         Mandatory        FV        Manage Benefits
ntenance_62                        benefit collection process by capturing                                                          PV        Manage Human Resources
                                   whether the receivable has been                                                                            Compensation and Reimbursements
                                   petitioned and or discharged in                                                                            Record and Manage Receivable
                                   connection with bankruptcy
                                   proceedings to facilitate compliance
                                   collection restrictions pertaining to
                                   such debts.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg31            FFMIA         Mandatory        FV        Manage Benefits
ntenance_63                        benefit account definition process by                                                            PV        Post General Ledger Transactions
                                   providing the capability to create
                                   additional sub-accounts to the general
                                   ledger for agency specific tracking and
                                   control.

    July 29, 2009                                                          Business Transformation Agency                                                   Page 53 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg31           FFMIA         Mandatory        FV        Manage Benefits
ntenance_64                        benefit transaction definition and                                                              PV        Post General Ledger Transactions
                                   processing activities by using standard
                                   transactions to record accounting
                                   events and to control the related
                                   updating of other information
                                   maintained in the system, such as
                                   values in tables (e.g., available
                                   funding).

Benefits_Quality_Assurance_And_Mai The benefit system must support the    JFMIPSR-01-01,pg31        FFMIA         Mandatory        FV        Manage Benefits
ntenance_65                        benefit transaction definition and                                                              PV        Validate Ready to Pay File Information
                                   processing activities by performing
                                   integrity checks on batches received
                                   via interfaces.
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg32           FFMIA         Mandatory        FV        Manage Benefits
ntenance_66                        benefit transaction definition and                                                              PV        Validate Ready to Pay File Information
                                   processing activities by providing
                                   control over the correction and
                                   reprocessing of all erroneous
                                   transactions through the use of error
                                   file(s) and or suspense accounts.
                                   Erroneous transactions must be
                                   maintained and tracked until either
                                   corrected or posted or deleted at the
                                   specific request of an authorized user.


Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg32           FFMIA         Mandatory        FV        Manage Benefits
ntenance_67                        benefit transaction definition and                                                              PV        Validate Ready to Pay File Information
                                   processing activities by supporting
                                   management controls to ensure that
                                   transactions are processed in
                                   accordance with Government and
                                   agency-prescribed standards and
                                   procedures, the integrity of data in the
                                   system is maintained, and access is
                                   restricted to authorized users.




    July 29, 2009                                                         Business Transformation Agency                                                    Page 54 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg32             FFMIA         Mandatory        FV        Manage Benefits
ntenance_68                        benefit transaction definition and                                                                PV        Validate Ready to Pay File Information
                                   processing activities by providing
                                   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.

Benefits_Quality_Assurance_And_Mai The benefit system must support the      JFMIPSR-01-01,pg32        FFMIA         Mandatory        FV        Manage Benefits
ntenance_69                        benefit transaction definition and                                                                PV        Validate Ready to Pay File Information
                                   processing activities by providing
                                   controls to prevent the creation of
                                   duplicate transactions.
Benefits_Quality_Assurance_And_Mai The benefit system must provide     JFMIPSR-01-01,pg38             FFMIA         Mandatory        PV        Manage Benefits
ntenance_7                         capabilities to track the status of                                                                         Sustain Human Resources
                                   appeal proceedings when a change is
                                   made affecting a current claimant's
                                   level of benefits.
Benefits_Quality_Assurance_And_Mai The benefit system must support the      JFMIPSR-01-01,pg32,33     FFMIA         Mandatory        FV        Manage Benefits
ntenance_70                        benefit audit trails process by                                                                   PV        Post to General Ledger
                                   providing audit trails to trace
                                   transactions from source documents,
                                   original input, other systems, system-
                                   generated transactions, and internal
                                   assignment transactions through the
                                   system and providing transaction
                                   details to support account balances.



Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg32,33          FFMIA         Mandatory        FV        Manage Benefits
ntenance_71                        benefit audit trails process by                                                                   PV        Post to General Ledger
                                   providing audit trails to trace source
                                   documents and transactions through
                                   successive levels of summarization to
                                   the financial statements and the
                                   reverse.




    July 29, 2009                                                           Business Transformation Agency                                                    Page 55 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Quality_Assurance_And_Mai The benefit system must support the       JFMIPSR-01-01,pg32,33     FFMIA         Mandatory        FV        Manage Benefits
ntenance_72                        benefit audit trails process by                                                                    PV        Post to General Ledger
                                   providing audit trails to identify
                                   changes made to system parameters
                                   and tables that would affect the
                                   processing or reprocessing of any
                                   financial transactions.


Benefits_Quality_Assurance_And_Mai The benefit system must support the       JFMIPSR-01-01,pg32,33     FFMIA         Mandatory        FV        Manage Benefits
ntenance_73                        benefit audit trails process by                                                                    PV        Post to General Ledger
                                   providing audit trails that identify
                                   document input, change, approval,
                                   and deletions by originator.
Benefits_Quality_Assurance_And_Mai The benefit system must support the JFMIPSR-01-01,pg32,33           FFMIA         Mandatory        FV        Manage Benefits
ntenance_74                        benefit audit trails process by                                                                    PV        Post to General Ledger
                                   providing the capability to record the                                                                       Sustain Human Resources
                                   user ID, date, and time updated for
                                   each transaction affecting the general
                                   and subsidiary ledger accounts.


Benefits_Quality_Assurance_And_Mai The benefit system must provide for       JFMIPSR-01-01,pg38        FFMIA         Mandatory        PV        Manage Benefits
ntenance_75                        back up and recovery of the system
                                   per relevant OMB Circulars.

Benefits_Quality_Assurance_And_Mai The benefit system must maintain the JFMIPSR-01-01,pg46             FFMIA         Mandatory        FV        Manage Benefits
ntenance_76                        present interest rate per the                                                                      PV        Review Outstanding Interest Balance
                                   Department of the Treasury.
Benefits_Quality_Assurance_And_Mai The benefit system should maintain        JFMIPSR-01-01,pg47        FFMIA         Value Added      FV        Calculate Payment Adjustments
ntenance_77                        the daily exchange rate for relevant                                                               PV        Manage Benefits
                                   currencies.
Benefits_Quality_Assurance_And_Mai The benefit system must provide           JFMIPSR-01-01,pg38        FFMIA         Mandatory        PV        Manage Benefits
ntenance_8                         features to record termination of                                                                            Manage Human Resources
                                   benefit payment including:                                                                                   Compensation and Reimbursements
                                   - event/reason for termination (e.g.,                                                                        Separate or Terminate Human
                                   death, increase in income)                                                                                   Resources
                                   - date of event (thus effective date of                                                                      Sustain Human Resources
                                   benefit cessation)
Benefits_Quality_Assurance_And_Mai The benefit system should provide     JFMIPSR-01-01,pg38            FFMIA         Value Added      PV        Manage Benefits
ntenance_9                         features to determine if benefits are                                                                        Sustain Human Resources
                                   commensurate with claimant's gender.




    July 29, 2009                                                            Business Transformation Agency                                                   Page 56 of 742
                                                Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_1    The benefit system must provide      JFMIPSR-01-01,pg35         FFMIA         Mandatory        PV        Manage Benefits
                        features to compute and maintain                                                                         Manage Human Resources
                        performance trends such as:                                                                              Compensation and Reimbursements
                        - number and dollar value of benefit
                        payments made,
                        - average benefit payment,
                        - benefit payments made by operating
                        levels and geographic region.


Benefits_Reporting_10   The benefit system must support the JFMIPSR-01-01,pg23          FFMIA         Mandatory        FV        Establish Funds Control
                        benefit funds analysis process by                                                              PV        Manage Benefits
                        sorting and providing on-line access to
                        both summary level and detailed
                        information, based on the defined level
                        of funds control for those transactions
                        that represent obligations and
                        expenditures.
Benefits_Reporting_11   The benefit system must support the JFMIPSR-01-01,pg23          FFMIA         Mandatory        FV        Establish Funds Control
                        benefit funds analysis process by                                                              PV        Manage Benefits
                        providing 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.


Benefits_Reporting_12   The benefit system must support the   JFMIPSR-01-01,pg23        FFMIA         Mandatory        FV        Establish Funds Control
                        benefit funds analysis process by                                                              PV        Manage Benefits
                        tracking the use of funds against
                        operating or financial plans.

Benefits_Reporting_13   The benefit system must support the JFMIPSR-01-01,pg27          FFMIA         Mandatory        FV        Manage Benefits
                        benefit recovery receivable servicing                                                          PV        Manage Human Resources
                        process by identifying and reporting                                                                     Compensation and Reimbursements
                        receivables that meet predetermined                                                                      Record and Manage Receivable
                        criteria for bad debt provisions or write-
                        off.




    July 29, 2009                                             Business Transformation Agency                                                    Page 57 of 742
                                              Defense Financial Management Improvement Guidance

            Rule Name            Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_14   The benefit system must support the JFMIPSR-01-01,pg27       FFMIA         Mandatory        FV        Manage Benefits
                        benefit recovery receivable servicing                                                       PV        Manage Human Resources
                        process by providing information to                                                                   Compensation and Reimbursements
                        allow either manual or automated                                                                      Perform Financial Reporting
                        reporting of delinquent accounts to
                        commercial credit bureaus and referral
                        to collection agencies or other
                        appropriate governmental
                        organizations.


Benefits_Reporting_15   The benefit system must support the JFMIPSR-01-01,pg32       FFMIA         Mandatory        FV        Generate General Ledger
                        benefit transaction definition and                                                          PV        Transactions
                        processing activities by posting to the                                                               Manage Benefits
                        current and prior accounting months
                        concurrently until the prior month
                        closing; maintain and provide on-line
                        queries and reports on balances
                        separately for the current and prior
                        months. At a minimum, balances must
                        be maintained on-line for both the
                        current and prior months until prior
                        month closing.


Benefits_Reporting_16   The benefit system must support the JFMIPSR-01-01,pg33       FFMIA         Mandatory        FV        Manage Benefits
                        benefit external reporting process by                                                       PV        Perform Financial Reporting
                        maintaining accounting data to support
                        reporting in accordance with
                        accounting standards pronounced by
                        FASAB, and with other reporting
                        requirements issued by the Director of
                        OMB and the Secretary of the
                        Treasury.


Benefits_Reporting_17   The benefit system must support the JFMIPSR-01-01,pg33       FFMIA         Mandatory        FV        Manage Benefits
                        benefit external reporting process by                                                       PV        Perform Financial Reporting
                        providing summarized data
                        electronically to systems used by the
                        agency for decision support and
                        provide for the preparation of external
                        reports such as those required by the
                        Department of the Treasury and OMB.




    July 29, 2009                                          Business Transformation Agency                                                    Page 58 of 742
                                               Defense Financial Management Improvement Guidance

            Rule Name            Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_18   The benefit system must support the JFMIPSR-01-01,pg34         FFMIA        Mandatory        FV        Manage Benefits
                        benefit external reporting process by                                                        PV        Perform Financial Reporting
                        reporting events and transactions
                        according to the accounting
                        classification elements established
                        and within a given accounting period
                        including providing the ability to
                        automatically assign costs by a major
                        program to facilitate preparation of the
                        Statement of Net Costs in accordance
                        with OMB's current Bulletin on "Form
                        and Content of Agency Financial
                        Statements.


Benefits_Reporting_19   The benefit system must support the JFMIPSR-01-01,pg34         FFMIA        Mandatory        FV        Manage Benefits
                        benefit external reporting process by                                                        PV        Perform Financial Reporting
                        maintaining the information required
                        for program performance, financial
                        performance, and financial
                        management performance measures
                        needed for budgeting, program
                        management, and financial statement
                        presentation.


Benefits_Reporting_2    The benefit system must provide       JFMIPSR-01-01,pg35       FFMIA        Mandatory        PV        Manage Benefits
                        features to compute and maintain
                        efficiency measures to help determine
                        the effectiveness of use of agency
                        resources (at the local level and the
                        national level) such as:
                        - number of applications processed
                        - number of awards
                        - number of denials



Benefits_Reporting_20   The benefit system must support the JFMIPSR-01-01,pg34         FFMIA        Mandatory        FV        Manage Benefits
                        benefit external reporting process by                                                        PV        Perform Financial Reporting
                        providing the capability to produce all
                        relevant reports, statements, or returns
                        required by the IRS, including
                        producing year-end 1099 statements.




    July 29, 2009                                           Business Transformation Agency                                                    Page 59 of 742
                                                 Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_21   The benefit system must support the     JFMIPSR-01-01,pg34        FFMIA         Mandatory        PV        Manage Benefits
                        benefit external reporting process by
                        allowing a user to request a reissued
                        tax statement for current or previous
                        year.
Benefits_Reporting_22   The benefit system should support the JFMIPSR-01-01,pg34          FFMIA         Value Added      PV        Manage Benefits
                        benefit external reporting process by
                        providing for an automated
                        methodology of data manipulation and
                        data exportation.
Benefits_Reporting_23   The benefit system should support the JFMIPSR-01-01,pg34          FFMIA         Value Added      FV        Convert United States Dollar
                        benefit external reporting process by                                                            PV        Equivalent to Foreign Equivalent
                        providing for automatic translation of                                                                     Manage Benefits
                        foreign currency payments based on                                                                         Manage Human Resources
                        the exchange rate specified by the                                                                         Compensation and Reimbursements
                        user.                                                                                                      Perform Financial Reporting


Benefits_Reporting_24   The benefit system should support the JFMIPSR-01-01,pg34          FFMIA         Value Added      PV        Manage Benefits
                        benefit external reporting process by                                                                      Manage Human Resources
                        allowing a user to request a reissued                                                                      Compensation and Reimbursements
                        tax statement for previous 3 prior
                        years.
Benefits_Reporting_25   The benefit system must support the JFMIPSR-01-01,pg34            FFMIA         Mandatory        PV        Manage Benefits
                        benefit internal reporting process by
                        providing for the production of
                        formatted reports. The system must
                        allow for the reformatting of reports to
                        present different sorts of information,
                        the presentation of only specific
                        information in the format selected, the
                        summarization of data, and the
                        modification of report formats to tailor
                        the reports to the specific
                        requirements of the user.




    July 29, 2009                                               Business Transformation Agency                                                  Page 60 of 742
                                               Defense Financial Management Improvement Guidance

            Rule Name            Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_26   The benefit system must support the JFMIPSR-01-01,pg34         FFMIA        Mandatory        FV        Manage Benefits
                        benefit internal reporting process by                                                        PV        Perform Financial Reporting
                        providing for program cost accounting
                        data to support reporting requirements
                        specified in OMB's "Form and Content
                        of Agency Financial Statements," and
                        the decision-making process in
                        managing agency programs. This will
                        include:
                        • cost reports to be utilized in the
                        analysis of programmatic activities;
                        • schedules and operating statements
                        based on the accounting classification
                        elements and agency criteria;
                        • meaningful cost information needed
                        to support performance measures;
                        and
                        • ability to transfer cost information
                        directly to and from other systems.




Benefits_Reporting_27   The benefit system should support the JFMIPSR-01-01,pg35       FFMIA        Value Added      FV        Capture Cost Information
                        benefit internal reporting process by                                                        PV        Manage Benefits
                        providing cost information for
                        comparison to other program data to
                        determine compliance with planned
                        budgeted activities.


Benefits_Reporting_28   The benefit system should support the JFMIPSR-01-01,pg35       FFMIA        Value Added      FV        Manage Benefits
                        benefit internal reporting process by                                                        PV        Perform Financial Reporting
                        supporting the use of historical data to
                        conduct variance analysis.




    July 29, 2009                                           Business Transformation Agency                                                    Page 61 of 742
                                               Defense Financial Management Improvement Guidance

            Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_29   The benefit system must support the JFMIPSR-01-01,pg36          FFMIA        Mandatory        FV        Manage Benefits
                        benefit internal reporting process by                                                         PV        Perform Financial Reporting
                        providing the capability to interface
                        with the agency core accounting
                        system and recording the accounting
                        impact of all financial activity at the
                        U.S. SGL level, on a daily basis to
                        support consolidated financial
                        reporting if an agency's financial
                        management system architecture is
                        configured so that the major functions
                        described herein are performed
                        entirely by the benefit module.


Benefits_Reporting_3    The benefit system must provide        JFMIPSR-01-01,pg35       FFMIA        Mandatory        PV        Manage Benefits
                        features to compute the length of time                                                                  Sustain Human Resources
                        claimants have received benefits
                        (average number of months and years,
                        and report(s) showing the number of
                        individuals receiving benefits for by
                        duration (e.g., 1-5 years, 6-10 years)
                        for the entire claimant population.


Benefits_Reporting_30   The benefit system must support the JFMIPSR-01-01,pg36          FFMIA        Mandatory        FV        Manage Benefits
                        benefit internal reporting process by                                                         PV        Perform Financial Reporting
                        providing standard input record
                        format(s) for interface of transactions
                        from other systems to the benefits
                        system and subjecting all transactions
                        from interfacing systems to the
                        benefits financial system edits,
                        validations, and error correction
                        procedures. Erroneous transactions
                        must be maintained and tracked until
                        corrected, posted, or deleted by an
                        authorized user.




    July 29, 2009                                           Business Transformation Agency                                                     Page 62 of 742
                                                   Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_31   The benefit system must support the JFMIPSR-01-01,pg36               FFMIA         Mandatory        FV        Manage Benefits
                        benefit internal reporting process by                                                               PV        Manage Human Resources
                        providing the capability to interface                                                                         Compensation and Reimbursements
                        with agency's core accounting system                                                                          Perform Financial Reporting
                        to automatically update detailed                                                                              Sustain Human Resources
                        claimant related information (e.g.
                        individual payable and receivable
                        records) that is maintained in the core
                        system when a major benefit system
                        function(s) such as payment
                        administration or recovery receivable
                        management is performed by the core
                        system.


Benefits_Reporting_32   The benefit system must support the        JFMIPSR-01-01,pg36        FFMIA         Mandatory        FV        Manage Benefits
                        benefit internal reporting process by                                                               PV        Perform Financial Reporting
                        providing the capability to interface to
                        the agency's cost accounting system.

Benefits_Reporting_33   The benefit system must support the JFMIPSR-01-01,pg39,40            FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by allowing for the information
                        contained in the system to be queried
                        and present detailed data as
                        requested. This will include user-
                        defined criteria to access data for open
                        or closed accounting periods.


Benefits_Reporting_34   The benefit system must support the        JFMIPSR-01-01,pg39,40     FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by providing users with access to on-
                        line guidance or help for performing
                        system functions.
Benefits_Reporting_35   The benefit system must support the JFMIPSR-01-01,pg39,40            FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by displaying a message indicating the
                        transaction cannot be completed and
                        further research is required if a
                        claimant's or claim holder's record is
                        not located via query.




    July 29, 2009                                                  Business Transformation Agency                                                    Page 63 of 742
                                                  Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_36   The benefit system must support the       JFMIPSR-01-01,pg39,40     FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by presenting information resulting
                        from system queries in a formatted
                        fashion to facilitate the understanding
                        of the information by non-technical
                        users, and unformatted for more
                        technically proficient users.


Benefits_Reporting_37   The benefit system must support the       JFMIPSR-01-01,pg39,40     FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process                                                                        Manage Human Resources
                        by providing the capability to access                                                                        Compensation and Reimbursements
                        historical data records that are                                                                             Sustain Human Resources
                        removed from on-line viewing,
                        including items such as individual
                        benefit payments, receivable, and
                        collection data.
Benefits_Reporting_38   The benefit system must support the JFMIPSR-01-01,pg39,40           FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by allowing users to design extract
                        files for their specific requirements,
                        and perform table look-ups and
                        expansion of codes when needed to
                        clarify the information contained within
                        the results of system queries or
                        reports.


Benefits_Reporting_39   The benefit system must support the       JFMIPSR-01-01,pg39,40     FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by providing features to facilitate
                        verification (i.e., matching programs)
                        using information extracted (see
                        above) from the benefit system for
                        comparison against benefit programs
                        administered by other agencies when
                        legally permitted.




    July 29, 2009                                                 Business Transformation Agency                                                  Page 64 of 742
                                                 Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_4    The benefit system should provide     JFMIPSR-01-01,pg35          FFMIA         Value Added      PV        Manage Benefits
                        features to automatically compute and
                        maintain efficiency measures to help
                        determine the effectiveness of use of
                        agency resources (at the local level
                        and the national level) such as:
                        - administrative cost per application
                        approved, and
                        -time required to process a claim
                        application.


Benefits_Reporting_40   The benefit system must support the JFMIPSR-01-01,pg39,40         FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by facilitating 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.


Benefits_Reporting_41   The benefit system must support the     JFMIPSR-01-01,pg39,40     FFMIA         Mandatory        PV        Manage Benefits
                        access to benefit information process
                        by providing for easy access to
                        historical files for comparative,
                        analytical, and trend information.


Benefits_Reporting_42   The benefit system should support the JFMIPSR-01-01,pg40          FFMIA         Value Added      PV        Manage Benefits
                        access to benefit information process
                        by providing for self-service claimant
                        initiated Web browser requests
                        pertaining to account specific matters.


Benefits_Reporting_5    The benefit system must provide for    JFMIPSR-01-01,pg35,36      FFMIA         Mandatory        PV        Manage Benefits
                        issuing standard notices for a variety                                                                     Manage Human Resources
                        of user defined events. For example,                                                                       Compensation and Reimbursements
                        the benefit system must provide
                        capabilities to notify claimant of
                        decisions affecting payment amount or
                        cessation of payments.




    July 29, 2009                                               Business Transformation Agency                                                  Page 65 of 742
                                                                   Defense Financial Management Improvement Guidance

             Rule Name                             Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Reporting_6                    The benefit system must allow the         JFMIPSR-01-01,pg35,36     FFMIA         Mandatory        PV        Manage Benefits
                                        user to add custom text for each
                                        standard correspondence type.
Benefits_Reporting_7                    The benefit system must allow user to JFMIPSR-01-01,pg35,36         FFMIA         Mandatory        PV        Manage Benefits
                                        record that the U.S. Postal Service has
                                        returned correspondence as
                                        undeliverable.
Benefits_Reporting_8                    The benefit system must have the         JFMIPSR-01-01,pg35,36      FFMIA         Mandatory        PV        Manage Benefits
                                        ability to capture or record the date on                                                                     Sustain Human Resources
                                        which a request for information is
                                        received from a claimant or an
                                        authorized representative, relative to
                                        an appeals case.
Benefits_Reporting_9                    The benefit system must support the JFMIPSR-01-01,pg23              FFMIA         Mandatory        FV        Manage Benefits
                                        benefit funds analysis process by                                                                  PV        Manage General Ledger
                                        maintaining current information on
                                        obligations according to the
                                        classification elements established by
                                        the agency, on a fund by fund basis.


Benefits_Security_Internal_Controls_1 The benefit system must adhere to the JFMIPSR-01-01,pg38              FFMIA         Mandatory        PV        Manage Benefits
                                      applicable final "Electronic and
                                      Information Technology Accessibility
                                      Standards" issued by the Architectural
                                      and Transportation Barriers
                                      Compliance Board, which address
                                      technical and functional performance
                                      criteria necessary for such technology
                                      to comply with section 508 of the
                                      Rehabilitation Act Amendments of
                                      1998.



Benefits_Security_Internal_Controls_2 The benefit system must support the         JFMIPSR-01-01,pg39        FFMIA         Mandatory        PV        Manage Benefits
                                      benefit security and internal controls
                                      activities by providing flexible security
                                      facilities to control user access at
                                      varying degrees including: overall
                                      system access, capability to perform
                                      specific functions (inquiry, update),
                                      access to certain functionality.




    July 29, 2009                                                                 Business Transformation Agency                                                  Page 66 of 742
                                                                   Defense Financial Management Improvement Guidance

              Rule Name                            Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Security_Internal_Controls_3 The benefit system must support the JFMIPSR-01-01,pg39                FFMIA         Mandatory        PV        Manage Benefits
                                      benefit security and internal controls                                                                         Sustain Human Resources
                                      activities by providing the capability to
                                      define access to specific functions by
                                      named user, class of user, and
                                      position.
Benefits_Security_Internal_Controls_4 The benefit system must support the         JFMIPSR-01-01,pg39        FFMIA         Mandatory        PV        Manage Benefits
                                      benefit security and internal controls
                                      activities by providing for multiple
                                      levels of approvals based on user-
                                      defined criteria including dollar limits,
                                      type of document processed, etc.


Benefits_Security_Internal_Controls_5 The benefit system must support the JFMIPSR-01-01,pg39                FFMIA         Mandatory        FV        Manage Benefits
                                      benefit security and internal controls                                                               PV        Manage General Ledger
                                      activities by providing the capability to
                                      perform reconciliation routines for
                                      internal participant accounts, ledgers,
                                      and funds, and to identify unsuccessful
                                      reconciliations via error log or error
                                      report.


Benefits_Security_Internal_Controls_6 The benefit system must support the JFMIPSR-01-01,pg39                FFMIA         Mandatory        PV        Manage Benefits
                                      benefit security and internal controls                                                                         Sustain Human Resources
                                      activities by establishing the
                                      appropriate administrative, technical
                                      and physical safeguards to ensure the
                                      security and confidentiality of records
                                      and to protect against anticipated
                                      threats or hazards to their security or
                                      integrity which could result in
                                      substantial harm, embarrassment,
                                      inconvenience, or unfairness to any
                                      individual on whom information is
                                      maintained.


Benefits_Security_Internal_Controls_7 The benefit system must support the JFMIPSR-01-01,pg39                FFMIA         Mandatory        PV        Manage Benefits
                                      benefit security and internal controls                                                                         Sustain Human Resources
                                      activities by providing a mechanism to
                                      monitor changes to software coding
                                      and the responsible individual
                                      (authorized user).


    July 29, 2009                                                                 Business Transformation Agency                                                  Page 67 of 742
                                                                 Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Benefits_Security_Internal_Controls_8 The benefit system must support the       JFMIPSR-01-01,pg39,40     FFMIA         Mandatory        PV        Manage Benefits
                                      access to benefit information process                                                                        Sustain Human Resources
                                      by complying with the disclosure
                                      provisions of the Privacy Act of 1974
                                      (5 U.S.C. § 552A) as amended.


Budgetary_Accounting_1                To support the Document and           OFFM-NO-0106,SMB              FFMIA         Mandatory        FV        Manage Execution Fund Account
                                      Transaction Control process, the Core
                                      financial system must provide
                                      automated functionality to define
                                      tolerances by percentage, "not-to-
                                      exceed" dollar amounts, or "not-to-
                                      exceed" quantities at the document
                                      line level, and use them to control
                                      overages by document line for the
                                      following relationships:
                                      • Obligations to commitments

                                      • Receipts to obligations

                                      • Invoices to obligations

Budgetary_Accounting_2                To support the Funds Distribution       OFFM-NO-0106,FMD            FFMIA         Mandatory        FV        Execute Apportionment and Allocate
                                      process, the Core financial system                                                                           Funds
                                      must provide automated functionality                                                                         Manage Execution Fund Account
                                      to record allotments, sub-allotments,                                                                        Post to General Ledger
                                      allocations and allowances (i.e.
                                      distribute funds) to multiple
                                      organizational levels or other elements
                                      of accounting classification.


Budgetary_Accounting_3                To support the Funds Control/Funds        OFFM-NO-0106,FME          FFMIA         Mandatory        FV        Manage Execution Fund Account
                                      Availability Editing activity, the Core                                                                      Post to General Ledger
                                      financial system must provide
                                      automated functionality to record
                                      transactions against prior year funds,
                                      both expired and unexpired, in the
                                      current year.




    July 29, 2009                                                               Business Transformation Agency                                                   Page 68 of 742
                                                  Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Budgetary_Accounting_4   To support the Funds Control/Funds       OFFM-NO-0106,FME        FFMIA         Mandatory        FV        Manage Execution Fund Account
                         Availability Editing activity, the Core
                         financial system must provide
                         automated functionality to monitor
                         amounts paid out of current year funds
                         to cover obligations made against a
                         cancelled account (TAFS). Prevent
                         payments that cumulatively exceed 1
                         percent of the current year
                         appropriation or the total amount
                         available prior to close of the original
                         appropriation.


Cashier_Function_1       To support the Cashier Function, the   JFMIPSR-03-01,pg23        FFMIA         Mandatory        FV        Apply Collection
                         Revenue System must provide the
                         capability to identify the TAFS for
                         which the deposit is being made.

Cashier_Function_2       To support the Cashier Function, the   JFMIPSR-03-01,pg23        FFMIA         Mandatory        FV        Apply Collection
                         Revenue System must provide the                                                                           Post to General Ledger
                         capability to recognize and classify
                         collections in the proper budgetary
                         categories. Record and control all
                         prescribed types of budgetary
                         authorities relative to earned and
                         unearned revenue or cash collections
                         (both cash and accrual basis),
                         including spending authority from
                         offsetting collections.


Cashier_Function_3       To support the Cashier Function, the   JFMIPSR-03-01,pg23        FFMIA         Mandatory        FV        Match to Outstanding Liability Balance
                         Revenue System must provide the                                                                           Post to General Ledger
                         capability to recognize and record
                         advance payments received.

Cashier_Function_4       To support the Cashier Function, the   JFMIPSR-03-01,pg23        FFMIA         Mandatory        FV        Generate Pro Forma Entries for
                         Revenue System must provide the                                                                           Donation
                         capability to recognize and record                                                                        Post to General Ledger
                         cash donations as non-exchange
                         revenue.




    July 29, 2009                                               Business Transformation Agency                                                    Page 69 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cashier_Function_5                To support the Cashier Function, the JFMIPSR-03-01,pg23           FFMIA         Mandatory        FV        Update Receivable Information
                                  Revenue System must provide the
                                  capability to perform transaction cross-
                                  referencing in which a user can
                                  perform a query to locate the details of
                                  associated transactions in the
                                  processing "chain" (e.g., querying on a
                                  receivable would provide any
                                  associated cash receipts).


Cashier_Function_6                To support the Cashier Function, the    JFMIPSR-03-01,pg23        FFMIA         Mandatory        FV        Record and Manage Receivable
                                  Revenue System must provide the
                                  capability to track funds at various
                                  levels based on required elements of
                                  the accounting classification and
                                  project/program accounting structure.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg20           FFMIA         Mandatory        FV        Post to General Ledger
y_Classification_1               system must record beginning                                                                      MV        Update Asset Record
                                 balances (on-hand), acquisitions,
                                 withdrawals (dispositions), and
                                 calculate ending balances (on-hand)
                                 expressed in dollar values and
                                 physical units.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21           FFMIA         Mandatory        MV        Update Asset Record
y_Classification_10              system must enable and account for
                                 the transfer of responsibility for
                                 inventory from one authorized
                                 manager to another authorized
                                 manager, ensuring that sufficient
                                 information is transferred to provide an
                                 audit trail at the gaining management
                                 activity.




    July 29, 2009                                                         Business Transformation Agency                                                   Page 70 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        MV        Update Asset Record
y_Classification_11              system must provide the capability to
                                 relate data elements to each other as
                                 discussed, through an integrated data
                                 query facility that supports ad hoc
                                 query access to financial information
                                 described in the document and
                                 provides reporting tools for data
                                 analysis.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        MV        Update Asset Record
y_Classification_12              system must comply with the
                                 Government Paperwork Elimination
                                 Act (GPEA) of 1998; requiring Federal
                                 agencies to allow, by October 21,
                                 2003, individuals or entities, as an
                                 option, to interact with them
                                 electronically where practicable.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        MV        Update Asset Record
y_Classification_13              system must adhere to the applicable
                                 final "Electronic and Information
                                 Technology Accessibility Standards"
                                 issued by the Architectural and
                                 Transportation Barriers Compliance
                                 Board, which address technical and
                                 functional performance criteria
                                 necessary for such technology to
                                 comply with section 508 of the
                                 Rehabilitation Act Amendments of
                                 1998.




    July 29, 2009                                                     Business Transformation Agency                                                  Page 71 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Common_Requirements_For_Inventor The system must provide a field for a JFMIPSR-03-02,pg21       FFMIA         Mandatory        MV        Update Asset Record
y_Classification_14              Unique Item Identifier (UID). A UID is a
                                 unique, unambiguous string of alpha
                                 numeric characters that enable the
                                 identification of a specific item from
                                 any other like or unlike it in compliance
                                 with ISOs 15434 and 15418. (ISO
                                 5434:2005 defines the manner in
                                 which data is transferred to high-
                                 capacity ADC media from a supplier's
                                 information system and the manner in
                                 which data is transferred to the
                                 recipient's information system. ISO
                                 15418 is Information technology --
                                 EAN/UCC Application Identifiers and
                                 Fact Data Identifiers and
                                 Maintenance.) (Inventory, Supplies,
                                 and Materials systems are required to
                                 have this field function at all steps in
                                 the process from acquisition to
                                 disposal. Use of the field is at the
                                 discretion of agency management.
                                 However, if an agency decides to
                                 enable this field, the data in the field
                                 must be maintained throughout the
                                 lifecycle of the inventoried item.)




Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg20       FFMIA         Mandatory        FV        Perform Financial Reporting
y_Classification_2               system must record item identification,                                                       MV        Post to General Ledger
                                 classification (e.g., nomenclature,                                                                     Update Asset Record
                                 quantity, description, Federal stock
                                 classification or national stock
                                 number), initial cost, and subsequent
                                 costs related to acquisition (i.e.
                                 holding/handling cost).



Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg20       FFMIA         Mandatory        FV        Post to General Ledger
y_Classification_3               system must record the condition of                                                           MV        Update Asset Record
                                 the inventory.




    July 29, 2009                                                     Business Transformation Agency                                                    Page 72 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg20       FFMIA         Mandatory        FV        Post to General Ledger
y_Classification_4               system must record changes in value                                                           MV        Update Asset Record
                                 of Inventory, Supplies and Materials
                                 due to changes in condition or other
                                 impacting circumstances.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        FV        Post to General Ledger
y_Classification_5               system must record whether material                                                           MV        Update Asset Record
                                 received is hazardous, classified,
                                 requires special handling, requires
                                 special packaging, requires munitions
                                 list controls, requires trade security
                                 controls, or has a shelf life.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        FV        Post to General Ledger
y_Classification_6               system must identify the type of                                                              MV        Update Asset Record
                                 transaction affecting the item; e.g.,
                                 initial acquisition, location, change in
                                 location, and disposal.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        FV        Manage General Ledger
y_Classification_7               system must provide edits (controls) to                                                       MV        Update Asset Record
                                 prevent duplicate entries and reduce
                                 the likelihood of creating erroneous
                                 inventory documents/records, thereby
                                 ensuring the integrity of data recorded
                                 in the system.


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        MV        Update Asset Record
y_Classification_8               system must permit only authorized
                                 users to enter, modify, or otherwise
                                 alter inventory records (see section on
                                 Security and Internal Controls).


Common_Requirements_For_Inventor The Inventory, Supplies and Materials JFMIPSR-03-02,pg21       FFMIA         Mandatory        FV        Manage General Ledger
y_Classification_9               system must provide audit trails to                                                           MV        Update Asset Record
                                 trace transactions from source
                                 documents, original input, other
                                 systems, and system-generated
                                 transactions.




    July 29, 2009                                                     Business Transformation Agency                                                   Page 73 of 742
                                                   Defense Financial Management Improvement Guidance

           Rule Name               Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Computing_Gross_Pay_1    The payroll system must process both JFMIPSR-99-5,pg24              FFMIA         Mandatory        PV        Manage Benefits
                         current period and prior period                                                                              Manage Human Resources
                         adjustments as an integral part of the                                                                       Compensation and Reimbursements
                         payroll cycle.                                                                                               Sustain Human Resources

Computing_Gross_Pay_10   The payroll system must classify and      JFMIPSR-99-5,pg24         FFMIA         Mandatory        PV        Manage Benefits
                         total deductions, subtract total                                                                             Manage Human Resources
                         deductions from gross pay, and apply                                                                         Compensation and Reimbursements
                         formulas or utilize tables to determine
                         employer contributions required for
                         certain payroll taxes and benefits.


Computing_Gross_Pay_11   The system must process and               JFMIPSR-99-5,pg24         FFMIA         Mandatory        PV        Manage Benefits
                         compute pay and deductions for                                                                               Manage Human Resources
                         multiple positions under different                                                                           Compensation and Reimbursements
                         appointment authorities, and different
                         pay, leave, and benefit entitlements.


Computing_Gross_Pay_12   The payroll system must support           JFMIPSR-99-5,pg19         FFMIA         Mandatory        PV        Manage Benefits
                         retirement calculations for all                                                                              Manage Human Resources
                         categories of employees under all                                                                            Compensation and Reimbursements
                         applicable retirement programs to the                                                                        Separate or Terminate Human
                         agency.                                                                                                      Resources


Computing_Gross_Pay_13   The payroll system must accelerate        JFMIPSR-99-5,pg25         FFMIA         Mandatory        PV        Manage Human Resources
                         deductions for employees paid an                                                                             Compensation and Reimbursements
                         annual salary in less than one year
                         (e.g., teachers).

Computing_Gross_Pay_2    The payroll system must compute pay JFMIPSR-99-5,pg24               FFMIA         Mandatory        PV        Manage Human Resources
                         for various types of employees, e.g.,                                                                        Compensation and Reimbursements
                         firefighters, law enforcement officers,
                         emergency medical technicians,
                         teachers, etc.
Computing_Gross_Pay_3    The payroll system must (1) compute JFMIPSR-99-5,pg24               FFMIA         Mandatory        PV        Manage Human Resources
                         earnings amounts or rates for partial                                                                        Compensation and Reimbursements
                         pay periods when entitlement dates do
                         not coincide with the pay period's
                         beginning and ending dates, and (2)
                         process earnings adjustments on a
                         begin-date/end-date basis.




   July 29, 2009                                                   Business Transformation Agency                                                  Page 74 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name              Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Computing_Gross_Pay_4   The payroll system must calculate pay JFMIPSR-99-5,pg24          FFMIA        Mandatory        PV        Assign Human Resources
                        at the end of each period after properly                                                                 Manage Benefits
                        authorized inputs have been received                                                                     Manage Human Resources
                        from the Time and Attendance                                                                             Compensation and Reimbursements
                        Processing Function, and after                                                                           Record Time and Attendance
                        personnel action processing is                                                                           Separate or Terminate Human
                        completed.                                                                                               Resources
                                                                                                                                 Sustain Human Resources


Computing_Gross_Pay_5   The payroll system must calculate     JFMIPSR-99-5,pg24          FFMIA        Mandatory        PV        Manage Human Resources
                        overtime based on FLSA or Title 5                                                                        Compensation and Reimbursements
                        requirements.                                                                                            Record Time and Attendance

Computing_Gross_Pay_6   The payroll system must calculate      JFMIPSR-99-5,pg24         FFMIA        Mandatory        PV        Manage Benefits
                        current and/or retroactive adjustments                                                                   Manage Human Resources
                        for allowances, premiums and                                                                             Compensation and Reimbursements
                        differentials as defined by law or
                        regulation. These may be set dollar
                        amounts or computed as a percentage
                        of pay, applying caps or other
                        limitations when applicable.


Computing_Gross_Pay_7   The payroll system must              JFMIPSR-99-5,pg24           FFMIA        Mandatory        PV        Manage Benefits
                        accommodate information                                                                                  Manage Human Resources
                        requirements to support supplemental                                                                     Compensation and Reimbursements
                        pay actions and recertified checks.

Computing_Gross_Pay_8   To support pay processing, the payroll JFMIPSR-99-5,pg24         FFMIA        Mandatory        PV        Manage Human Resources
                        system must perform statutory limit                                                                      Compensation and Reimbursements
                        and reasonableness tests on gross
                        pay.
Computing_Gross_Pay_9   The payroll system must compute          JFMIPSR-99-5,pg24       FFMIA        Mandatory        PV        Manage Benefits
                        gross pay as the sum of each rate of                                                                     Manage Human Resources
                        pay times the number of units related                                                                    Compensation and Reimbursements
                        to it, minus retirement annuity offsets,
                        if applicable, plus all appropriate
                        allowances and/or other gross pay
                        components.




   July 29, 2009                                              Business Transformation Agency                                                  Page 75 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Confirmation OFFM-NO-0106,FBB                 FFMIA         Mandatory        CSE       Monitor Contract or Order
_1                               process, the Core financial system                                                                            Performance
                                 must provide automated functionality
                                 to update payments with paid
                                 schedule number, confirmed date, and
                                 check number or trace number upon
                                 receipt of confirmation data from the
                                 Government Online Accounting Link
                                 System (GOALS) II Information
                                 Access System (IAS) Regional
                                 Financial Center (RFC) Agency Link.



Confirm_And_Followup_On_Payments To support the Payment Follow-Up           OFFM-NO-0106,PME          FFMIA         Mandatory        CSE       Monitor Payment
_10                              process, the Core financial system
                                 must provide automated functionality
                                 to generate IRS Forms 1099-MISC,
                                 1099-INT and 1099-G in accordance
                                 with IRS regulations and in current IRS
                                 acceptable format, including hard copy
                                 and electronic form (i.e., bulk file). For
                                 example, produce an IRS Form 1099-
                                 MISC for payments of $600 or more to
                                 a sole proprietor for services rendered.



Confirm_And_Followup_On_Payments To support the Reconciliation and          OFFM-NO-0106,FBC          FFMIA         Mandatory        FV        Manage Execution with Treasury
_11                              Reporting process, the Core financial
                                 system must provide automated
                                 functionality to import the Agency
                                 Confirmation Report (ACR) support
                                 listing from the GOALS II/IAS RFC
                                 Agency Link to facilitate reconciliation
                                 of agency recorded disbursements
                                 and cancellations with Treasury.




    July 29, 2009                                                           Business Transformation Agency                                                    Page 76 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Confirm_And_Followup_On_Payments To support the Treasury Information    OFFM-NO-0106,FBA          FFMIA         Mandatory        FV        Manage Execution with Treasury
_12                              Maintenance process, the Core
                                 financial system must provide
                                 automated functionality to capture the
                                 TAS/BETC on all transactions that
                                 impact the FBWT and are reported
                                 through the Government wide
                                 Accounting (GWA) system.


Confirm_And_Followup_On_Payments To support the Payment Confirmation    OFFM-NO-0106,FBB          FFMIA         Mandatory        FV        Manage Execution with Treasury
_13                              process, the Core financial system
                                 must provide automated functionality
                                 to import payment confirmation data
                                 from the GOALS II/IAS RFC Agency
                                 Link.


Confirm_And_Followup_On_Payments To add value to the Payment Follow- OFFM-NO-0106,PME             FFMIA         Value Added      CSE       Monitor Payment
_14                              Up process, the Core financial system
                                 should provide automated functionality
                                 to generate e-mail notification to
                                 employees of travel payments made
                                 by disbursing offices.




    July 29, 2009                                                       Business Transformation Agency                                                   Page 77 of 742
                                                        Defense Financial Management Improvement Guidance

           Rule Name                       Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Follow-Up       OFFM-NO-0106,PME        FFMIA        Mandatory        FV        Manage General Ledger
_15                              process, the Core financial system
                                 must provide automated functionality
                                 to generate the Unmatched Invoice
                                 Document Lines Report. Result is a
                                 list of selected invoice document
                                 numbers with document lines not
                                 matched to obligations, receipts,
                                 and/or acceptance, as required by the
                                 matching terms of the obligation (2, 3
                                 or 4-way matching). Report the
                                 following information for each invoice
                                 document listed:
                                 • Vendor number and name

                                 • Invoice number

                                 • Invoice date

                                 • Invoice receipt date

                                 • Invoice amount

                                 • Referenced obligation number

                                 • Document number

                                 • Document line number(s)

                                 • Document line amount(s)

                                 • Document line accounting
                                 classification
                                 • Unmatched document(s) (obligation,
                                 receipt and/or acceptance)
                                 • Age, in days, that invoice document
                                 line has been unmatched.
                                 Sorting options include document
                                 number, vendor number, vendor
                                 name, accounting classification and
                                 unmatched age.




    July 29, 2009                                                    Business Transformation Agency                                                  Page 78 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Confirmation OFFM-NO-0106,FBB               FFMIA         Mandatory        FV        Process Collection Voucher and
_16                              process, the Core financial system                                                                          Deposit
                                 must provide automated functionality
                                 to assign check numbers to individual
                                 payments, based upon the payment
                                 schedule's check range received from
                                 the GOALS II IAS RFC Agency Link.



Confirm_And_Followup_On_Payments To support the Reconciliation and      OFFM-NO-0106,FBC            FFMIA         Mandatory        FV        Manage General Ledger
_17                              Reporting process, the Core financial
                                 system must provide automated
                                 functionality to compare individual
                                 amounts on the ACR support listing
                                 with amounts recorded in the agency's
                                 general ledger by schedule number
                                 and accounting period. The accounting
                                 period is the fiscal month and year
                                 used for financial reporting purposes.



Confirm_And_Followup_On_Payments To support the Reconciliation and        OFFM-NO-0106,FBC          FFMIA         Mandatory        CSE       Process Contract Clauses
_18                              Reporting process, the Core financial
                                 system must provide automated
                                 functionality to generate the GL/ACR
                                 Discrepancy Report. Parameter is
                                 accounting period. Result is a report
                                 including schedule number, dollar
                                 amount, and confirmed date or
                                 transaction date of:
                                 • Items on the ACR listing and not in
                                 the agency's general ledger
                                 • Items on the ACR listing for a
                                 different amount than in the agency's
                                  general ledger
                                 • Items in the agency's general ledger
                                 and not on the ACR listing.




Confirm_And_Followup_On_Payments The system must verify extensions        DoDFMRVol1,Ch2,Add2D      DFMIR         Mandatory        CSE       Process Contract Clauses
_19                              and computations.



    July 29, 2009                                                         Business Transformation Agency                                                   Page 79 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Follow-Up        OFFM-NO-0106,PME       FFMIA         Mandatory        CSE       Collect
_2                               process, the Core financial system                                                            FV        Manage Supply Chain Entitlement
                                 must provide automated functionality                                                                    Monitor Contract or Order
                                 to maintain a history of the following                                                                  Performance
                                 information for each payment made:
                                 • Accounting classification information

                                 • Agency Locator Code (ALC)

                                 • Treasury Account Symbol (TAS) /
                                 Business Event Type Code (BETC)
                                 • Referenced obligation document
                                 number(s)
                                 • Source document number(s)
                                 (reimbursable agreement number,
                                 Blanket Purchase Agreement (BPA)
                                 and associated BPA call number,
                                 Contract and associated delivery/task
                                 order number, and grant number)
                                 • Total invoice amount

                                 • Payment voucher document number

                                 • Vendor invoice number

                                 • Vendor information (number, name,
                                 address, Taxpayer Identification
                                 Number (TIN), and Data Universal
                                 Numbering System (DUNS)+4 number
                                 for Central Contractor Registration
                                 (CCR) vendors)
                                 • Payment address or bank account
                                 number and routing number
                                 • Payment method (e.g., check,
                                 Electronic Fund Transfer (EFT))
                                 • Payment amount

                                 • Interest paid

                                 • Discount taken

                                 • Internal offset made

                                 • Date due

                                 • Date paid.




    July 29, 2009                                                     Business Transformation Agency                                                   Page 80 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Confirm_And_Followup_On_Payments To support the Reconciliation and       OFFM-NO-0106,FBC          FFMIA         Mandatory        FV        Manage Execution with Treasury
_20                              Reporting process, the Core financial
                                 system must provide automated
                                 functionality to import IPAC support
                                 listing from the GOALS II/IAS to
                                 facilitate reconciliation of agency
                                 recorded IPAC transactions with
                                 Treasury.
Confirm_And_Followup_On_Payments The system must record distribution of DoDFMRVol1,Ch2,Add2D       DFMIR         Mandatory        FV        Establish Funds Control
_21                              individual obligation line items to
                                 multiple classification structures.

Confirm_And_Followup_On_Payments To support the Reconciliation and       OFFM-NO-0106,FBC          FFMIA         Mandatory        FV        Manage General Ledger
_22                              Reporting process, the Core financial
                                 system must provide automated
                                 functionality to compare IPAC
                                 transactions on the IPAC support
                                 listing with IPAC transactions recorded
                                 in the agency's general ledger.


Confirm_And_Followup_On_Payments To support the Reconciliation and       OFFM-NO-0106,FBC          FFMIA         Mandatory        FV        Manage Execution with Treasury
_23                              Reporting process, the Core financial
                                 system must provide automated
                                 functionality to generate the General
                                 Ledger (GL)/IPAC Discrepancy
                                 Report. Parameter is the accounting
                                 period. Result is report including
                                 document reference number (from
                                 IPAC Support Listing), dollar amount,
                                 and audit date or transaction date of:
                                 • Items on the IPAC support listing and
                                 not in the agency's general ledger
                                 • Items on the IPAC support listing for
                                 a different amount than in the agency's
                                 general ledger
                                 • Items in the agency's general ledger
                                 and not on the IPAC support listing.




    July 29, 2009                                                        Business Transformation Agency                                                    Page 81 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                 Primary Reference      Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Follow-Up         OFFM-NO-0106,PME          FFMIA         Mandatory        FV        Disburse
_24                              process, the Core financial system
                                 must provide automated functionality
                                 to query payment data. Parameter is
                                 accounting period range. Result is
                                 number of payments and percent of
                                 total by payment method (EFT vs.
                                 check).
Confirm_And_Followup_On_Payments To support the Payment Follow-Up         OFFM-NO-0106,PME          FFMIA         Mandatory        FV        Capture Collection Information
_25                              process, the Core financial system                                                                          Research Debit Voucher Information
                                 must provide automated functionality
                                 to generate a report of payment
                                 vouchers past their due date, as of
                                 current system date. List the selected
                                 payment vouchers with the following
                                 information:
                                 • Payment voucher number

                                 • Referenced obligation number

                                 • Vendor invoice number

                                 • Vendor number and name

                                 • Invoice date

                                 • Invoice amount

                                 • Invoice due date

                                 • Number of days late.

                                 Sort options include number of days
                                 late and vendor number.



Confirm_And_Followup_On_Payments To support the Payment Follow-Up       OFFM-NO-0106,PME            FFMIA         Mandatory        FV        Disburse
_26                              process, the Core financial system
                                 must provide automated functionality
                                 to query IRS 1099-MISC information.
                                 Parameters include calendar year,
                                 vendor name (legal or Doing Business
                                 As (DBA)), TIN and DUNS+4 number.
                                 Result is details supporting IRS 1099-
                                 MISC reporting.




    July 29, 2009                                                         Business Transformation Agency                                                    Page 82 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Follow-Up         5CFRVol3,ChIII,Pt1315     FFMIA        Mandatory        FV        Disburse
_27                              process, the Core financial system       OFFM-NO-0106,PME
                                 must provide automated functionality
                                 to query payments data. Identify a
                                 sample of payments for review based
                                 on agency-defined sampling criteria
                                 and the date(s) of payment. Result is a
                                 list of invoice document numbers with
                                 drill down to invoice details, including
                                 data required on a proper vendor
                                 invoice per 5 CFR 1315.



Confirm_And_Followup_On_Payments To support the Treasury Information     OFFM-NO-0106,FBA           FFMIA        Mandatory        FV        Manage Execution with Treasury
_28                              Maintenance process, the Core
                                 financial system must provide
                                 automated functionality to maintain
                                 GWA Reporter Categories.


Confirm_And_Followup_On_Payments To support the Treasury Information   OFFM-NO-0106,FBA             FFMIA        Mandatory        FV        Capture Collection Information
_29                              Maintenance process, the Core
                                 financial system must provide
                                 automated functionality to define the
                                 GWA Reporter Category for GWA
                                 reporter ALCs as
                                 • IPAC Only

                                 • CA$HLINK II Only

                                 • Treasury Disbursing Office (TDO)
                                 Payments Only
                                 • IPAC and CA$HLINK II

                                 • IPAC and TDO Payments

                                 • TDO Payments and CA$HLINK II, or

                                 • IPAC, CA$HLINK II and TDO
                                 Payments.


Confirm_And_Followup_On_Payments The system must provide on-line     DoDFMRVol1,Ch2,Add2D           DFMIR        Mandatory        CSE       Manage Supply Chain Entitlement
_3                               access to vendor activity by vendor
                                 name, vendor short name, and vendor
                                 number.




    July 29, 2009                                                        Business Transformation Agency                                                    Page 83 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                  Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Confirmation    OFFM-NO-0106,FBB            FFMIA        Mandatory        FV        Capture Collection Information
_30                              process, the Core financial system                                                                         Process Collection Voucher and
                                 must provide automated functionality                                                                       Deposit
                                 to correct system-assigned check
                                 numbers on payment records that do
                                 not match the actual check number
                                 assigned by Treasury.


Confirm_And_Followup_On_Payments To support the Reconciliation and       OFFM-NO-0106,FBC           FFMIA        Mandatory        FV        Manage Execution with Treasury
_4                               Reporting process, the Core financial
                                 system must provide automated
                                 functionality to generate the FMS 224
                                 Report. Parameter is the accounting
                                 period. Result is the FMS 224,
                                 Statement of Transactions, for non-
                                 GWA reporting ALC's. Generate the
                                 report in both hard copy and electronic
                                 formats required by the Department of
                                 the Treasury.


Confirm_And_Followup_On_Payments The system must provide the           TFMVol1,Pt2,Ch3100,Sec3150   FFMIA        Mandatory        CSE       Manage Sales and Procurement
_5                               Statement of Transactions According TFMVol1,Pt2,Ch3100,App4                                      FV        Perform Financial Reporting
                                 to Appropriations, Funds, and Receipt
                                 Accounts, FMS Form 1220, data in
                                 hard copy format required by the
                                 Department of the Treasury.


Confirm_And_Followup_On_Payments The system must maintain an on-line DoDFMRVol1,Ch2,Add2D           DFMIR        Mandatory        CSE       Execute Contract Closeout
_6                               history file of closed out documents for
                                 a user-defined period of time.




    July 29, 2009                                                       Business Transformation Agency                                                    Page 84 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Confirm_And_Followup_On_Payments To support the Payment Confirmation OFFM-NO-0106,FBB              FFMIA        Mandatory        FV        Generate Disbursement In-Transit Pro
_7                               process, the Core financial system                                                                        Forma Entries
                                 must provide automated functionality                                                                      Post General Ledger Transactions
                                 to liquidate individual disbursement-in-
                                 transit transactions and record
                                 confirmed disbursements upon receipt
                                 of payment confirmation from the
                                 Government Online Accounting Link
                                 System (GOALS) II Information
                                 Access System (IAS) Regional
                                 Financial Center (RFC) Agency Link.



Confirm_And_Followup_On_Payments To support the Disbursing process, the OFFM-NO-0106,PMD           FFMIA        Mandatory        CSE       Capture Pro Forma Entries
_8                               Core financial system must provide                                                              FV        Manage Supply Chain Entitlement
                                 automated functionality to record                                                                         Monitor Contract or Order
                                 transactions to reflect disbursement                                                                      Performance
                                 activity initiated by other agencies and
                                 recorded in Intra-governmental
                                 Payment and Collection (IPAC).


Confirm_And_Followup_On_Payments To support the Payment Confirmation OFFM-NO-0106,FBB              FFMIA        Mandatory        CSE       Monitor Payment
_9                               process, the Core financial system
                                 must provide automated functionality
                                 to assign check numbers to individual
                                 payment records when a payment
                                 schedule has multiple check ranges or
                                 a break in check numbers.



Cost_And_Revenue_Accumulation_1    The managerial cost accounting       JFMIPSR-8,PgIII-8          FFMIA        Mandatory        CSE       Capture Cost Information
                                   system must send cost data to the    SFFAS7,36                                                FV        Monitor Contract or Order
                                   appropriate system to calculate                                                                         Performance
                                   exchange revenue for goods or
                                   services made or produced to order
                                   under a contract.
Cost_And_Revenue_Accumulation_10 The managerial cost accounting       JFMIPSR-8,PgIII-9            FFMIA        Mandatory        FV        Capture Cost Information
                                 system must be capable of supporting
                                 cost management by accumulating
                                 numerically valued agency-defined
                                 output information.




    July 29, 2009                                                       Business Transformation Agency                                                    Page 85 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                      Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_And_Revenue_Accumulation_11 The managerial cost accounting       JFMIPSR-8,PgIII-9                FFMIA        Mandatory        FV        Capture Cost Information
                                 system must be capable of supporting
                                 cost management by calculating the
                                 unit cost of outputs.
Cost_And_Revenue_Accumulation_2    The managerial cost accounting           JFMIPSR-8,PgIII-7          FFMIA        Value Added      FV        Capture Cost Information
                                   system should support the inventory
                                   system (or other property system) by
                                   accumulating costs from multiple
                                   sources for inventory and related
                                   property that has been acquired, is
                                   undergoing repair, or is in production
                                   (work-in-process).


Cost_And_Revenue_Accumulation_3    The managerial cost accounting           JFMIPSR-8,PgIII-7          FFMIA        Value Added      FV        Capture Cost Information
                                   system should provide accumulated                                                                           Post to General Ledger
                                   costs, including applicable indirect                                                                        Verify Asset or Expense Posting
                                   costs, to the appropriate system for                                                                        Accounts
                                   recording as the appropriate asset or
                                   expense type.


Cost_And_Revenue_Accumulation_4    The managerial cost accounting       JFMIPSR-8,PgIII-7              FFMIA        Value Added      FV        Capture Cost Information
                                   system should accumulate and
                                   determine the full cost of general
                                   property, plant and equipment (PP&E)
                                   under construction.
Cost_And_Revenue_Accumulation_5    The managerial cost accounting           JFMIPSR-8,PgIII-7          FFMIA        Value Added      FV        Capture Cost Information
                                   system should transfer the completed
                                   project construction in progress cost to
                                   the appropriate asset account and
                                   passed the information to the core
                                   financial system and property
                                   management system(s) for asset
                                   valuation purposes.




    July 29, 2009                                                           Business Transformation Agency                                                    Page 86 of 742
                                                             Defense Financial Management Improvement Guidance

           Rule Name                         Rule Description                         Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_And_Revenue_Accumulation_6   The managerial cost accounting               JFMIPSR-8,PgIII-9          FFMIA        Mandatory        FV        Capture Cost Information
                                  system shall recognize the cost of           SFFAS16,8
                                  acquiring, improving, reconstructing, or     SFFAS6,61
                                  renovating heritage assets, other than       SFFAS6,69
                                  multi-use heritage assets, on the            SFFAS8,77
                                  statement of net cost for the period in      SFFAS8,80
                                  which the cost is incurred. The cost
                                  shall include all costs incurred during
                                  the period to bring the item to its
                                  current condition at its initial location.



Cost_And_Revenue_Accumulation_7   The managerial cost accounting          JFMIPSR-8,PgIII-9               FFMIA        Mandatory        FV        Capture Cost Information
                                  system must accumulate and maintain
                                  Stewardship Investment cost
                                  (investment in human capital, research
                                  and development, and non-federal
                                  physical property), on an annual basis
                                  for stewardship reporting, for a period
                                  of five years


Cost_And_Revenue_Accumulation_8   The job order cost system must         DoDFMRVol4,Ch20,Sub200305A       DFMIR        Mandatory        FV        Capture Cost Information
                                  calculate actual shop rates from the
                                  cost obtained from the same database
                                  used to prepare general ledger control
                                  account entries.
Cost_And_Revenue_Accumulation_9   The managerial cost accounting               JFMIPSR-8,PgIII-9          FFMIA        Value Added      FV        Capture Cost Information
                                  system should be capable of
                                  supporting cost management by
                                  accumulating costs in agency defined
                                  cost centers that are associated with
                                  agency-defined performance
                                  measures
Cost_Assignment_1                 The managerial cost accounting               JFMIPSR-8,PgIII-6          FFMIA        Mandatory        FV        Define Cost Performance Model
                                  system must support one or more of           SFFAS4,147
                                  the following costing methodologies:
                                  • Activity Based Costing (ABC),

                                  • Job Order Costing,

                                  • Process Costing and

                                  • Standard Costing.




   July 29, 2009                                                               Business Transformation Agency                                                   Page 87 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference           Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Assignment_10     The costs of compensated personal       DoDFMRVol4,Ch19,Sub190208B     DFMIR        Mandatory        FV        Allocate to Model Element
                       absence for an entire cost accounting                                                                          Capture Cost Information
                       period on a pro-rata annual basis
                       among the final cost objectives of that
                       period.
Cost_Assignment_11     The depreciable cost of tangible         DoDFMRVol4,Ch19,Sub190209A    DFMIR        Mandatory        FV        Capture Cost Information
                       capital asset (or group of assets) shall
                       be assigned to cost accounting
                       periods in accordance with the
                       following criteria:
                       • The depreciable cost of a tangible
                       capital asset shall be its capitalized
                       cost less its estimated residual
                       value.
                       • The estimated service life or a
                       tangible capital asset (or group of
                       assets) shall be used to determine the
                       cost accounting periods to which the
                       depreciable cost will be assigned.


Cost_Assignment_12     The annual depreciation cost of a         DoDFMRVol4,Ch19,Sub190209B   DFMIR        Mandatory        FV        Allocate to Model Element
                       tangible capital asset (or group of                                                                            Capture Cost Information
                       assets) shall be allocated to cost
                       objectives for which it provides service
                       in accordance with the following
                       criteria:
                       • Depreciation costs may be charged
                       as a direct cost only if depreciation
                       costs of all like assets used for similar
                       purposes are charged in the same
                       manner.
                       • Depreciation costs charged to
                       service or general and administration
                       cost centers shall be included in the
                       allocated costs of those centers.
                       • Depreciation costs of capital assets
                       used within a production cost center
                       but which are not charged directly to a
                       cost objective shall be included as an
                       indirect cost of that center.




   July 29, 2009                                            Business Transformation Agency                                                          Page 88 of 742
                                                 Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                    Primary Reference       Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Assignment_13     Business unit general and               DoDFMRVol4,Ch19,Sub190210A   DFMIR        Mandatory        FV        Capture Cost Information
                       administrative (G&A) expenses shall
                       be allocated to final cost objectives
                       based on their beneficial or causal
                       relationship.
Cost_Assignment_14     The G&A expense pool of an business DoDFMRVol4,Ch19,Sub190210C       DFMIR        Mandatory        FV        Capture Cost Information
                       unit for a cost accounting period shall
                       be allocated to final cost objectives of
                       that cost accounting period by means
                       of a cost input base representing the
                       total activity of the business unit.



Cost_Assignment_15     Headquarters expenses received by a DoDFMRVol4,Ch19,Sub190210D       DFMIR        Mandatory        FV        Allocate to Model Element
                       segment shall be allocated to segment                                                                        Capture Cost Information
                       cost objectives as follows:
                       • Expenses related to the management
                       and administration of the receiving
                       segment as a whole shall be included
                       in the receiving segment's G&A
                       expense pool.
                       • Expenses related to the management
                       and administration of specific activities
                       of segments shall be allocated to the
                       segment cost objectives in proportion
                       to the beneficial or causal relationship
                       between the cost objectives and the
                       expenses, if such allocation is
                       significant, in amount. When a
                       beneficial or causal relationship for
                       expenses is not identifiable with
                       segment cost objectives, the expenses
                       may be included in the G&A expense
                       pool.




   July 29, 2009                                               Business Transformation Agency                                                     Page 89 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference          Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Assignment_16     Where a segment performs               DoDFMRVol4,Ch19,Sub190210F   DFMIR        Mandatory        FV        Allocate to Model Element
                       headquarters functions and also                                                                             Capture Cost Information
                       performs as an operating segment                                                                            Define Responsibility Segment
                       having a responsibility for final cost
                       objectives, the expense of the
                       headquarters functions shall be
                       segregated. These expenses shall be
                       allocated to all benefiting or causing
                       segments, including the segment
                       performing the headquarters functions,
                       pursuant to written and consistently
                       followed accounting practices for the
                       allocation of headquarters expenses to
                       segments.




   July 29, 2009                                          Business Transformation Agency                                                         Page 90 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference           Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Assignment_17     Deferred compensation shall be            DoDFMRVol4,Ch19,Sub190215B   DFMIR        Mandatory        FV        Capture Cost Information
                       accounted for as follows:                 DoDFMRVol4,Ch19,Sub190215C
                       • The cost of all deferred                DoDFMRVol4,Ch19,Sub190215D
                       compensation, except for annual
                       leave, sick leave, and pension cost foe
                       which specific guidance is provided in
                       paragraph 190211.C, below, shall be
                       assigned to the cost accounting period
                       in which the obligation to compensate
                       the employee occurs. In the event no
                       obligation is incurred prior to payment,
                       the cost of deferred compensation
                       shall be the amount paid and shall be
                       assigned to the cost accounting period
                       in which the payment is made.
                       • The obligation for the cost of deferred
                       compensation is deemed to have
                       occurred when all of the following
                       conditions have been met. However,
                       for awards that require that the
                       employee perform future service in
                       order to receive the benefits, the
                       obligation is deemed to have been
                       incurred as the future service is
                       performed for that part of the award
                       attributable to such future service.
                        1. There is a requirement to make the
                       future payments that cannot be
                       unilaterally avoided.
                        2. The deferred compensation award
                       is to be satisfied by a future payment
                       of money.
                        3. The amount of the future payment
                       can be measured with reasonable
                       accuracy.
                        4. The recipient of the award is
                       known.
                        5. If the terms of the award require
                       that certain events must occur before




   July 29, 2009                                           Business Transformation Agency                                                           Page 91 of 742
                                               Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Assignment_18     The job order cost system should:      DoDFMRVol4,Ch20,Sub200302   DFMIR        Mandatory        FV        Capture Cost Information
                       • Allow the posting of the work in                                                                         Post General Ledger Transactions
                       process cost, for all open job order                                                                       Verify Asset or Expense Posting
                       numbers, to the Work In Process-In                                                                         Accounts
                       House and Construction In Progress-
                       In House accounts.
                       • Transfer the appropriate amount from
                       Work in Process-In-House and
                       Construction in Progress accounts to
                       the Cost of Goods Sold or applicable
                       asset accounts when production
                       departments complete a job order.




Cost_Assignment_19     Unfunded cost financed by other       DoDFMRVol4,Ch20,Sub200305B   DFMIR        Mandatory        FV        Capture Cost Information
                       organizations or by prior                                                                                  Post General Ledger Transactions
                       appropriations should be added to the
                       shop rate charges and billed to non-
                       DoD ordering activities or considered
                       in making cost effectiveness
                       comparisons.
Cost_Assignment_2      If the cost assignment process affects JFMIPSR-8,PgIII-5           FFMIA        Mandatory        FV        Capture Cost Information
                       the values of Standard General Ledger                                                                      Post to General Ledger
                       (SGL) accounts in the core financial                                                                       Request Correcting Pro Forma Entries
                       system's general ledger, such as
                       inventory or fixed asset accounts, the
                       managerial cost accounting system
                       must send the summarized impact of
                       cost assignments to the core financial
                       system for posting to the general
                       ledger and external reporting.


Cost_Assignment_20     The general and administrative (G&A) DoDFMRVol4,Ch20,Sub200309     DFMIR        Mandatory        FV        Allocate to Model Element
                       expenses are accumulated in the                                                                            Capture Cost Information
                       activities indirect cost centers and
                       charged to customers by equitably
                       prorating the expense to job orders.




   July 29, 2009                                             Business Transformation Agency                                                     Page 92 of 742
                                                  Defense Financial Management Improvement Guidance

           Rule Name              Rule Description                     Primary Reference       Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Assignment_3      Costs of supporting services and      SFFAS4,122                       FFMIA        Mandatory        FV        Capture Cost Information
                       intermediate products should be
                       assigned to the segments that receive
                       the services and products. This is
                       referred to as the intra-entity cost
                       assignments.
Cost_Assignment_4      With respect to each responsibility     SFFAS4,123                     FFMIA        Mandatory        FV        Capture Cost Information
                       segment, the costs that are to be                                                                              Define Responsibility Segment
                       assigned to outputs: (a) direct and
                       indirect costs incurred within the
                       responsibility segment, (b) costs of
                       other responsibility segments that are
                       assigned to the segment, and (c) inter-
                       entity costs recognized by the
                       receiving entity and assigned to the
                       segment. If a responsibility segment
                       produces one kind of output only,
                       costs of resources used to produce the
                       output are assigned to the output.


Cost_Assignment_5      The costs that can be traced to each      SFFAS4,139                   FFMIA        Mandatory        FV        Allocate to Model Element
                       of the activities (or outputs) shall be                                                                        Capture Cost Information
                       assigned to the activities (or outputs)
                       directly.
Cost_Assignment_6      To determine the full cost of each of     SFFAS4,140                   FFMIA        Mandatory        FV        Allocate to Model Element
                       the activities or outputs that share                                                                           Capture Cost Information
                       resources, indirect common costs
                       shall be assigned to those activities.
                       Common costs shall be assigned to
                       activities either on a cause-and-effect
                       basis, if feasible, or through
                       reasonable allocations.


Cost_Assignment_7      Each type of cost shall be allocated      DoDFMRVol4,Ch19,Sub190202A   DFMIR        Mandatory        FV        Allocate to Model Element
                       only once, and on only one basis, to                                                                           Capture Cost Information
                       any job or other cost objective.




   July 29, 2009                                                 Business Transformation Agency                                                     Page 93 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                     Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Assignment_8                 DoD activities shall use the October 1 DoDFMRVol4,Ch19,Sub190207     DFMIR        Mandatory        FV        Allocate to Model Element
                                  to September 30 fiscal year as the                                                                           Capture Cost Information
                                  cost accounting period, except that:
                                  - The costs of an indirect function that
                                  exists for only a part of a cost
                                  accounting period may be allocated to
                                  cost objectives of that same part of the
                                  period if the cost is material in amount,
                                  accumulated in a separate indirect
                                  cost pool, and allocated on the basis
                                  of an appropriate direct measure of the
                                  activity or output of the function during
                                  that part of the period.
                                  - A transitional cost accounting period
                                  shall be used whenever a change of
                                  fiscal year occurs.
                                  -The same cost accounting period
                                  shall be used for accumulating costs in
                                  an indirect cost pool as for establishing
                                  its allocation base.




Cost_Assignment_9                 The costs of compensated personal       DoDFMRVol4,Ch19,Sub190208A   DFMIR        Mandatory        FV        Allocate to Model Element
                                  absence (illness, vacation, holidays,                                                                        Capture Cost Information
                                  jury duty, military training or other
                                  absence for which compensation is
                                  paid directly to an employee) shall be
                                  assigned to the cost accounting period
                                  or periods in which the entitlement was
                                  earned.


Cost_Monitoring_And_Reporting_1   The managerial cost accounting          JFMIPSR-8,PgIII-9            FFMIA        Value Added      FV        Capture Cost Information
                                  system should be able to provide cost                                                                        Perform Financial Reporting
                                  data needed to produce the Statement
                                  of Net Costs for the agency's financial
                                  statements
Cost_Monitoring_And_Reporting_2   The managerial cost accounting           JFMIPSR-8,PgIII-7           FFMIA        Value Added      FV        Capture Cost Information
                                  system should assist in the reporting
                                  of financial data related to stewardship
                                  resources.




    July 29, 2009                                                        Business Transformation Agency                                                       Page 94 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Monitoring_And_Reporting_3   The managerial cost accounting       JFMIPSR-8,PgIII-9             FFMIA         Mandatory        FV        Capture Cost Information
                                  system must be capable of supporting
                                  cost management by producing unit
                                  cost reports by output.

Cost_Monitoring_And_Reporting_4   The managerial cost accounting       JFMIPSR-8,PgIII-9             FFMIA         Mandatory        FV        Capture Cost Information
                                  system must be capable of supporting
                                  cost management by producing
                                  project, job order, and work order
                                  reports showing costs for a project
                                  from its inception up to the current
                                  date.
Cost_Monitoring_And_Reporting_5   The managerial cost accounting        JFMIPSR-8,PgIII-9            FFMIA         Mandatory        FV        Capture Cost Information
                                  system must be capable of supporting
                                  cost management by producing
                                  contract reports showing the revenues
                                  and costs associated with each
                                  contract (i.e. customer orders).


Cost_Monitoring_And_Reporting_6   A reporting entity and its responsibility SFFAS4,92                FFMIA         Mandatory        FV        Capture Cost Information
                                  segments may incur general                                                                                  Define Responsibility Segment
                                  management and administrative                                                                               Perform Financial Reporting
                                  support costs that cannot be traced,
                                  assigned, or allocated to segments
                                  and their outputs. These unassigned
                                  costs are part of the organization
                                  costs, and they shall be reported on
                                  the entity's financial statements (such
                                  as the Statement of Net Costs) as
                                  costs not assigned to programs.


Cost_Monitoring_And_Reporting_7   Inter-entity expenses/assets and        DoDFMRVol6B,Ch10,Sub102003A FFMIA        Mandatory        FV        Capture Cost Information
                                  financing sources shall be eliminated   DoDFMRVol6B,Ch10,Sub102003D
                                  for any consolidated financial          DoDFMRVol6B,Ch5,Sub050202A
                                  statements covering both entities.      DoDFMRVol6B,Ch10,Sub100401
                                                                          SFFAS4,109




    July 29, 2009                                                         Business Transformation Agency                                                    Page 95 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                 Primary Reference          Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Monitoring_And_Reporting_8      The managerial cost accounting         DoDFMRVol4,Ch21,Sub2104       FFMIA        Mandatory        FV        Capture Cost Information
                                     system must be able to provide cost    DoDFMRVol4,Ch20,Sub2005                                               Perform Financial Reporting
                                     data needed to produce the Statement JFMIPSR-8,PgIII-9
                                     of Net Cost for the agency's financial
                                     statements.
Cost_Monitoring_And_Reporting_9      The process cost accounting system DoDFMRVol4,Ch21,Sub210202         DFMIR        Mandatory        FV        Capture Cost Information
                                     must update the appropriate general                                                                          Post General Ledger Transactions
                                     ledger control accounts (Inventory                                                                           Verify Asset or Expense Posting
                                     Held for Sale and the Work in Process                                                                        Accounts
                                     In-house) in accordance with posting
                                     logic identified in Table 21-1.


Cost_Of_Post_1991_Direct_Loans_1     The system must record Post-1991        DoDFMRVol12,Ch4,Sub040202A   FFMIA        Mandatory        FV        Record Loans and Grants
                                     direct loans as assets at the present   SFFAS2,22
                                     value of their estimated net cash
                                     inflows. The difference between the
                                     outstanding principal of the loans and
                                     the present value of their net cash
                                     inflows is recognized as a subsidy cost
                                     allowance.


Cost_Of_Post_1991_Direct_Loans_10 The direct loan system must record      DoDFMRVol12,Ch4,Sub040202F      FFMIA        Mandatory        FV        Record Loans and Grants
                                  interest accrued on debt to the U.S.    SFFAS2,37
                                  Treasury as interest expense.

Cost_Of_Post_1991_Direct_Loans_11 The system must record losses and       DoDFMRVol12,Ch4,Sub040202G      FFMIA        Mandatory        FV        Record Loans and Grants
                                  liabilities of direct loans obligated   SFFAS2,39
                                  before October 1, 1992, when it is
                                  more likely than not that the direct
                                  loans will not be totally collected.


Cost_Of_Post_1991_Direct_Loans_12 The system must record re-estimate of DoDFMRVol12,Ch4,Sub040202G        FFMIA        Mandatory        FV        Record Loans and Grants
                                  the allowance of the uncollectible    SFFAS2,39
                                  amounts for pre-1992 direct loans
                                  each year as of the date of the
                                  financial statements.
Cost_Of_Post_1991_Direct_Loans_13 The system must record the amount of DoDFMRVol12,Ch4,Sub040202I         FFMIA        Mandatory        FV        Record Loans and Grants
                                  the modification cost of direct loans as SFFAS2,45
                                  a modification expense when the loans
                                  are modified.




    July 29, 2009                                                         Business Transformation Agency                                                         Page 96 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference       Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Of_Post_1991_Direct_Loans_14 The system must record any            DoDFMRVol12,Ch4,Sub040202I       FFMIA        Mandatory        FV        Record Loans and Grants
                                  difference between the change in book SFFAS2,48
                                  value and the cost of modification of
                                  direct loans as a gain or loss.

Cost_Of_Post_1991_Direct_Loans_15 For post-1991 direct loans the direct   DoDFMRVol12,Ch4,Sub040202I     FFMIA        Mandatory        FV        Record Loans and Grants
                                  loan system must record, as a           SFFAS2,48
                                  financing source (or a reduction in
                                  financing source), the modification
                                  adjustment transfer paid or received to
                                  offset any gain or loss.


Cost_Of_Post_1991_Direct_Loans_16 The system must record any                DoDFMRVol12,Ch4,Sub040202I   FFMIA        Mandatory        FV        Record Loans and Grants
                                  difference between the book value         SFFAS2,55
                                  (loss or gain) and the cost of
                                  modification on a sale of a direct loan
                                  as a gain or loss.
Cost_Of_Post_1991_Direct_Loans_17 The system must record acquired           DoDFMRVol12,Ch4,Sub040202L   FFMIA        Mandatory        FV        Record Loans and Grants
                                  loans at the present value of the         SFFAS2,59
                                  estimated net cash inflows expected
                                  from selling the loans or from
                                  collecting payments from the
                                  borrowers, discounted at the original
                                  discount rate.
Cost_Of_Post_1991_Direct_Loans_18 The actual historical experience for the DoDFMRVol12,Ch4,Sub040202E    DFMIR        Mandatory        FV        Record Loans and Grants
                                  performance of a risk category is a
                                  primary factor upon which an
                                  estimation of default cost is based. To
                                  document actual experience, a
                                  database shall be maintained to
                                  provide historical information on actual
                                  payments, prepayments, late
                                  payments, defaults, recoveries, and
                                  amounts written off.




    July 29, 2009                                                           Business Transformation Agency                                                    Page 97 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                  Primary Reference           Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Of_Post_1991_Direct_Loans_19 When a post-1991 direct loan is         DoDFMRVol12,Ch4,Sub040202I     FFMIA        Mandatory        FV        Record Loans and Grants
                                  modified, the direct loan system must SFFAS2,46
                                  change the existing book value of that
                                  loan to an amount equal to the present
                                  value of the net cash inflows projected
                                  under the modified terms from the time
                                  of modification to the loan's maturity.
                                  That amount is discounted at the
                                  original discount rate (the rate that
                                  originally was used to calculate the
                                  present value of the direct loan, when
                                  the direct loan was disbursed).




Cost_Of_Post_1991_Direct_Loans_2   The system must record a subsidy         DoDFMRVol12,Ch4,Sub040202C   FFMIA        Mandatory        FV        Record Loans and Grants
                                   expense for Post-1991 direct loans       SFFAS2,24
                                   disbursed during a fiscal year. The
                                   amount of the subsidy expense equals
                                   the present value of estimated cash
                                   outflows over the life of the loans
                                   minus the present value of estimated
                                   cash inflows, discounted at the interest
                                   rate of marketable United States (U.S.)
                                   Treasury securities with a similar
                                   maturity term, and applicable to the
                                   period during which the loans are
                                   disbursed.


Cost_Of_Post_1991_Direct_Loans_20 When property is transferred from       DoDFMRVol12,Ch4,Sub040202L     FFMIA        Mandatory        FV        Record Loans and Grants
                                  borrowers to a federal credit program, SFFAS2,57
                                  through foreclosure or other means, in
                                  partial or full settlement of post-1991
                                  direct loans or as a compensation for
                                  losses that the government sustained
                                  under post-1991 loan guarantees, the
                                  direct loan system must recognized
                                  the foreclosed property as an asset
                                  and record the asset at the present
                                  value of its estimated future net cash
                                  inflows discounted at the original
                                  discount rate.




    July 29, 2009                                                      Business Transformation Agency                                                         Page 98 of 742
                                                            Defense Financial Management Improvement Guidance

           Rule Name                         Rule Description                  Primary Reference         Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Cost_Of_Post_1991_Direct_Loans_3   The system must record, for the fiscal DoDFMRVol12,Ch4,Sub040202C    FFMIA        Mandatory        FV        Record Loans and Grants
                                   year during which new direct loans are SFFAS2,25
                                   disbursed, the components of subsidy
                                   expense of those new direct loans are
                                   recognized separately among interest
                                   subsidy costs, default costs, fees and
                                   other collections, and other subsidy
                                   costs.


Cost_Of_Post_1991_Direct_Loans_4   The direct loan system must record    DoDFMRVol12,Ch4,Sub040202C     FFMIA        Mandatory        FV        Record Loans and Grants
                                   the present value of fees and other   SFFAS2,28
                                   collections as a deduction from
                                   subsidy costs.
Cost_Of_Post_1991_Direct_Loans_5   The system must amortize the subsidy DoDFMRVol12,Ch4,Sub040202D      FFMIA        Mandatory        FV        Record Loans and Grants
                                   cost allowance for direct loans by the SFFAS2,30
                                   interest method using the interest rate
                                   that was originally used to calculate
                                   the present value of the direct loans
                                   when the direct loans that were
                                   disbursed. The amortized amount is
                                   recognized as an increase or decrease
                                   in interest income.


Cost_Of_Post_1991_Direct_Loans_6   The direct loan system must re-         DoDFMRVol12,Ch4,Sub040202D   FFMIA        Mandatory        FV        Record Loans and Grants
                                   estimate the subsidy cost allowance     SFFAS18,9
                                   for direct loans each year as of the
                                   date of the financial statements. This
                                   includes interest rate re-estimates and
                                   technical/default re-estimates. Each
                                   program re-estimate should be
                                   measured and disclosed in these two
                                   components separately.


Cost_Of_Post_1991_Direct_Loans_7   The system must record any increase DoDFMRVol12,Ch4,Sub040202D       FFMIA        Mandatory        FV        Record Loans and Grants
                                   or decrease in the subsidy cost      SFFAS18,9
                                   allowance resulting from the re-
                                   estimates as a subsidy expense (or a
                                   reduction in subsidy expense). The
                                   expense must be recorded for the
                                   current reporting period.




    July 29, 2009                                                        Business Transformation Agency                                                      Page 99 of 742
                                                           Defense Financial Management Improvement Guidance

           Rule Name                         Rule Description                   Primary Reference        Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Cost_Of_Post_1991_Direct_Loans_8   The system must record interest         DoDFMRVol12,Ch4,Sub040202F   FFMIA        Mandatory        FV        Record Loans and Grants
                                   accrued on direct loans, including      SFFAS2,37
                                   amortized interest, as interest income.

Cost_Of_Post_1991_Direct_Loans_9   The system must record interest due    DoDFMRVol12,Ch4,Sub040202F    FFMIA        Mandatory        FV        Record Loans and Grants
                                   from the U.S. Treasury on uninvested   SFFAS2,37
                                   funds as interest income.

Customer_Order_Options_1           To support Customer Order Options, JFMIPSR-03-01,pg19,20             FFMIA        Mandatory        CSE       Monitor Contract or Order
                                   the Revenue System must provide the                                                                          Performance
                                   capability to process and track orders
                                   to determine order status and allow for
                                   detailed (by customer) and batched
                                   information required in RO-1 (see
                                   requirement 05.08.01). In a non-
                                   exchange revenue transaction, collect
                                   the same data a customer order
                                   provides in an exchange revenue
                                   transaction (see examples of non-
                                   exchange revenues). Customer order
                                   data is to be retained to capture an
                                   order's entire history for handling
                                   inquiries and providing an audit trail.
                                   OMB's Business Rules for
                                   Intragovernmental Transactions, (M-03-
                                   01), requirements must also be
                                   supported (i.e., providing DUNS
                                   numbers, order numbers, standard
                                   data elements for billing records, and
                                   others). Also, customer order data is
                                   to be filed in accordance with National
                                   Archives and Records Administration
                                   (NARA) regulations for the required
                                   time frames based on the type of
                                   record and activity.




    July 29, 2009                                                         Business Transformation Agency                                                     Page 100 of 742
                                                      Defense Financial Management Improvement Guidance

            Rule Name                 Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Customer_Order_Options_2   To support Customer Order Options, JFMIPSR-03-01,pg19,20            FFMIA         Mandatory        CSE       Monitor Contract or Order
                           the Revenue System must provide the                                                                          Performance
                           capability to ensure that order
                           fulfillment and revenue can be
                           associated with a specific
                           Intragovernmental order, the seller
                           must capture the buyer's
                           Intragovernmental order number in the
                           seller's order fulfillment or revenue
                           system to associate the buyer's order
                           number with any agreement or control
                           number assigned by the seller's
                           system.

Customer_Order_Options_3   To support Customer Order Options,        JFMIPSR-03-01,pg20        FFMIA         Value Added      FV        Capture Receivable Request
                           the Revenue System should provide                                                                            Information
                           the capability to receive customer
                           orders via Internet.

Customer_Order_Options_4   To support Customer Order Options,        JFMIPSR-03-01,pg20        FFMIA         Value Added      FV        Establish Customer Information
                           the Revenue System should provide
                           an integrated customer management
                           relationship to establish a single view
                           of account information.


Death_Benefits_1           To support the Application Information JFMIPSR-01-01,pg45           FFMIA         Mandatory        PV        Manage Benefits
                           Store data requirements relative to                                                                          Manage Human Resources
                           systems used in administering death                                                                          Compensation and Reimbursements
                           benefit programs, the benefit system                                                                         Separate or Terminate Human
                           must capture:                                                                                                Resources
                           • Claimant's relation to claim holder.
                                                                      Sustain Human Resources
                           • Dates of creditable employment of
                           the claim holder (and military service
                           when used in determining eligibility
                           and the amount of benefits).
                           • Claimant dependency information,
                           when such affects the benefit
                           amount.
                           • Date married, when applicable.

                           • Date divorced when applicable.

                           • Date of claim holder death.




    July 29, 2009                                                    Business Transformation Agency                                                  Page 101 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Deferred_Maintenance_And_Cleanup_ The system shall recognize and record DoDFMRVol4,Ch13,Sub130202B   FFMIA         Mandatory        FV        Develop or Collect Environmental
Costs_1                           the following total estimated cost of     SFFAS6,94                                               RPA       Liability Documentation
                                  environmental liabilities associated                                                                        Manage Liabilities
                                  with General PP&E placed in service                                                                         Post to General Ledger
                                  prior to October 1, 1997:
                                  (a) In the initial year the liability is
                                  recorded, unless the costs are
                                  intended to be recovered through user
                                  charges.
                                  (b) If the costs are intended to be
                                  recovered through user charges, then
                                  the DoD Components shall recognize
                                  a liability for that portion of the asset
                                  that has passed since the PP&E was
                                  placed into service in the initial year
                                  the liability is recorded. The remaining
                                  liability shall be systematically
                                  recognized over the remaining useful
                                  life.
                                  The property system must recognize
                                  the estimated environmental liabilities
                                  associated with General PP&E placed
                                  in service after September 30, 1997,
                                  that have future environmental closure
                                  and/or environmental cleanup
                                  requirements, over the useful life. The
                                  accumulation of the liability and the
                                  recognition of the related expense
                                  shall commence when it is placed in
                                  service, continue in each period that
                                  operation continues, and be completed
                                  when the General PP&E ceases
                                  operation.




Deferred_Maintenance_And_Cleanup_ The property system may stratify         SFFAS6,84                 FFMIA         Value Added      AV        Maintain Asset Information
Costs_10                          critical and non-critical amounts of                                                              RPA       Perform Construction Restoration
                                  maintenance needed to return each                                                                           Modernization
                                  major class of asset to its acceptable
                                  operating condition.




    July 29, 2009                                                          Business Transformation Agency                                                  Page 102 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Deferred_Maintenance_And_Cleanup_ For stewardship PP&E that are in        DoDFMRVol6B,Ch14,Sub1407    FFMIA        Mandatory        FV        Perform Financial Reporting
Costs_11                          service at the effective date of SFFAS- SFFAS6,106                                                RPA       Post to General Ledger
                                  6 (beginning after September 30,                                                                            Provide Information for Environmental
                                  1997), the system must recognize a                                                                          Liability Form and Content
                                  liability for cleanup costs and an
                                  adjustment must be made to the Net
                                  Position of the entity. The amount of
                                  the adjustment shall be shown as a
                                  "prior period adjustment" in any
                                  statement of changes in net position
                                  that may be required. No amounts
                                  should be recognized as expense in
                                  the period of implementation. The
                                  amounts involved should be disclosed
                                  and, to the extent possible, the amount
                                  associated with current and prior
                                  periods should be noted.




Deferred_Maintenance_And_Cleanup_ The system shall allow an entity to      DoDFMRVol6B,Ch14,Sub1407   FFMIA        Mandatory        FV        Perform Financial Reporting
Costs_12                          record an offsetting charge, for any     SFFAS6,105                                                         Post to General Ledger
                                  General PP&E Cleanup Cost liability
                                  recognized upon implementation, to
                                  its' Statement of Changes in Net
                                  Position.
Deferred_Maintenance_And_Cleanup_ An entity must show, as a prior period DoDFMRVol6B,Ch14,Sub1407     FFMIA        Mandatory        FV        Perform Financial Reporting
Costs_13                          adjustment in its Statement of           SFFAS6,105
                                  Changes in Net Position, the amount
                                  of the liability due to implementing the
                                  cleanup costs standard in SFFAS-6.
                                  The amounts involved shall be
                                  disclosed and, to the extent possible,
                                  the amount associated with current
                                  and prior periods should be noted. The
                                  system shall not recognize any
                                  amount as an expense in the period of
                                  implementation.


Deferred_Maintenance_And_Cleanup_ The property management system           JFMIPSR-00-4,pg19          FFMIA        Value Added      AV        Maintain Asset Information
Costs_14                          may provide the capability to forecast                                                            RPA
                                  or schedule maintenance
                                  requirements for future periods.


    July 29, 2009                                                          Business Transformation Agency                                                  Page 103 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Deferred_Maintenance_And_Cleanup_ At a minimum, the system must          DoDFMRVol4,Ch6,Sub060109D   FFMIA        Mandatory        AV        Maintain Asset Information
Costs_15                          present deferred maintenance in the    SFFAS14,8                                                 FV        Perform Financial Reporting
                                  financial statements as required                                                                 RPA
                                  supplementary information for all
                                  General PP&E including identification
                                  of each major class of asset for which
                                  maintenance has been deferred and
                                  the method of measuring deferred
                                  maintenance for each major class of
                                  PP&E.


Deferred_Maintenance_And_Cleanup_ The system must capture                JFMIPSR-00-4,pg17           FFMIA        Mandatory        AV        Maintain Asset Information
Costs_16                          management's estimate of deferred                                                                RPA       Perform Installations Support
                                  maintenance. This may be
                                  accomplished through a process or
                                  system other than in a property
                                  system.
Deferred_Maintenance_And_Cleanup_ The property management system         JFMIPSR-00-4,pg18           FFMIA        Mandatory        AV        Maintain Asset Information
Costs_17                          must capture management's                                                                        RPA
                                  assessment of property condition. This
                                  may be accomplished through a
                                  process or system other than in a
                                  property system.
Deferred_Maintenance_And_Cleanup_ The system must capture the total        JFMIPSR-00-4,pg18         FFMIA        Mandatory        FV        Develop or Collect Environmental
Costs_19                          estimated clean-up cost when the item                                                            RPA       Liability Documentation
                                  is placed in service if the PP&E meets                                                                     Manage Liabilities
                                  the criteria established in paragraph 88                                                                   Post to General Ledger
                                  of SFFAS No. 6. This may be
                                  accomplished through a process or
                                  system other than in a property
                                  system.




    July 29, 2009                                                        Business Transformation Agency                                                    Page 104 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Deferred_Maintenance_And_Cleanup_ Environmental cost estimates shall be                              FFMIA         Mandatory        RPA       Develop or Collect Environmental
Costs_2                           reviewed annually and revised when       SFFAS6,96                                                          Liability Documentation
                                  there is evidence that significant
                                  changes in the cost measurement
                                  have occurred, such as changes in
                                  scope, ownership, regulation, or
                                  technology. As a minimum, long-term
                                  cost estimates shall be adjusted
                                  upward or downward annually, through
                                  indexing, to maintain them on a
                                  current cost basis as if acquired in the
                                  current period.


Deferred_Maintenance_And_Cleanup_ The system must capture                  JFMIPSR-00-4,pg18         FFMIA         Mandatory        FV        Develop or Collect Environmental
Costs_20                          environmental liabilities associated                                                              RPA       Liability Documentation
                                  with PP&E when an event has                                                                                 Manage Liabilities
                                  occurred and the liability is probable                                                                      Post to General Ledger
                                  and estimable. This may be
                                  accomplished through a process or
                                  system other than in a property
                                  system.
Deferred_Maintenance_And_Cleanup_ The system must calculate the annual JFMIPSR-00-4,pg18             FFMIA         Mandatory        FV        Develop or Collect Environmental
Costs_21                          amortization of estimated material,                                                               RPA       Liability Documentation
                                  clean-up costs, and the unamortized                                                                         Manage Liabilities
                                  balance for general PP&E.                                                                                   Post to General Ledger




    July 29, 2009                                                          Business Transformation Agency                                                  Page 105 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Deferred_Maintenance_And_Cleanup_ The system must estimate                                             DFMIR         Mandatory        RPA       Develop or Collect Environmental
Costs_22                          environmental liability cost                                                                                  Liability Documentation
                                  measurements for each environmental
                                  site located at an installation or
                                  organizational level. The liability cost
                                  estimates should include the
                                  anticipated costs of the level of effort
                                  required to cleanup hazardous wastes,
                                  as well as the costs of complying with
                                  associated applicable legal and/or
                                  regulatory requirements. Such cost
                                  estimates are calculated on a current
                                  cost basis and based on a current
                                  decontamination and/or disposal plan,
                                  existing laws, and technology. The
                                  cost estimates for both the
                                  environmental and non-environmental
                                  portion of the liability should include
                                  the following cost elements, as
                                  applicable:
                                  1. Compensation and benefits of
                                  government personnel expected to
                                  devote significant time directly to a
                                  disposal effort to include security and
                                  surveillance.
                                  2. Efforts to tear down, remove, and
                                  dispose of the item(s) to include
                                  transportation, demilitarization, and
                                  dismantlement.
                                  3. Planning and design efforts to
                                  include contract advertisement and
                                  document reproduction.
                                  4. Landscaping costs.
                                  5. Permits, licenses, and approval to
                                  include State Historic Preservation
                                  Officer concurrence and
                                  documentation. Also included are
                                  screening costs of suitable property for
                                  the homeless as established by the
Deferred_Maintenance_And_Cleanup_ The system shall maintain an                                         DFMIR         Mandatory        RPA       Develop or Collect Environmental
Costs_23                          inventory of environmental sites and                                                                          Liability Documentation
                                  reconcile it with PP&E records at least
                                  annually.




    July 29, 2009                                                            Business Transformation Agency                                                  Page 106 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Deferred_Maintenance_And_Cleanup_ During each period that general PP&E DoDFMRVol4,Ch13,Sub130202     FFMIA        Mandatory        FV        Develop or Collect Environmental
Costs_3                           is in operation, the system must record                                                          RPA       Liability Documentation
                                  a portion of the estimated total cleanup SFFAS6,97                                                         Post to General Ledger
                                  costs as an expense. This expense         SFFAS6,98
                                  allocation must be done in a
                                  systematic and rational manner based
                                  on the use or physical capacity of the
                                  associated PP&E, whenever possible.
                                  If physical capacity is not applicable or
                                  estimable, the estimated useful life of
                                  the associated PP&E may serve as
                                  the basis for systematic and rational
                                  recognition of expenses and
                                  accumulation of the liability.
                                  Recognition of the expense and
                                  accumulation of the liability shall begin
                                  on the date that the PP&E is placed
                                  into service, continue in each period
                                  that operation continues, and be
                                  completed when the PP&E ceases
                                  operation.




Deferred_Maintenance_And_Cleanup_ The system should allow estimated                                  FFMIA        Mandatory        FV        Develop or Collect Environmental
Costs_4                           environmental liabilities to be reduced SFFAS6,100                                               RPA       Liability Documentation
                                  by the costs that are paid to reflect the                                                                  Manage Liabilities
                                  total remaining cleanup costs less any                                                                     Perform Financial Reporting
                                  unrecognized portions of a                                                                                 Post to General Ledger
                                  systematically recognized cost
                                  estimate. Further, the DoD Component
                                  should be able to distinguish between
                                  the current and non-current portions of
                                  the liability estimate.



Deferred_Maintenance_And_Cleanup_ The system must recognize the         DoDFMRVol4,Ch13,Sub130202B   FFMIA        Mandatory        FV        Develop or Collect Environmental
Costs_5                           estimated environmental liabilities   SFFAS6,101                                                 RPA       Liability Documentation
                                  associated with cleanup cost for                                                                           Manage Liabilities
                                  Stewardship PP&E in the period that                                                                        Post to General Ledger
                                  the asset is placed into service.




    July 29, 2009                                                       Business Transformation Agency                                                    Page 107 of 742
                                                               Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                     Primary Reference       Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Deferred_Maintenance_And_Cleanup_ The must system record the                  DoDFMRVol4,Ch13,Sub130202D   FFMIA        Mandatory        FV        Manage Liabilities
Costs_6                           cumulative effect of changes in cost        SFFAS6,102                                                 RPA       Post to General Ledger
                                  estimates by recognizing an expense                                                                              Provide Information for Environmental
                                  in the current accounting period and                                                                             Liability Form and Content
                                  adjusting the corresponding liability.
                                  Additionally, the related cleanup cost
                                  for the current period shall be
                                  expensed and accrued as an
                                  environmental liability.


Deferred_Maintenance_And_Cleanup_ The system must disclose the method DoDFMRVol4,Ch13,Sub130203            FFMIA        Mandatory        FV        Develop or Collect Environmental
Costs_7                           for assigning estimated total cleanup SFFAS6,108                                                       RPA       Liability Documentation
                                  costs to current operating periods.                                                                              Perform Financial Reporting

Deferred_Maintenance_And_Cleanup_ The system must disclose material       DoDFMRVol4,Ch13,Sub130203        FFMIA        Mandatory        FV        Develop or Collect Environmental
Costs_8                           changes in the total estimated cleanup SFFAS6,110                                                      RPA       Liability Documentation
                                  costs due to changes in laws,                                                                                    Perform Financial Reporting
                                  technology, or plans and the portion of
                                  the changes in estimated costs due to
                                  changes in laws and technology that is
                                  related to prior periods.


Deferred_Maintenance_And_Cleanup_ The system must disclose the nature         DoDFMRVol4,Ch13,Sub130203    FFMIA        Mandatory        FV        Develop or Collect Environmental
Costs_9                           of estimates and the disclosure of          SFFAS6,111                                                 RPA       Liability Documentation
                                  information regarding possible                                                                                   Perform Financial Reporting
                                  changes due to inflation, deflation,
                                  technology, or applicable laws and
                                  regulations.
Deposit_Account_Function_1           To support the Deposit Account           JFMIPSR-03-01,pg27,28        FFMIA        Mandatory        FV        Post to General Ledger
                                     Function, the Revenue System must                                                                             Record and Manage Receivable
                                     provide the capability to create a new
                                     deposit account (escrow account)
                                     record with data element fields
                                     required in RO-1 (see requirement
                                     05.08.01) to record account history
                                     and activity.




    July 29, 2009                                                             Business Transformation Agency                                                    Page 108 of 742
                                                      Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Deposit_Account_Function_2   To support the Deposit Account         JFMIPSR-03-01,pg27,28      FFMIA        Mandatory        FV        Post to General Ledger
                             Function, the Revenue System must                                                                         Record and Manage Receivable
                             provide the capability to provide
                             access to update deposit account
                             records for both active and inactive
                             deposit accounts. Modifications to any
                             deposit account data will be date
                             effective.


Deposit_Account_Function_3   To support the Deposit Account          JFMIPSR-03-01,pg27,28     FFMIA        Mandatory        FV        Post to General Ledger
                             Function, the Revenue System must                                                                         Record and Manage Receivable
                             provide the capability to close a
                             deposit account. The system will
                             record the disposition of any remaining
                             balance. Closed deposit account
                             records will be archived.
Deposit_Account_Function_4   To support the Deposit Account         JFMIPSR-03-01,pg27,28      FFMIA        Mandatory        FV        Post to General Ledger
                             Function, the Revenue System must                                                                         Record and Manage Receivable
                             provide the capability to process
                             remittances to and charges against a
                             deposit account. Remittances will be
                             processed in the same record format
                             as a payment.


Deposit_Account_Function_5   To support the Deposit Account            JFMIPSR-03-01,pg27,28   FFMIA        Mandatory        FV        Perform Financial Reporting
                             Function, the Revenue System must                                                                         Record and Manage Receivable
                             provide the capability to provide
                             monthly statements of transaction
                             activity in paper and/or electronic form.


Deposit_Account_Function_6   To support the Deposit Account            JFMIPSR-03-01,pg27,28   FFMIA        Mandatory        FV        Record and Manage Receivable
                             Function, the Revenue System must
                             provide the capability to notify
                             customers (if specified) if their deposit
                             account balance drops below a certain
                             dollar amount.




    July 29, 2009                                                   Business Transformation Agency                                                 Page 109 of 742
                                                      Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Deposit_Account_Function_7   To support the Deposit Account            JFMIPSR-03-01,pg27,28   FFMIA        Mandatory        FV        Record and Manage Receivable
                             Function, the Revenue System must
                             provide the capability to validate
                             accounts by not accepting a
                             transaction for a charge against a
                             deposit account until the system has
                             determined that the account number is
                             valid, not delinquent, and has a
                             sufficient balance to cover the charge.
                             If the balance is not sufficient to cover
                             the charge, the system must send
                             notification to the customer and a
                             notice permitting/delaying service to
                             be rendered. Any deposit account
                             transaction that causes an overdrawn
                             balance without notification shall be
                             rejected by the system.




Deposit_Account_Function_8   To support the Deposit Account           JFMIPSR-03-01,pg27,28    FFMIA        Mandatory        FV        Calculate Penalty
                             Function, the Revenue System must
                             provide the capability to apply penalty
                             charges for deposit account balances
                             that fall below a predetermined level at
                             any point in time or at a predetermined
                             point, such as at the end of a month.
                             The predetermined level and
                             assessment date may vary by deposit
                             account type. These penalty charges
                             shall be automatically assigned by the
                             system.




    July 29, 2009                                                  Business Transformation Agency                                                   Page 110 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Depreciate_Amortize_Deplete_Asset_ The property system must calculate        DoDFMRVol4,Ch6,Sub060205A   FFMIA        Mandatory        AV        Maintain Asset Information
1                                  depreciation/ amortization expense        DoDFMRVol4,Ch6,Sub060205B                                 FV        Post to General Ledger
                                   through the systematic and rational       DoDFMRVol4,Ch6,Sub060205C                                 RPA
                                   allocation of the cost of general PP&E,   SFFAS6,35
                                   less the estimated salvage/residual
                                   value, over the estimated useful life.
                                   Within the DoD, straight-line
                                   depreciation method must be used
                                   with the exception of military
                                   equipment where activity-based
                                   depreciation may be used.
                                   Depreciation expense shall be
                                   recognized on all PP&E, except land
                                   and land rights of unlimited duration.
                                   Any changes in estimated life or
                                   salvage/residual value must be treated
                                   prospectively. The change must be
                                   accounted for in the period of the
                                   change and in future periods. No
                                   adjustments should be made to
                                   previously recorded depreciation or
                                   amortization.




Depreciate_Amortize_Deplete_Asset_ The property system must provide an       JFMIPSR-00-4,pg17           FFMIA        Mandatory        AV        Maintain Asset Information
10                                 audit trail for amortization, depletion                                                             RPA
                                   and depreciation expense.

Depreciate_Amortize_Deplete_Asset_ The property system must be able to       DoDFMRVol4,Ch6,Sub060205J   FFMIA        Mandatory        AV        Maintain Asset Information
2                                  record the estimated useful life of an    DoDFMRVol4,Ch6,Sub060205B                                 RPA
                                   asset for depreciation purposes based     DoDFMRVol4,Ch6,Sub060205C
                                   on the DoD standard recovery period       DoDFMRVol4,Ch6,Sub060205F
                                   except for military equipment. For        JFMIPSR-00-4,pg17
                                   military equipment the system must be
                                   able to accept any useful life based on
                                   an engineering assessment.




    July 29, 2009                                                            Business Transformation Agency                                                   Page 111 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Depreciate_Amortize_Deplete_Asset_ The property system must accumulate SFFAS6,36                      FFMIA        Mandatory        AV        Maintain Asset Information
3                                  depreciation expense in a contra asset                                                           FV        Post to General Ledger
                                   account: accumulated depreciation. It                                                            RPA
                                   must also accumulate amortization
                                   expense in a contra asset account:
                                   accumulated amortization


Depreciate_Amortize_Deplete_Asset_ The property system should record      DoDFMRVol4,Ch6,Sub060205C   FFMIA        Mandatory        AV        Maintain Asset Information
4                                  accumulated depreciation/              SFFAS6,41                                                 FV        Post to General Ledger
                                   amortization based on the recorded                                                               RPA
                                   cost and the number of periods (time
                                   or usage data) in which the general
                                   PP&E has been in use relative to its
                                   estimated useful live


Depreciate_Amortize_Deplete_Asset_ For accountability and financial    DoDFMRVol4,Ch6,Sub060105A      DFMIR        Mandatory        AV        Maintain Asset Information
5                                  reporting purposes, the property                                                                 FV        Perform Financial Reporting
                                   system must recognize the proper                                                                 RPA
                                   accounting treatment (expense or
                                   capitalization and depreciation or
                                   amortization) and the reporting of
                                   capitalized amounts and accumulated
                                   depreciation or amortization on the
                                   appropriate DoD Component's
                                   financial statements.


Depreciate_Amortize_Deplete_Asset_ The property system must be able to DoDFMRVol4,Ch6,Sub060207       DFMIR        Mandatory        AV        Maintain Asset Information
6                                  depreciate capital lease assets for                                                              FV        Post to General Ledger
                                   those activities authorized to enter into                                                        RPA
                                   capital lease agreements.

Depreciate_Amortize_Deplete_Asset_ The property management system         JFMIPSR-00-4,pg19           FFMIA        Mandatory        AV        Maintain Asset Information
7                                  may calculate depreciation on asset
                                   pools.




    July 29, 2009                                                         Business Transformation Agency                                                   Page 112 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference          Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Depreciate_Amortize_Deplete_Asset_ The property management system             DoDFMRVol4,Ch6,Sub060204A   FFMIA        Mandatory        AV        Maintain Asset Information
8                                  shall capitalize the costs to improve a SFFAS6,37                                                    FV        Post to General Ledger
                                   General PP&E asset when the costs of                                                                 RPA
                                   the improvement increase the General
                                   PP&E asset's capability, size,
                                   efficiency, or useful life or modifies
                                   functionality. In addition, the cost of an
                                   improvement shall be capitalized only
                                   when the cost of the improvement
                                   equals or exceeds DoD capitalization
                                   threshold



Depreciate_Amortize_Deplete_Asset_ The system must record a lease as       DoDFMRVol4,Ch6,Sub060206E      FFMIA        Mandatory        AV        Maintain Asset Information
9                                  capital lease if the lease meets the    SFFAS6,20                                                    FV        Post to General Ledger
                                   following four criteria (otherwise, it                                                               RPA
                                   should be classified as an operating
                                   lease):
                                   • The lease transfers ownership of the
                                   property to the lessee by the end of
                                   the lease term.
                                   • The lease contains an option to
                                   purchase the leased property at a
                                   bargain price.
                                   • The lease term is equal to or greater
                                   than 75 percent of the estimated
                                   economic life of the leased property.
                                   • The present value of rental and other
                                   minimum lease payments, excluding
                                   that portion of the payments
                                   representing executory cost, equals or
                                   exceeds 90 percent of the fair value of
                                   the leased property.
                                   • The last two criteria are not
                                   applicable when the beginning of the
                                   lease term falls within the last 25
                                   percent of the total estimated
                                   economic life of the leased property.




    July 29, 2009                                                        Business Transformation Agency                                                        Page 113 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Account_Billing_And_Col The direct loan system must calculate JFMIPSR-99-8               FFMIA        Mandatory        FV        Record Loans and Grants
lection_1                           outstanding balances for each loan
                                    account invoiced. The calculation must
                                    include principal, interest, late
                                    charges, and other amounts due.


Direct_Loan_Account_Billing_And_Col The direct loan system must be able to JFMIPSR-99-8              FFMIA        Mandatory        FV        Record Loans and Grants
lection_10                          provide a means for debtors to inquire
                                    into their account status such as
                                    electronic inquiry using a secure
                                    internet WEB site or an automated
                                    telephone program such as a voice
                                    response unit.


Direct_Loan_Account_Billing_And_Col The direct loan system must be able to JFMIPSR-99-8              FFMIA        Mandatory        FV        Record Loans and Grants
lection_11                          apply components of payment
                                    (principle, interest, late fees) in
                                    accordance with established business
                                    rules.
Direct_Loan_Account_Billing_And_Col The direct loan system must be          JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
lection_12                          capable of automatically capitalizing
                                    interest in accordance with established
                                    policy.
Direct_Loan_Account_Billing_And_Col The direct loan system must be able to JFMIPSR-99-8              FFMIA        Mandatory        FV        Record Loans and Grants
lection_13                          provide an electronic means to receive
                                    payments such as Automated Clearing-
                                    house (ACH) and Electronic Debit
                                    Account (EDA).


Direct_Loan_Account_Billing_And_Col The direct loan system must identify  JFMIPSR-99-8               FFMIA        Mandatory        FV        Record Loans and Grants
lection_2                           loan accounts to be invoiced based on
                                    agency program invoicing criteria and
                                    other loan account information, such
                                    as amount outstanding, most recent
                                    payment, payment amount due, and
                                    date due.




    July 29, 2009                                                         Business Transformation Agency                                                 Page 114 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Account_Billing_And_Col The direct loan system must provide      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
lection_3                           the capability to analyze escrow
                                    balances to adjust required deposit
                                    amounts. This will help prevent
                                    deficiencies in tax and insurance
                                    deposits and payments for housing
                                    and other long-term real estate loans.


Direct_Loan_Account_Billing_And_Col The direct loan system must generate JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
lection_4                           and transmit a bill, payment coupon,
                                    invoice or other document that shows
                                    the borrower ID, amount due, date
                                    due, the date after which the payment
                                    will be considered late, and the current
                                    balance.


Direct_Loan_Account_Billing_And_Col The direct loan system must apply any JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
lection_5                           collections, using the agency's
                                    program receipt application rules, to
                                    the appropriate liquidating or financing
                                    account. Collection sources could
                                    include cash, pre-authorized debit,
                                    check, or credit card.


Direct_Loan_Account_Billing_And_Col The direct loan system must record a JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
lection_6                           prepayment (the early payoff of the
                                    entire loan balance or paying more
                                    than the scheduled monthly payment),
                                    a partial, full, or late payment indicator.


Direct_Loan_Account_Billing_And_Col The direct loan system must identify     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
lection_7                           payments that cannot be applied and
                                    document why the payments cannot
                                    be applied.
Direct_Loan_Account_Billing_And_Col The direct loan system must be able to JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
lection_8                           compare a borrower's pre-authorized
                                    debits, received from financial
                                    institutions and other external sources,
                                    to expected collections.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 115 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Account_Billing_And_Col The direct loan system must provide   JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
lection_9                           an automated interface with the Core
                                    Financial System to record the
                                    collection. If the direct loan system
                                    itself handles the collection
                                    processing, it must meet the
                                    requirements in the "Core Financial
                                    System Requirements" related to this
                                    activity and send summary data to the
                                    Core Financial System.


Direct_Loan_Account_Status_Mainten The direct loan system must support    JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
ance_1                             evaluation of accounts proposed for
                                   modification by the agency or borrower
                                   by comparing loan data to the
                                   agency's program loan modification
                                   criteria.
Direct_Loan_Account_Status_Mainten The direct loan system must track the JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
ance_10                            status of all loan accounts by
                                   summarizing loan activity at various
                                   critical points of the loan cycle such as
                                   status, i.e. current, delinquent, in
                                   collection, etc.
Direct_Loan_Account_Status_Mainten The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
ance_11                            maintain a link between the new loan
                                   account established for the new debt
                                   instrument and the old loan account
                                   records.
Direct_Loan_Account_Status_Mainten The direct loan system must provide     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
ance_12                            information as a hard copy or through
                                   system queries
Direct_Loan_Account_Status_Mainten The direct loan system must calculate JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
ance_2                             rescheduled loan terms, including
                                   repayment amounts and schedules,
                                   where appropriate. It must also
                                   calculate any change in the subsidy
                                   amount as a result of the loan
                                   modifications.
Direct_Loan_Account_Status_Mainten The direct loan system must perform a JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
ance_3                             funds control check through an
                                   automated interface with the Core
                                   Financial System to verify the
                                   availability of a subsidy.

    July 29, 2009                                                          Business Transformation Agency                                                 Page 116 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Account_Status_Mainten The direct loan system must produce        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
ance_4                             selected loan account information
                                   listings for review by internal
                                   modification groups.
Direct_Loan_Account_Status_Mainten The direct loan system must establish JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
ance_5                             a new loan account and collateral
                                   record for each new debt instrument
                                   and assign a unique loan account
                                   number to the new account record.


Direct_Loan_Account_Status_Mainten The direct loan system must update        JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
ance_6                             the loan information store to reflect the
                                   modified status of the loan, including
                                   changes in the value or status of any
                                   collateral.
Direct_Loan_Account_Status_Mainten The direct loan system must provide        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
ance_7                             an automated interface with the Core
                                   Financial System to record pre-1992
                                   and post 1991 direct loan
                                   modifications.
Direct_Loan_Account_Status_Mainten The direct loan system must be able to JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
ance_8                             generate a new loan document, which
                                   displays information concerning both
                                   the original and modified direct loan.

Direct_Loan_Account_Status_Mainten The direct loan system must                JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
ance_9                             summarize payment activity to allow
                                   agency management to monitor the
                                   effectiveness of each activity in the
                                   collection process.
Direct_Loan_Application_Screening_1 The direct loan system must record        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                    critical credit application data needed
                                    to support application screening.




    July 29, 2009                                                             Business Transformation Agency                                                 Page 117 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Application_Screening_1 The direct loan system must document JFMIPSR-99-8                   FFMIA        Mandatory        FV        Record Loans and Grants
0                                   whether the Credit Alert Interactive
                                    Voice Response System (CAIVRS)
                                    identified the applicant as a borrower
                                    who is delinquent or has defaulted on
                                    a previous federal debt. The system
                                    should allow override if the agency
                                    determines that the account was
                                    referred to CAIVRS in error.



Direct_Loan_Application_Screening_1 The direct loan system must provide     JFMIPSR-99-8                FFMIA        Mandatory        FV        Record Loans and Grants
1                                   the information needed to compute the OMBCIRA-11
                                    credit subsidy amount associated with SFFAS3
                                    a loan. It must do this by using
                                    projected cash flows and the
                                    applicable U.S. Treasury interest rate,
                                    in accordance with OMB Circular A-11,
                                    A-34, and SFFAS No. 2.


Direct_Loan_Application_Screening_1 The direct loan system must provide   JFMIPSR-99-8                  FFMIA        Mandatory        FV        Record Loans and Grants
2                                   an automated interface with the Core
                                    Financial System to determine if
                                    sufficient funds are available in the
                                    Program Account to cover the subsidy
                                    cost. It must also determine if
                                    available lending limits in the
                                    Financing Account are sufficient to
                                    cover the face value of the proposed
                                    loan.

Direct_Loan_Application_Screening_1 The direct loan system must provide        JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
3                                   an automated interface with the Core
                                    Financial System to be able to commit
                                    funds for the loan if funds control is not
                                    done within the DL system.


Direct_Loan_Application_Screening_1 The direct loan system must update      JFMIPSR-99-8                FFMIA        Mandatory        FV        Record Loans and Grants
4                                   the application information store to
                                    reflect the status of the loan.




    July 29, 2009                                                           Business Transformation Agency                                                  Page 118 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Application_Screening_1 The direct loan system must accept,      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
5                                   identify, track, and report supervisor
                                    overrides of system-generated
                                    acceptance/rejection
                                    recommendations.
Direct_Loan_Application_Screening_1 The direct loan system must create       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
6                                   and maintain a system record of
                                    accepted and rejected loan
                                    applications.
Direct_Loan_Application_Screening_1 The direct loan system must generate JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
7                                   a letter notifying the applicant of
                                    rejection or acceptance of the loan
                                    application.
Direct_Loan_Application_Screening_1 The direct loan system must be able to JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
8                                   provide for an electronic application
                                    process using various media, such as
                                    a secure internet application (WEB
                                    site).
Direct_Loan_Application_Screening_2 The direct loan system must provide      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                    access to application information to all
                                    agency staff participating in the
                                    screening and credit-granting
                                    decisions.
Direct_Loan_Application_Screening_3 The direct loan system must process JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
                                    and record collections of fees remitted
                                    with the application in both the direct
                                    loan system and the Core Financial
                                    System.
Direct_Loan_Application_Screening_4 The direct loan system must compare JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
                                    loan application information to agency
                                    program eligibility criteria.

Direct_Loan_Application_Screening_5 The direct loan system must check the JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
                                    appropriate system data files to
                                    determine whether the applicant has
                                    submitted a duplicate application or
                                    has had a recent loan application
                                    rejected. These situations may
                                    indicate attempts by applicants to
                                    subvert agency credit policies.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 119 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Application_Screening_6 The direct loan system must document JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
                                    that borrowers have certified that they
                                    have been unable to obtain credit from
                                    private financial sources, where such
                                    certification is a program requirement.



Direct_Loan_Application_Screening_7 The direct loan system must provide       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                    an automated interface with credit
                                    bureaus that allows an agency to
                                    obtain applicant credit history
                                    information (credit bureau report). For
                                    credit bureaus that do not have the
                                    capability for an automated interface,
                                    record credit history information
                                    entered by agency staff.


Direct_Loan_Application_Screening_8 The direct loan system must document JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
                                    that applicant financial data,
                                    repayment ability, and repayment
                                    history have been verified through the
                                    use of supplementary data sources
                                    such as employment and income data,
                                    financial statements, tax returns, and
                                    collateral appraisals, where this is a
                                    program requirement.


Direct_Loan_Application_Screening_9 The direct loan system must compare JFMIPSR-99-8                    FFMIA         Mandatory        FV        Record Loans and Grants
                                    the applicant's creditworthiness
                                    information to system-stored program
                                    creditworthiness criteria and, where a
                                    program requirement, calculate a
                                    credit risk rating for the applicant.



Direct_Loan_Cross_Servicing_1         The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
                                      identify the volume and type of debts
                                      serviced.
Direct_Loan_Cross_Servicing_10        The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
                                      compare delinquent loan account
                                      information to statutory criteria to
                                      select delinquent loan accounts for
                                      possible referral.

    July 29, 2009                                                             Business Transformation Agency                                                 Page 120 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                     Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Cross_Servicing_11   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 generate notification to the debtor of
                                 the agency's intent to refer the debt to
                                 a debt collection center.

Direct_Loan_Cross_Servicing_12   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 update the loan information store.

Direct_Loan_Cross_Servicing_13   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 identify accounts that can no longer be
                                 serviced by agency personnel.

Direct_Loan_Cross_Servicing_14   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 identify accounts with monetary
                                 adjustments that must be reported to
                                 the debt collection center.

Direct_Loan_Cross_Servicing_15   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 provide ad hoc reporting capability
                                 needed to monitor the accounts
                                 referred to a debt collection center and
                                 the amounts recovered.


Direct_Loan_Cross_Servicing_16   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 interface with the Core Financial
                                 System to record receipts remitted to
                                 the agency.
Direct_Loan_Cross_Servicing_17   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 apply collections received from the
                                 debt collection center according to
                                 agency application rules.

Direct_Loan_Cross_Servicing_18   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 record collection fees in accordance
                                 with agency program requirements.

Direct_Loan_Cross_Servicing_19   The direct loan system must be able to JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                 process agency or debt collection
                                 center refunds, notify debt collection
                                 center as appropriate, and update the
                                 loan information store.




    July 29, 2009                                                     Business Transformation Agency                                                 Page 121 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                      Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Cross_Servicing_2    The direct loan system must be able to JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                 identify the tools used by the agency
                                 to collect its own debt.
Direct_Loan_Cross_Servicing_20   The direct loan system must be able to JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                 notify debt collection center of
                                 adjustments, recall of debt, or
                                 collections received by the agency on
                                 the referred debt.
Direct_Loan_Cross_Servicing_21   The direct loan system must be able to JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                 remove from the accounting and
                                 financial records accounts that the
                                 debt collection center recommends
                                 should be written off.


Direct_Loan_Cross_Servicing_22   The direct loan system must maintain JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
                                 financial accounting information at
                                 appropriate levels of summary for
                                 computational and reporting purposes.

Direct_Loan_Cross_Servicing_23   The direct loan system must provide   JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                 information through hard copy or
                                 system queries.
Direct_Loan_Cross_Servicing_3    The direct loan system must be able to JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                 provide one or more years of
                                 information on the average age of debt
                                 over 180 days.
Direct_Loan_Cross_Servicing_4    The direct loan system must be able to JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                 calculate the amount of debt collected
                                 using various collection tools.

Direct_Loan_Cross_Servicing_5    The direct loan system must be able to JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                 accrue late charges, as required by
                                 referring agency.
Direct_Loan_Cross_Servicing_6    The direct loan system must be able to JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                 provide information to referring agency
                                 sufficient for the referring agency to
                                 satisfactorily complete the Report on
                                 Receivables Due From the Public.




    July 29, 2009                                                      Business Transformation Agency                                                 Page 122 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Cross_Servicing_7         The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                      track, by portfolio, age of debt referred,
                                      dollar and number of referrals,
                                      collections on referred debts and
                                      report to Treasury on a monthly basis.


Direct_Loan_Cross_Servicing_8         The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                      provide information to referring agency
                                      as needed, i.e. collections received.

Direct_Loan_Cross_Servicing_9         The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                      provide ad hoc reporting capability
                                      needed to satisfy referring agencies
                                      unique information requests such as,
                                      length of workout agreements, percent
                                      of debt that can be compromised, etc.



Direct_Loan_Delinquent_Debt_Collecti The direct loan system must identify    JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_1                          delinquent commercial and consumer
                                     accounts for reporting to credit
                                     bureaus (preferably by electronic
                                     interface) and CAIVRS by comparing
                                     reporting criteria to delinquent loan
                                     data.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must provide    JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_10                         automated support to the collection
                                     process. Support could be provided for
                                     activities such as contacting a
                                     delinquent borrower by phone;
                                     documenting contacts with a debtor
                                     and the results; documenting
                                     installment payments, rescheduling
                                     agreements, and debt compromise;
                                     generating management reports; and
                                     tracking the performance of individual
                                     agency collectors.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 123 of 742
                                                                Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must identify  JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_11                         accounts eligible for referral to the
                                     Treasury Offset Program (TOP), which
                                     is the administrative offset program
                                     administered by the Department of the
                                     Treasury.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must generate JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_12                         written notification to the borrower that
                                     includes the following: the nature and
                                     the amount of the debt; the intention of
                                     the agency to collect the debt through
                                     administrative offset; an explanation of
                                     the rights of the debtor; an offer to
                                     provide the debtor an opportunity to
                                     inspect and copy the records of the
                                     agency with respect to the debt; and
                                     an offer to enter into a written
                                     repayment agreement with the agency.




Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_13                         transmit to TOP eligible new debts,
                                     and increase, decrease, or delete
                                     previously reported debts
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must update      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_14                         the loan information store to reflect
                                     TOP status.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must update      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_15                         the Core Financial System to record
                                     collections from TOP.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must interface JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_16                         with the Core Financial System to
                                     record receipts remitted to the agency.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must compare JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_17                         delinquent account data to agency
                                     program collection agency referral
                                     criteria to select delinquent loan
                                     accounts for referral to collection
                                     agencies.



    July 29, 2009                                                            Business Transformation Agency                                                 Page 124 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must sort and JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_18                         group delinquent loan accounts based
                                     on type of debt (consumer or
                                     commercial), age of debt, and location
                                     of debtor.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must calculate JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_19                         outstanding interest, penalties, and
                                     administrative charges for each
                                     delinquent loan account to be referred.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must calculate JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_2                          outstanding balances, including
                                     interest, penalties, and administrative
                                     charges, and include this information
                                     in credit bureau reports.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must assign      JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_20                         selected delinquent loan account
                                     groupings to appropriate collection
                                     agencies based on collection agency
                                     selection criteria for agency programs.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must document JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_21                         that the delinquent account has been
                                     referred to a collection agency.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must generate JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_22                         and receive electronic transmissions of
                                     account balance data and status
                                     updates to and from collection
                                     agencies.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must record     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_23                         receipts remitted to the collection
                                     agency and forwarded to the agency.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must accept     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_25                         and match collection agency invoices
                                     with agency records.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_26                         request, reconcile, and record returned
                                     accounts from collection agencies.


    July 29, 2009                                                           Business Transformation Agency                                                 Page 125 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must interface JFMIPSR-99-8                FFMIA        Mandatory        FV        Record Loans and Grants
on_Action_27                         with the Core Financial System to be
                                     able to record collections processed
                                     through collection agencies.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must compare JFMIPSR-99-8                  FFMIA        Mandatory        FV        Record Loans and Grants
on_Action_28                         delinquent loan account information
                                     against the agency's litigation referral
                                     criteria to identify delinquent loan
                                     accounts eligible for referral. It must
                                     also support identification of accounts
                                     to be referred to counsel for filing of
                                     proof of claim based on documentation
                                     that a debtor has declared bankruptcy.



Direct_Loan_Delinquent_Debt_Collecti The direct loan system must provide      JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
on_Action_29                         an electronic interface with credit
                                     bureaus to obtain credit bureau reports
                                     that will enable assessment of the
                                     debtor's ability to repay before a claim
                                     is referred to legal counsel.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must generate JFMIPSR-99-8                 FFMIA        Mandatory        FV        Record Loans and Grants
on_Action_3                          (or include in demand letters) a notice
                                     to inform consumer borrowers of the
                                     referral of a delinquent debt to a credit
                                     bureau and CAIVRS in accordance
                                     with regulations.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must calculate JFMIPSR-99-8                FFMIA        Mandatory        FV        Record Loans and Grants
on_Action_30                         the outstanding balance, including
                                     principal, interest penalties, and
                                     administrative charges, for each
                                     delinquent loan account to be referred
                                     to legal counsel.




    July 29, 2009                                                          Business Transformation Agency                                                  Page 126 of 742
                                                                Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must generate JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_31                         the Claims Collection Litigation Report
                                     (CCLR). The CCLR is used to capture
                                     collection actions and current debtor
                                     information and transmit this
                                     information to Department of Justice
                                     (DOJ).


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must receive       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_32                         electronic transmissions of account
                                     data and status updates to and from
                                     the Department of Justice's Central
                                     Intake Facility, or the agency's Office
                                     of General Counsel's (OGC)
                                     automated system for referrals.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must update       JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_33                         the loan status to reflect referrals for
                                     litigation so that the loan can be
                                     excluded from other collection actions,
                                     and to alert the agency to obtain
                                     approval from counsel before
                                     accepting voluntary debtor payment.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must match       JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_34                         agency litigation referrals with the
                                     Department of Justice listing of agency
                                     litigation referrals.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must record        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_35                         and track recovery of judgment
                                     decisions.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must update        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_36                         the loan information store to reflect
                                     receipts and adjustments.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must interface JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_37                         with the Core Financial System to
                                     record any collections resulting from
                                     litigation.




    July 29, 2009                                                              Business Transformation Agency                                                 Page 127 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_38                         identify, at the end of the notification
                                     period, the debtors that remain
                                     delinquent and are eligible for referral.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_39                         offset delinquent debts internally
                                     before referral to TOP, where
                                     applicable.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must maintain   JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_4                          a record of each account reported to
                                     credit bureaus to allow tracking of
                                     referred accounts.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_40                         apply collections received through the
                                     TOP process to debtor accounts in
                                     accordance with applicable payment
                                     application rules.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_41                         record offset fees in accordance with
                                     agency program requirements.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_42                         process agency refunds given to
                                     borrowers erroneously, offset and
                                     transmit this information to Treasury in
                                     a timely manner.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_43                         record refunds given by US Treasury
                                     and adjust the loan information store
                                     accordingly.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_44                         generate written notice informing the
                                     borrower of the agency's intention to
                                     initiate proceedings to collect the debt
                                     through deductions from pay, the
                                     nature and amount of the debt to be
                                     collected, and the debtor's rights.




    July 29, 2009                                                           Business Transformation Agency                                                 Page 128 of 742
                                                                Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_45                         document that the wage garnishment
                                     order was sent to the employer.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_46                         provide ad hoc reporting capability
                                     needed to monitor the amounts
                                     recovered through non-Federal wage
                                     garnishment.
Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_47                         document that the agency provided
                                     debtors a hearing, when requested.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_48                         apply collections received through
                                     wage garnishment according to
                                     agency application rules.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_49                         generate payment to the collection
                                     agency for services rendered through
                                     the Core Financial System.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must prepare JFMIPSR-99-8                    FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_5                          data on appropriate medium, on a
                                     monthly basis, of delinquent debtors to
                                     be included in the CAIVRS database.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must be able to JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_50                         track filing of pleadings and other
                                     motions, including proofs of claims in
                                     bankruptcy, to ensure swift legal action
                                     and to monitor litigation activity.


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must generate JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_6                          and transmit dunning letters to debtors
                                     with past-due loan accounts.

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must identify      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_7                          debtors who do not respond to
                                     dunning letters within a specified time
                                     period.


    July 29, 2009                                                              Business Transformation Agency                                                 Page 129 of 742
                                                                Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Collecti The direct loan system must track         JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_8                          demand letters and borrower
                                     responses to document borrower due
                                     process notification (and borrower
                                     willingness and ability to repay debt).


Direct_Loan_Delinquent_Debt_Collecti The direct loan system must track and JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
on_Action_9                          document debtor appeals received in
                                     response to demand for payment.

Direct_Loan_Delinquent_Debt_Writeof The direct loan system must compare JFMIPSR-99-8                     FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_1                  delinquent loan account information to
                                    agency program write-off criteria to
                                    select delinquent loan accounts for
                                    possible write-off.


Direct_Loan_Delinquent_Debt_Writeof The direct loan system must update      JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_10                 the loan information store to reflect
                                    receipts, adjustments, and other status
                                    changes, including rescheduling,
                                    compromise, and other resolution
                                    decisions.


Direct_Loan_Delinquent_Debt_Writeof The direct loan system must retain        JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_11                 electronic summary records of closed
                                    out account activity for a period of five
                                    years for use in the agency's
                                    screening of new loan applications.


Direct_Loan_Delinquent_Debt_Writeof The direct loan system must have          JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_12                 indicators of the financial well-being of
                                    a debtor, including debtor financial
                                    statements, credit bureau reports, and
                                    payment receipt history.




    July 29, 2009                                                              Business Transformation Agency                                                 Page 130 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Writeof The direct loan system must be able to JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_13                 transmit information on interest paid
                                    and other reportable data to the IRS.
                                    The Debt Collection Improvement Act
                                    (DCIA) now authorizes agencies to
                                    report nondelinquent consumer and
                                    commercial debt to credit bureaus,
                                    providing that the agency has
                                    processed the necessary Privacy Act
                                    notices for consumer debt.


Direct_Loan_Delinquent_Debt_Writeof The direct loan system must classify     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_2                  debtors based on financial profile and
                                    ability to repay.
Direct_Loan_Delinquent_Debt_Writeof The direct loan system must produce JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_3                  a CCLR for each loan account to be
                                    referred to agency counsel or the
                                    Department of Justice for approval of
                                    termination of collection action. It must
                                    also update the loan status to reflect
                                    the referral.


Direct_Loan_Delinquent_Debt_Writeof The direct loan system must update       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_4                  the loan information store to reflect
                                    approval or disapproval by agency
                                    counsel or the Department of Justice
                                    for termination of collection action.


Direct_Loan_Delinquent_Debt_Writeof The direct loan system must update     JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_5                  the loan information store and provide
                                    an automated interface with the Core
                                    Financial System to record the write-
                                    off of the receivable.


Direct_Loan_Delinquent_Debt_Writeof The direct loan system must maintain JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_6                  a suspense file of inactive (written-off)
                                    loan accounts.
Direct_Loan_Delinquent_Debt_Writeof The direct loan system must reactivate JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_7                  written-off loan accounts at a system
                                    user's request if the debtor's financial
                                    status or the account status changes.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 131 of 742
                                                                 Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Delinquent_Debt_Writeof The direct loan system must compare JFMIPSR-99-8                     FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_8                  loan account data to agency closeout
                                    criteria to identify debtor accounts
                                    eligible for closeout and 1099-C
                                    reporting.
Direct_Loan_Delinquent_Debt_Writeof The direct loan system must prepare        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
fs_And_Closeouts_9                  and send a Form 1099-C to the IRS if
                                    the debtor has not responded within
                                    the required time period.

Direct_Loan_Foreclosure_Collateral_L The direct loan system must generate JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_1                         payments to property management
                                     contractors for services rendered.

Direct_Loan_Foreclosure_Collateral_L The direct loan system must track,        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_2                         record, and classify operations and
                                     maintenance expenses related to the
                                     acquired collateral.
Direct_Loan_Foreclosure_Collateral_L The direct loan system must document JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_3                         rental income and other collections
                                     related to the acquired collateral.

Direct_Loan_Foreclosure_Collateral_L The direct loan system must post the      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_4                         expenses and income to the Core
                                     Financial System through an
                                     automated interface.
Direct_Loan_Foreclosure_Collateral_L The direct loan system must update        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_5                         the loan information store to record
                                     receipts resulting from the liquidation
                                     of acquired collateral and the
                                     disposition of the collateral.


Direct_Loan_Foreclosure_Collateral_L The direct loan system must provide       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_6                         an automated interface to the Core
                                     Financial System and the property
                                     management system to record
                                     disposal of the property and
                                     associated receipts.
Direct_Loan_Foreclosure_Collateral_L The direct loan system must identify     JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_7                         any deficiency balances remaining for
                                     the loan after collateral liquidation to
                                     allow for further collection activities.


    July 29, 2009                                                              Business Transformation Agency                                                 Page 132 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Foreclosure_Collateral_L The direct loan system should provide JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
iquidation_8                         at least the following types of
                                     management information: detailed
                                     transaction history, standard
                                     management control or activity,
                                     exceptions, offsetting agency
                                     description, trend analysis or
                                     performance, collection contractor
                                     compensation, and collateral
                                     management activity and expense.


Direct_Loan_Foreclosure_On_Collater The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
al_1                                compare delinquent account data to
                                    collateral foreclosure selection criteria.

Direct_Loan_Foreclosure_On_Collater The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
al_10                               provide internal management
                                    information to agency credit program
                                    managers and designated internal
                                    review
Direct_Loan_Foreclosure_On_Collater The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
al_2                                sort and group selected delinquent
                                    accounts by type of collateral (single
                                    family or multifamily, commercial,
                                    farm, etc.), location, loan-to-value
                                    ratios, and the amount of debt.


Direct_Loan_Foreclosure_On_Collater The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
al_3                                calculate outstanding principal,
                                    interest, penalties, and administrative
                                    charges for each loan account
                                    selected for review for foreclosure.


Direct_Loan_Foreclosure_On_Collater The direct loan system must transmit a JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
al_4                                foreclosure notice to the borrower.

Direct_Loan_Foreclosure_On_Collater The direct loan system must transmit    JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
al_5                                information necessary for the
                                    foreclosure to the Department of
                                    Justice and/or the agency's Office of
                                    General Counsel, as applicable.




    July 29, 2009                                                           Business Transformation Agency                                                 Page 133 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Foreclosure_On_Collater The direct loan system must record     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
al_6                                the results of the foreclosure
                                    proceedings and title conveyance to
                                    the agency.
Direct_Loan_Foreclosure_On_Collater The direct loan system must provide JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
al_7                                an automated interface of data on
                                    acquired collateral to the property
                                    management system for management
                                    and liquidation of the property.


Direct_Loan_Foreclosure_On_Collater The direct loan system must provide   JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
al_8                                an automated interface to the Core
                                    Financial System that permits it to
                                    record the value of the property
                                    acquired and to reduce the receivable
                                    amount.
Direct_Loan_Foreclosure_On_Collater The direct loan system must be able to JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
al_9                                generate or provide the information
                                    needed to manually prepare IRS Form
                                    1099-A, Acquisition or Abandonment
                                    of Secured Property.


Direct_Loan_Origination_1            The direct loan system must record    JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                     loan terms and calculate disbursement
                                     schedules and repayment amounts
                                     and schedules as needed.

Direct_Loan_Origination_10           The direct loan system must provide   JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                     the capability to cancel, thus de-
                                     obligating, undisbursed loans.

Direct_Loan_Origination_11           The direct loan system must update    JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                     debtor accounts to reflect
                                     management override of offsets.




    July 29, 2009                                                          Business Transformation Agency                                                 Page 134 of 742
                                                      Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Origination_12   The direct loan system must record    JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
                             important information needed for each
                             loan disbursement, including the
                             amount and applicable Treasury
                             interest rates (to support the
                             computation of accrued interest
                             expense on borrowings from the US
                             Treasury), and subsidy re-estimates.



Direct_Loan_Origination_13   The direct loan system must support     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                             the calculation of borrowings. The
                             actual organization of the system
                             processes between the direct loan
                             system and Core Financial System is
                             at the discretion of the agency.


Direct_Loan_Origination_14   The direct loan system must provide     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                             an automated interface with the Core
                             Financial System to initiate and record
                             the disbursement by cohort, establish
                             the receivable, and record the
                             movement of the subsidy funds from
                             the Program account to the Financing
                             Account.


Direct_Loan_Origination_15   The direct loan system must capture     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                             the estimated useful economic life of
                             any pledged collateral and compare it
                             to the proposed term of the loan.

Direct_Loan_Origination_16   The direct loan system must document JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
                             that transactions over a pre-
                             determined amount have had a
                             collateral appraisal by a licensed or
                             certified appraiser.
Direct_Loan_Origination_17   The direct loan system must compute JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
                             the loan-to-value ratio and flag those
                             loans with a ratio exceeding 100% (or
                             more stringent standards set by the
                             agency).




    July 29, 2009                                                    Business Transformation Agency                                                 Page 135 of 742
                                                       Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Origination_18   The direct loan system must provide     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                             the following types of management
                             information: approval and rejection
                             monitoring, override exception,
                             potential application fraud, detailed
                             transaction history, exceptions, and
                             disbursement management
                             summaries.
Direct_Loan_Origination_19   The direct loan system must be able to JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
                             annotate on the borrower record that a
                             disbursement was offset by U.S.
                             Treasury on behalf of another
                             government agency.
Direct_Loan_Origination_2    The direct loan system must record      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                             the cohort and risk category, as
                             defined in OMB Circular A-34,
                             associated with the loan.

Direct_Loan_Origination_20   The direct loan system must provide a JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
                             user friendly query tool that facilitates
                             reporting rapidly on any required data
                             elements.
Direct_Loan_Origination_21   The direct loan system must maintain JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
                             financial accounting information at
                             appropriate levels of summary for
                             computational and reporting purposes.
                             The main levels are:
                             - transaction
                             - loan history
                             - risk category,
                             - cohort, and
                             - account.


Direct_Loan_Origination_3    The direct loan system must assign a JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
                             unique account number to the loan
                             that will remain unchanged throughout
                             the life of the loan.

Direct_Loan_Origination_4    The direct loan system must support     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                             the generation of loan documents for
                             the borrower and the agency.




    July 29, 2009                                                    Business Transformation Agency                                                 Page 136 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                      Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Origination_5          The direct loan system must record      JFMIPSR-99-8                FFMIA        Mandatory        FV        Record Loans and Grants
                                   information concerning the loan
                                   booking process, including date of
                                   booking.
Direct_Loan_Origination_6          The direct loan system must record         JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                   the applicable Treasury interest rate
                                   for the loan at the time of obligation, in
                                   accordance with OMB Circular A-34
                                   and agency specific guidelines. This
                                   rate is used in subsidy calculations.


Direct_Loan_Origination_7          The direct loan system must provide       JFMIPSR-99-8              FFMIA        Mandatory        FV        Record Loans and Grants
                                   an automated interface with the Core
                                   Financial System to record the direct
                                   loan obligation, including the obligation
                                   for the subsidy. The interface must
                                   also allow for the liquidation of
                                   commitments previously recorded.


Direct_Loan_Origination_8          The direct loan system must include in JFMIPSR-99-8                 FFMIA        Mandatory        FV        Record Loans and Grants
                                   credit bureau reporting all commercial
                                   accounts in excess of a pre-
                                   determined amount.
Direct_Loan_Origination_9          The direct loan system must calculate JFMIPSR-99-8                  FFMIA        Mandatory        FV        Record Loans and Grants
                                   and deduct the loan application and
                                   origination fee from disbursements if
                                   not previously remitted by the
                                   applicant.
Direct_Loan_Portfolio_Performance_1 The direct loan system must compare JFMIPSR-99-8                   FFMIA        Mandatory        FV        Record Loans and Grants
                                    loan data to the agency's program
                                    portfolio evaluation criteria in order to
                                    identify loans that require review or
                                    evaluation.
Direct_Loan_Portfolio_Performance_2 The direct loan system must compare JFMIPSR-99-8                   FFMIA        Mandatory        FV        Record Loans and Grants
                                    loan data to the agency's program
                                    portfolio evaluation criteria to identify
                                    loans with the potential for graduation
                                    to private sector financing.


Direct_Loan_Portfolio_Performance_3 The direct loan system must compute JFMIPSR-99-8                   FFMIA        Mandatory        FV        Record Loans and Grants
                                    and maintain program performance
                                    information.


    July 29, 2009                                                          Business Transformation Agency                                                  Page 137 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Performance_4 The direct loan system must compute JFMIPSR-99-8                  FFMIA        Mandatory        FV        Record Loans and Grants
                                    and maintain financial measures to
                                    help assess the credit soundness of a
                                    loan program.

Direct_Loan_Portfolio_Performance_5 The direct loan system must compute JFMIPSR-99-8                  FFMIA        Mandatory        FV        Record Loans and Grants
                                    and maintain efficiency measures to
                                    help determine the effectiveness of
                                    use of agency resources.

Direct_Loan_Portfolio_Performance_6 The direct loan system's program         JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                    performance measures may include:
                                    • Number and dollar value of loans
                                    made
                                    • Average loan size

                                    • Loans made by geographical region

                                    • Number and amount of delinquent
                                    loans by key indicators such as loan-to-
                                    value ratios
                                    • Number and amount of defaulted
                                    loans by key indicators such as loan-to-
                                    value ratios
                                    • Number and amount of rescheduled
                                    loans
                                    • Amount of loan write-offs.




    July 29, 2009                                                          Business Transformation Agency                                                 Page 138 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Performance_7 The direct loan system may use the    JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
                                    following performance measures to
                                    help assess the credit soundness of a
                                    loan program:
                                    • Average loan-to-value ratio (for
                                    collateralized programs)
                                    • Current loans as a percentage of
                                    total loans
                                    • Delinquent loans as a percentage of
                                    total current loans
                                    • Write-offs as a percentage of
                                    seriously delinquent loans
                                    • Overall portfolio risk rate

                                    • Loan loss rates

                                    • Recovery rates on defaulted loans.




Direct_Loan_Portfolio_Performance_8 The direct loan system may use the      JFMIPSR-99-8             FFMIA         Mandatory        FV        Record Loans and Grants
                                    following types of performance
                                    measures to compute the
                                    effectiveness of use of agency
                                    resources:
                                    • Administrative cost per loan
                                    approved
                                    • Time required to process a loan
                                    application
                                    • Administrative cost per loan serviced

                                    • Administrative cost per delinquent
                                    dollar collected
                                    • Net proceeds on real property sold
                                    compared to appraised value.


Direct_Loan_Portfolio_Program_Finan The Core Financial System and the      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_1                              direct loan system must execute SF-
                                    1151's and record amounts borrowed
                                    from the U.S. Treasury to finance
                                    loans. They must also make
                                    adjustments to borrowings during the
                                    year to reflect changes in original
                                    estimates.




    July 29, 2009                                                          Business Transformation Agency                                                 Page 139 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Program_Finan The direct loan system must transfer     JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_10                             loan subsidy from those risk
                                    categories with an excess of loan
                                    subsidies to those risk categories in
                                    the same cohort that are deficient in
                                    loan subsidies. This will help provide
                                    adequate funding for each risk
                                    category.
Direct_Loan_Portfolio_Program_Finan The direct loan system must group        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_11                             those cohorts that need indefinite
                                    appropriation loan subsidy funds
                                    separately from those cohorts that
                                    have excess funds. The system must
                                    be able to request an apportionment
                                    and obligate funds to cover the
                                    subsidy increase for those cohorts of
                                    loans that have insufficient subsidy.
                                    The direct loan system must also be
                                    able to transfer excess subsidy of
                                    cohorts of loans to the Special Fund
                                    Receipt Account.


Direct_Loan_Portfolio_Program_Finan The direct loan system must be able to JFMIPSR-99-8                FFMIA         Mandatory        FV        Record Loans and Grants
cing_12                             account for working capital cash
                                    balance in accordance with OMB
                                    guidance.
Direct_Loan_Portfolio_Program_Finan The direct loan system must record       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_13                             any costs incurred, which are funded
                                    by working capital.
Direct_Loan_Portfolio_Program_Finan The direct loan system must compute JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
cing_14                             the amount of Treasury interest
                                    earned by working capital funds and
                                    provide this amount to the Core
                                    Financial System.
Direct_Loan_Portfolio_Program_Finan The direct loan system must maintain JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
cing_15                             cash flow data that permits
                                    comparison of actual cash flows each
                                    year (and new estimates of future cash
                                    flows), as well as historical data from
                                    prior years to the cash flows used in
                                    computing the latest loan subsidy
                                    estimate.



    July 29, 2009                                                            Business Transformation Agency                                                 Page 140 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Program_Finan The system must maintain data that is JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
cing_16                             predictive of loan performance and
                                    subsidy costs--
Direct_Loan_Portfolio_Program_Finan The system must maintain the actual JFMIPSR-99-8                    FFMIA         Mandatory        FV        Record Loans and Grants
cing_17                             loan terms, including maturity, interest
                                    rate, and upfront and/or annual fees--

Direct_Loan_Portfolio_Program_Finan The system must record any changes JFMIPSR-99-8                     FFMIA         Mandatory        FV        Record Loans and Grants
cing_18                             in terms and conditions in addition to
                                    the original terms and conditions, not
                                    in place of them.
Direct_Loan_Portfolio_Program_Finan The system must include measures of JFMIPSR-99-8                    FFMIA         Mandatory        FV        Record Loans and Grants
cing_19                             the financial condition of the business
                                    or individual receiving the loan and
                                    past credit experience if applicable
                                    since creditworthiness may be a
                                    strong predictor of defaults.


Direct_Loan_Portfolio_Program_Finan The Core Financial System and the        JFMIPSR-99-8               FFMIA         Mandatory        FV        Record Loans and Grants
cing_2                              direct loan system must be able to
                                    execute and record U.S. Treasury
                                    borrowings to finance interest
                                    payments to U.S. Treasury if
                                    insufficient funds are available to make
                                    the payment.
Direct_Loan_Portfolio_Program_Finan The system must track the intended        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_20                             loan use for certain loan programs to
                                    reveal any significant variance in cost
                                    depending on the use of the loan
                                    proceeds.


Direct_Loan_Portfolio_Program_Finan The system must recognize that other JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
cing_21                             loan characteristics may also be
                                    important in predicting default. For
                                    example, the loan-to-value ratio is a
                                    critical data element for predicting
                                    housing loan defaults; for student
                                    loans, the type of educational
                                    institution may be important; the value
                                    of
                                    collateral is important in a number of
                                    programs.



    July 29, 2009                                                             Business Transformation Agency                                                 Page 141 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Program_Finan The system must maintain the primary JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
cing_22                             economic factors that influence loan
                                    performance.
Direct_Loan_Portfolio_Program_Finan The system must maintain all cash         JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_23                             transactions related to each loan for
                                    several years to allow for trend
                                    analysis.
Direct_Loan_Portfolio_Program_Finan The system must support the            JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
cing_24                             reestimate calculation and provide the
                                    necessary data to record the re-
                                    estimate in the core financial system.

Direct_Loan_Portfolio_Program_Finan The Core Financial System and the         JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_3                              direct loan system must track the
                                    amount of uninvested funds in the
                                    financing account. This function is
                                    needed to support the calculations of
                                    interest earnings.
Direct_Loan_Portfolio_Program_Finan The Core Financial System and the      JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
cing_4                              direct loan system must compute
                                    interest expense on borrowings and
                                    interest earnings on uninvested funds.

Direct_Loan_Portfolio_Program_Finan The Core Financial System and the         JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_5                              direct loan system must execute and
                                    record the repayment of principal
                                    using SF-1151's, and interest to U.S.
                                    Treasury using SF-1081's.


Direct_Loan_Portfolio_Program_Finan The Core Financial System and the         JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
cing_6                              direct loan system must execute and
                                    record the receipt of interest earnings
                                    from the U.S. Treasury on uninvested
                                    funds using SF-1081's.


Direct_Loan_Portfolio_Program_Finan The direct loan system must be able to JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
cing_7                              provide an automated interface with
                                    the Core Financial System to record all
                                    calculations.




    July 29, 2009                                                             Business Transformation Agency                                                 Page 142 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Program_Finan The direct loan system must support     JFMIPSR-99-8              FFMIA        Mandatory        FV        Record Loans and Grants
cing_8                              the re-estimate of the subsidy cost for OMBCIRA-11
                                    each cohort and risk category of loans SFFAS3
                                    at the beginning of each fiscal year in
                                    accordance with OMB Circular A-34
                                    and SFFAS No. 2.


Direct_Loan_Portfolio_Program_Finan The direct loan system must compare JFMIPSR-99-8                  FFMIA        Mandatory        FV        Record Loans and Grants
cing_9                              the current year reestimated subsidy
                                    cost to the prior year re-estimated loan
                                    subsidy cost to determine whether
                                    subsidy costs for a risk category
                                    increased or decreased.


Direct_Loan_Portfolio_Sales_1        The direct loan system must compare JFMIPSR-99-8                 FFMIA        Mandatory        FV        Record Loans and Grants
                                     loan information to agency program
                                     criteria to select loans for inclusion in a
                                     potential sales pool.

Direct_Loan_Portfolio_Sales_10       The direct loan system must provide     JFMIPSR-99-8             FFMIA        Mandatory        FV        Record Loans and Grants
                                     an automated interface with the Core SFFAS3
                                     Financial System to record the sale of
                                     receivables, the proceeds, changes in
                                     subsidy costs, and calculate the
                                     related gain or loss in accordance with
                                     SFFAS No. 2.


Direct_Loan_Portfolio_Sales_11       The direct loan system must provide at JFMIPSR-99-8              FFMIA        Mandatory        FV        Record Loans and Grants
                                     least the following types of
                                     management information: detailed
                                     transaction history, standard
                                     management control/activity, portfolio
                                     sale historical payments, portfolio sale
                                     performance, and program credit
                                     reform status.


Direct_Loan_Portfolio_Sales_12       The direct loan system must be able to JFMIPSR-99-8              FFMIA        Mandatory        FV        Record Loans and Grants
                                     update the loan information store with
                                     any provided information.




    July 29, 2009                                                         Business Transformation Agency                                                  Page 143 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                      Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Sales_13   The direct loan system must provide       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                 internal management information to
                                 agency credit program managers and
                                 designated internal review officials on
                                 a periodic basis.


Direct_Loan_Portfolio_Sales_14   The direct loan system must               JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                 determine the specific management
                                 information needs necessary to
                                 manage its credit programs based on
                                 the agency mission and applicable
                                 statutory requirements.


Direct_Loan_Portfolio_Sales_15   The direct loan system must provide       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                 hard copy reports or system queries.

Direct_Loan_Portfolio_Sales_2    The direct loan system must provide    JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
                                 the ad hoc query capability needed to
                                 provide information on selected loans.

Direct_Loan_Portfolio_Sales_3    The direct loan system must record   JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
                                 OMB/Treasury approval or disapproval
                                 of the sale/prepayment of a loan.

Direct_Loan_Portfolio_Sales_4    The direct loan system must generate JFMIPSR-99-8                   FFMIA         Mandatory        FV        Record Loans and Grants
                                 a prepayment offer to be sent to
                                 eligible borrowers for participation in
                                 the prepayment program.

Direct_Loan_Portfolio_Sales_5    The direct loan system must record        JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                 receipt of commitment letters from
                                 borrowers.
Direct_Loan_Portfolio_Sales_6    The direct loan system must provide    JFMIPSR-99-8                 FFMIA         Mandatory        FV        Record Loans and Grants
                                 an automated interface with the Core
                                 Financial System to record the receipt
                                 of a prepayment and the changes in
                                 subsidy costs.
Direct_Loan_Portfolio_Sales_7    The direct loan system must identify      JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                 loans with incomplete documentation
                                 in the loan information store and
                                 generate a request for information to
                                 ensure loan files are complete.


    July 29, 2009                                                          Business Transformation Agency                                                 Page 144 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                     Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Direct_Loan_Portfolio_Sales_8   The direct loan system must generate JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
                                documents and other information
                                necessary to finalize the sales
                                agreement with the purchaser.

Direct_Loan_Portfolio_Sales_9   The direct loan system must update       JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                the loan information store to identify
                                loans sold using information received
                                from the underwriter.

Direct_Loan_Reporting_1         The system must support disclosure, DoDFMRVol12,Ch4,Sub040202K     FFMIA         Mandatory        FV        Record Loans and Grants
                                in notes to financial statements, to      SFFAS2,56
                                explain of the nature of the
                                modifications of direct loans, the
                                discount rate used to calculate the
                                modification expense, and the basis
                                for recognizing a gain or loss related to
                                the modifications.


Direct_Loan_Reporting_2         The system must be capable of            JFMIPSR-99-8              FFMIA         Mandatory        FV        Record Loans and Grants
                                producing a complete transaction
                                history of each loan.
Direct_Loan_Reporting_3         The system must support the external JFMIPSR-99-8                  FFMIA         Mandatory        FV        Record Loans and Grants
                                reporting requirements of OMB and       JFMIPSR-99-8
                                Treasury, including those associated JFMIPSR-99-8
                                with FCRA of 1990 and the CFO Act of
                                1990-- These external reports rely on
                                supplemental financial data resident in
                                the direct loan system, although they
                                are generated from the general ledger.
                                The reports are
                                -SF-132, Apportionment and
                                Reapportionment Schedule
                                -SF-133, Report on Budget
                                Execution
                                -SF-220-9, Report on Accounts and
                                Loans Receivable Due from the Public




    July 29, 2009                                                        Business Transformation Agency                                                 Page 145 of 742
                                                   Defense Financial Management Improvement Guidance

             Rule Name             Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Disability_Benefits_1    The benefit system must support the     JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
                         benefit applications information data                                                                      Separate or Terminate Human
                         store for systems used in                                                                                  Resources
                         administering disability related                                                                           Sustain Human Resources
                         programs by capturing the type of
                         disability or disability code.
Disability_Benefits_2    The benefit system must support the     JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
                         benefit applications information data                                                                      Separate or Terminate Human
                         store for systems used in                                                                                  Resources
                         administering disability related                                                                           Sustain Human Resources
                         programs by capturing the date of
                         disability onset or injury.
Disability_Benefits_3    The benefit system must support the     JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
                         benefit applications information data                                                                      Separate or Terminate Human
                         store for systems used in                                                                                  Resources
                         administering disability related                                                                           Sustain Human Resources
                         programs by capturing the degree of
                         impairment or diagnosis.
Disability_Benefits_4    The benefit system must support the     JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
                         benefit applications information data                                                                      Separate or Terminate Human
                         store for systems used in                                                                                  Resources
                         administering disability related                                                                           Sustain Human Resources
                         programs by capturing the name of
                         examining physician.
                         • Claimant's physical location where
                         injury occurred (i.e., at work, home,
                         etc.).

Disability_Benefits_5    The benefit system must support the JFMIPSR-01-01,pg44            FFMIA         Mandatory        PV        Manage Benefits
                         benefit applications information data                                                                      Separate or Terminate Human
                         store for systems used in                                                                                  Resources
                         administering disability related                                                                           Sustain Human Resources
                         programs by capturing the claimant's
                         physical location where injury occurred
                         (i.e., at work, home, etc.).


Disability_Benefits_6    The benefit system should support the JFMIPSR-01-01,pg45          FFMIA         Value Added      PV        Manage Benefits
                         benefit applications information data                                                                      Sustain Human Resources
                         store for systems used in
                         administering disability related
                         programs by capturing whether
                         disability was caused by employment
                         or related to military service.



    July 29, 2009                                                Business Transformation Agency                                                 Page 146 of 742
                                                           Defense Financial Management Improvement Guidance

             Rule Name                       Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Disability_Benefits_7               The benefit system should support the JFMIPSR-01-01,pg45       FFMIA         Value Added      PV        Manage Benefits
                                    benefit applications information data                                                                   Sustain Human Resources
                                    store for systems used in
                                    administering disability related
                                    programs by capturing the claimant or
                                    dependent(s)' student status (e.g.,
                                    fulltime, yes or no).
Establish_AR_Maintain_Update_Acco To support the Receivables and Billing JFMIPSR-03-01,pg35        FFMIA         Mandatory        FV        Establish Receivable
unt_Information_1                 process, the Core financial system     OFFM-NO-0106,RMB                                                   Post to General Ledger
                                  must provide automated functionality
                                  to record accounts receivable and
                                  corresponding revenues, expense
                                  reductions, advance/prepayment
                                  reclassifications, or other offsets.


Establish_AR_Maintain_Update_Acco To support the Debt Management         OFFM-NO-0106,RMC          FFMIA         Mandatory        FV        Calculate Aging
unt_Information_10                process, the Core financial system                                                                        Perform Financial Reporting
                                  must provide automated functionality
                                  to generate an Accounts Receivable
                                  Aging Report. Parameters include:
                                  • Accounting Period 

                                  • Treasury Account Symbol (TAS) or
                                  Internal Fund Code
                                  • General Ledger Account 

                                  • Customer type

                                  • Federal/Non Federal Indicator

                                  • Customer ID number. 

                                  Result is a report that displays the
                                  outstanding receivable balances in
                                  each of the Delinquent Debt Age
                                  categories listed on the Treasury
                                  Report on Receivables (TROR).




    July 29, 2009                                                        Business Transformation Agency                                                  Page 147 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Collections and Offsets OFFM-NO-0106,RMD       FFMIA        Mandatory        FV        Apply Collection
unt_Information_11                process, the Core financial system                                                                    Post to General Ledger
                                  must provide automated functionality
                                  to record collections of refunds of
                                  advance payments or prepayments. If
                                  a receivable was not previously
                                  established, reference the advance
                                  obligation. Reduce cumulative
                                  advances under the obligation.



Establish_AR_Maintain_Update_Acco To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Maintain Accounts Receivable
unt_Information_12                process, the Core financial system                                                                    Balances
                                  must provide automated functionality                                                                  Post to General Ledger
                                  to record adjustments to receivables
                                  and capture a reason and description
                                  on each adjustment.




    July 29, 2009                                                    Business Transformation Agency                                                  Page 148 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management           OFFM-NO-0106,RMC       FFMIA        Mandatory        FV        Validate Customer Information
unt_Information_13                process, the Core financial system
                                  must provide automated functionality
                                  to query customer receivables.
                                  Parameters include Customer ID
                                  Number, Customer Name, TIN,
                                  Trading partner codes. Result is a
                                  display of the customer's information
                                  (e.g., customer ID number, customer
                                  name, TIN, trading partner codes) and
                                  all receivable-related activity
                                  associated with the customer,
                                  including the following:
                                  • Principal

                                  • Interest 

                                  • Penalties 

                                  • Administrative charges 

                                  • Adjustments 

                                  • Collections 

                                  • Waivers 

                                  • Write-offs 

                                  • Receivable balance.

                                  • Group interest, penalties, and
                                  administrative charges with their
                                  associated principal. Drill down to the
                                  detailed transactions, documents, and
                                  document details (e.g., document
                                  numbers, transaction dates, document
                                  reference numbers, receivable
                                  statuses (billed or unbilled), bill
                                  numbers (if billed), bill dates, dunning
                                  notice dates, referral dates, due dates,
                                  and delinquent debt statuses).




    July 29, 2009                                                      Business Transformation Agency                                                  Page 149 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                 Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Receivables and Billing OFFM-NO-0106,RMB           FFMIA         Mandatory        FV        Maintain Accounts Receivable
unt_Information_14                process, the Core financial system                                                                         Balances
                                  must provide automated functionality
                                  to capture the following additional
                                  information on receivable documents:

                                    • Baseline receivable date (used to
                                    properly age the receivable and
                                    determine the delinquency date)
                                    • Customer ID number

                                    • Reimbursable agreement number.

Establish_AR_Maintain_Update_Acco To support the Debt Management          OFFM-NO-0106,RMC          FFMIA         Mandatory        FV        Notify Manage Delinquent Debt
unt_Information_15                process, the Core financial system
                                  must provide automated functionality
                                  to classify delinquent debt by the
                                  following categories needed for the
                                  Treasury Report on Receivables
                                  TROR:
                                  • In Bankruptcy

                                  • In Forbearance or formal appeals
                                  process
                                  • In Foreclosure

                                  • At private collection agencies

                                  • At DOJ

                                  • Eligible for internal offset

                                  • In wage garnishment

                                  • At Treasury for cross-servicing

                                  • At Treasury for Offset

                                  • At Agency

                                  • Other.




    July 29, 2009                                                         Business Transformation Agency                                                  Page 150 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                    Primary Reference          Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Establish_AR_Maintain_Update_Acco For all non-federal agency receivables    DoDFMRVol4,Ch3,Sub030306        FFMIA        Mandatory        FV        Calculate Allowance for Loss on Public
unt_Information_16                (due from the public), the system must    DoDFMRVol4,Ch3,Sub030405                                                Receivable
                                  record an allowance for uncollectible     SFFAS1,45                                                               Post to General Ledger
                                  amounts to reduce the gross amount        SFFAS1,46
                                  of receivables to net realizable value,   SFFAS1,47
                                  and estimate the allowance for            SFFAS1,49
                                  uncollectible amounts in accordance
                                  with SFFAS-1 paragraphs 45 - 51. The
                                  allowance for uncollectible amounts
                                  must be re-estimated on each annual
                                  financial reporting date and when
                                  information indicates that the latest
                                  estimate is no longer correct.




Establish_AR_Maintain_Update_Acco The system must record an interest    DoDFMRVol4,Ch3,Sub030307            FFMIA        Mandatory        FV        Calculate Interest
unt_Information_17                receivable for the amount of interest SFFAS1,53                                                                   Post to General Ledger
                                  income earned but not received for an
                                  accounting period.
Establish_AR_Maintain_Update_Acco The system shall not recognize          31CFR,Vol1,SubtitleB,ChIX,Pt901   FFMIA        Mandatory        FV        Calculate Interest
unt_Information_18                interest on accounts receivable or      31CFR,Vol1,SubtitleB,ChIX,Pt901                                           Perform Financial Reporting
                                  investments that are determined to be SFFAS1,54                                                                   Post to General Ledger
                                  uncollectible unless the interest is
                                  actually collected. Payments received
                                  from the debtor are required to be
                                  applied first to penalty and
                                  administrative cost charged, second to
                                  interest receivable, and third to
                                  outstanding debt principal, per Federal
                                  Claims Collection Standards, 31 CFR,
                                  Chapter IX Part 901.9 (a) and (f).
                                  However, until the interest payment
                                  requirement is officially waived by the
                                  government entity or the related debt
                                  is written off, interest accrued on
                                  uncollectible accounts receivable shall
                                  be disclosed.




    July 29, 2009                                                           Business Transformation Agency                                                       Page 151 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Receivables and Billing OFFM-NO-0106,RMB           FFMIA        Mandatory        FV        Maintain Accounts Receivable
unt_Information_19                process, the Core financial system                                                                        Balances
                                  must provide automated functionality
                                  to query reimbursable agreements.
                                  Parameters include Reimbursable
                                  Agreement Number, Customer ID
                                  Number, Customer Name, Project, or
                                  Fund. Result is a display of the
                                  following information for each
                                  reimbursable agreement selected:
                                  • Period of performance 

                                  • Billing terms

                                  • Reimbursable agreement amount 

                                  • Billing limit 

                                  • Amount obligated 

                                  • Amount expended 

                                  • Unfilled customer order amount 

                                  • Advances collected 

                                  • Advances applied to earned revenue 

                                  • Remaining balance on advances 

                                  • Amount earned 

                                  • Amount billed 

                                  • Amount collected on receivables

                                  • Outstanding accounts receivable
                                  (billed and unbilled)




Establish_AR_Maintain_Update_Acco To support the Receivables and Billing JFMIPSR-03-01,pg35         FFMIA        Mandatory        FV        Maintain Accounts Receivable
unt_Information_2                 process, the Core financial system     OFFM-NO-0106,RMB                                                   Balances
                                  must provide automated functionality
                                  to reschedule existing receivables to
                                  be paid under installment plans.


Establish_AR_Maintain_Update_Acco The system must be able to             DoDFMRVol4,Ch3,Sub030212   FFMIA        Mandatory        FV        Update Chart of Accounts and SFIS
unt_Information_20                distinguish between entity receivables DoDFMRVol4,Ch3,Sub030217                                           Attribute and Pro Forma Entries and
                                  and non-entity receivables.            SFFAS1,43                                                          Calendar

Establish_AR_Maintain_Update_Acco The system must account for interest   DoDFMRVol4,Ch3,Sub030307   FFMIA        Mandatory        FV        Calculate Interest
unt_Information_21                receivable from federal entities       SFFAS1,56                                                          Post to General Ledger
                                  separately from interest receivable
                                  from the public.




    July 29, 2009                                                        Business Transformation Agency                                                  Page 152 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                 Primary Reference      Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Establish_AR_Maintain_Update_Acco The system must recognize interest      DoDFMRVol4,Ch3,Sub030307   FFMIA        Mandatory        FV        Calculate Interest
unt_Information_22                receivable as it is earned on           SFFAS1,53                                                          Post to General Ledger
                                  investments in interest-bearing
                                  securities and also on outstanding
                                  accounts receivable and other U.S.
                                  government claims against persons
                                  and entities in accordance with
                                  provisions in 31. U.S.C. 3717, Interest
                                  and Penalty claims.


Establish_AR_Maintain_Update_Acco To support the Debt Management         OFFM-NO-0106,RMC            FFMIA        Mandatory        FV        Calculate Allowance for Loss on Public
unt_Information_23                process, the Core financial system                                                                         Receivable
                                  must provide automated functionality                                                                       Post to General Ledger
                                  to provide the capability to calculate
                                  and record the allowance for loss on
                                  accounts receivable based on agency-
                                  defined criteria, including percentage
                                  of gross book value of receivables
                                  within an age category, customer type,
                                  and receivable type.



Establish_AR_Maintain_Update_Acco To support the Debt Management          OFFM-NO-0106,RMC           FFMIA        Mandatory        FV        Calculate Administrative Fees
unt_Information_24                process, the Core financial system                                                                         Calculate Penalty
                                  must provide automated functionality                                                                       Post to General Ledger
                                  to calculate and record penalties and
                                  administrative charges on overdue
                                  receivables based on an agency-
                                  assigned rate or amount for a
                                  particular receivable, customer,
                                  customer type, or receivable type.




    July 29, 2009                                                         Business Transformation Agency                                                  Page 153 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Collections and Offsets OFFM-NO-0106,RMD             FFMIA        Mandatory        FV        Record and Manage Receivable
unt_Information_25                process, the Core financial system
                                  must provide automated functionality
                                  to query collections. Parameters
                                  include:
                                  • Source

                                  • Customer ID number

                                  • Customer name

                                  • TIN

                                  • Reimbursable agreement number

                                  • Receivable document number

                                  • Deposit date range

                                  • Accounting period

                                  • Accounting classification. 

                                  Result is a list of collections within the
                                  specified parameters, with the values
                                  for all the possible parameters.



Establish_AR_Maintain_Update_Acco To support the Bill Generation             JFMIPSR-03-01,pg36       FFMIA        Mandatory        FV        Establish Receivable
unt_Information_26                function, the Revenue System must                                                                           Post to General Ledger
                                  provide the capability to record billings
                                  by line item in order to identify specific
                                  accounting classification codes.


Establish_AR_Maintain_Update_Acco To support the Debt Management          OFFM-NO-0106,RMC            FFMIA        Mandatory        FV        Calculate Interest
unt_Information_27                process, the Core financial system                                                                          Calculate Penalty
                                  must provide automated functionality                                                                        Post to General Ledger
                                  to calculate and record late payment
                                  interest charges on overdue non-
                                  Federal receivables based on an
                                  agency-assigned interest rate different
                                  from the Current Value of Funds Rate
                                  (CVFR) for a particular receivable,
                                  customer, or customer type.




    July 29, 2009                                                         Business Transformation Agency                                                   Page 154 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management         OFFM-NO-0106,RMC            FFMIA        Mandatory        FV        Calculate Interest
unt_Information_28                process, the Core financial system
                                  must provide automated functionality
                                  to optionally cease or continue
                                  accruing interest on delinquent debts
                                  that have been referred to Treasury or
                                  another agency.


Establish_AR_Maintain_Update_Acco To support the Debt Management         OFFM-NO-0106,RMC            FFMIA        Mandatory        FV        Calculate Aging
unt_Information_29                process, the Core financial system
                                  must provide automated functionality
                                  to query accounts receivable by age
                                  categories. Parameters include:
                                  • Accounting Period 

                                  • TAS or Internal Fund Code 

                                  • General Ledger Account 

                                  • Customer type

                                  • Federal/Non Federal Indicator

                                  • Customer ID number. 

                                  Result is a display of the outstanding
                                  receivable balances in each of the
                                  Delinquent Debt Age categories listed
                                  on the TROR. Drill-down to a detailed
                                  list of outstanding receivables within
                                  any one age category.




Establish_AR_Maintain_Update_Acco To support the Receivable               DoDFMRVol4,Ch3,Sub030301   FFMIA        Mandatory        FV        Establish Receivable
unt_Information_3                 Management Process, the Revenue         DoDFMRVol4,Ch3,Sub030307                                           Post to General Ledger
                                  System must provide the capability to   JFMIPSR-03-01,pg35
                                  accept transactions that generate       SFFAS1,53
                                  revenue receivables.
Establish_AR_Maintain_Update_Acco To support the Collections and Offsets OFFM-NO-0106,RMD            FFMIA        Mandatory        FV        Prepare Reimbursable Bill
unt_Information_30                process, the Core financial system
                                  must provide automated functionality
                                  to revenue received under
                                  reimbursable agreements. Update the
                                  earned revenue balances on the
                                  reimbursable agreements.




    July 29, 2009                                                         Business Transformation Agency                                                   Page 155 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management         OFFM-NO-0106,RMC          FFMIA        Mandatory        FV        Record and Manage Receivable
unt_Information_31                process, the Core financial system
                                  must provide automated functionality
                                  to generate the Treasury Report on
                                  Receivables (TROR). Parameter is the
                                  fiscal year and quarter. Result is the
                                  TROR in accordance with Treasury
                                  form and instructions. Ensure reported
                                  totals agree with the general ledger.



Establish_AR_Maintain_Update_Acco To support the Debt Management            OFFM-NO-0106,RMC       FFMIA        Mandatory        FV        Calculate Administrative Fees
unt_Information_32                process, the Core financial system                                                                       Calculate Interest
                                  must provide automated functionality                                                                     Calculate Penalty
                                  to optionally record interest, penalties,                                                                Post to General Ledger
                                  or administrative costs to accounting
                                  classification elements that are
                                  different from those to which the
                                  principal amount is recorded.


Establish_AR_Maintain_Update_Acco To support the Receivables and Billing OFFM-NO-0106,RMB          FFMIA        Mandatory        FV        Establish Receivable
unt_Information_33                process, the Core financial system
                                  must provide automated functionality
                                  to Capture an agency-defined
                                  receivable type on receivable
                                  documents to identify the activity
                                  which generated the receivable, such
                                  as: the sale of goods or services,
                                  overpayments, unused advances
                                  subject to refund, fees and fines.


Establish_AR_Maintain_Update_Acco To support the Receivables and Billing OFFM-NO-0106,RMB          FFMIA        Mandatory        FV        Re-Calculate Receivable
unt_Information_34                process, the Core financial system
                                  must provide automated functionality
                                  to reschedule a receivable multiple
                                  times.




    July 29, 2009                                                       Business Transformation Agency                                                  Page 156 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                 Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Receivables and Billing OFFM-NO-0106,RMB            FFMIA         Mandatory        FV        Review Outstanding Principal Balance
unt_Information_35                process, the Core financial system
                                  must provide automated functionality
                                  to generate a Debt Repayment
                                  Amortization Schedule. Parameters
                                  include the receivable number, final
                                  due date, begin date, frequency of
                                  payments, and interest rate. Result is
                                  an amortization schedule that displays
                                  the original amount of debt, payment
                                  dates, amount of incremental
                                  payments, and balance remaining
                                  after each payment for debt being paid
                                  under an installment plan or
                                  rescheduled debt.




Establish_AR_Maintain_Update_Acco To support the Debt Management           OFFM-NO-0106,RMC          FFMIA         Mandatory        FV        Review Outstanding Principal Balance
unt_Information_36                process, the Core financial system                                                                          Update Chart of Accounts and SFIS
                                  must provide automated functionality                                                                        Attribute and Pro Forma Entries and
                                  to classify receivables written off as                                                                      Calendar
                                  "Currently not Collectible" or "Closed
                                  Out.


Establish_AR_Maintain_Update_Acco To support the Debt Management           OFFM-NO-0106,RMC          FFMIA         Mandatory        FV        Re-Calculate Receivable
unt_Information_37                process, the Core financial system
                                  must provide automated functionality
                                  to update receivables with dunning
                                  notice dates, referral dates, and
                                  comments to support debt collection
                                  activities.
Establish_AR_Maintain_Update_Acco To support the Collections and Offsets OFFM-NO-0106,RMD            FFMIA         Mandatory        FV        Generate Offsetting Receivable
unt_Information_38                process, the Core financial system                                                                          Liability Pro Forma Entries
                                  must provide automated functionality                                                                        Post to General Ledger
                                  to record advances (unearned
                                  revenue) received under reimbursable
                                  agreements. Update the advance
                                  balances on the reimbursable
                                  agreements.




    July 29, 2009                                                          Business Transformation Agency                                                  Page 157 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Collections and Offsets OFFM-NO-0106,RMD              FFMIA        Mandatory        FV        Generate Offsetting Receivable
unt_Information_39                process, the Core financial system                                                                           Liability Pro Forma Entries
                                  must provide automated functionality
                                  to generate a refund payable when
                                  collections of advances from others
                                  exceed the amount expended or billed
                                  on a reimbursable agreement after all
                                  work is performed. Update the
                                  advance balances on the reimbursable
                                  agreements.


Establish_AR_Maintain_Update_Acco To support the Debt Management            DoDFMRVol4,Ch3,Sub030302   FFMIA        Mandatory        FV        Establish Receivable
unt_Information_4                 function, the Revenue System must         JFMIPSR-03-01,pg38                                                 Post to General Ledger
                                  provide the capability to maintain
                                  accounts for reimbursable orders and
                                  identify government and non-
                                  government accounts that are
                                  designated as advance funding.


Establish_AR_Maintain_Update_Acco To support the Customer Information       OFFM-NO-0106,RMA           FFMIA        Mandatory        FV        Post to General Ledger
unt_Information_40                Maintenance process, the Core                                                                                Validate Customer Information
                                  financial system must provide
                                  automated functionality to validate
                                  TINs when adding or updating
                                  customer records. Notify the agency
                                  when duplicate TINs are identified.
                                  Allow the error message to be
                                  overridden.

Establish_AR_Maintain_Update_Acco To support the Customer Information       OFFM-NO-0106,RMA           FFMIA        Mandatory        FV        Validate Customer Information
unt_Information_41                Maintenance process, the Core
                                  financial system must provide
                                  automated functionality to query
                                  customer file. Parameters include:
                                  • Customer number

                                  • Customer name

                                  • Customer Taxpayer Identification
                                  Number (TIN)
                                  • Data Universal Numbering System
                                  (DUNS)+4 numbers
                                  • IRS 1099-C indicator

                                  Result is a display of all data for the
                                  specified customer.



    July 29, 2009                                                           Business Transformation Agency                                                  Page 158 of 742
                                                       Defense Financial Management Improvement Guidance

           Rule Name                      Rule Description                Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Customer Information OFFM-NO-0106,RMA        FFMIA        Mandatory        FV        Validate Customer Information
unt_Information_42                Maintenance process, the Core
                                  financial system must provide
                                  automated functionality to maintain a
                                  history of changes made to customer
                                  information. Capture name of data
                                  item changed, before and after values,
                                  entry date and time and ID of user who
                                  made the change.


Establish_AR_Maintain_Update_Acco To support the Customer Information OFFM-NO-0106,RMA        FFMIA        Mandatory        FV        Validate Customer Information
unt_Information_43                Maintenance process, the Core
                                  financial system must provide
                                  automated functionality to query
                                  customer history. Parameters include
                                  customer number, change date range.
                                  Results include date and time of
                                  change, ID of user who made the
                                  change, item name, before and after
                                  data values.


Establish_AR_Maintain_Update_Acco To support the Customer Information OFFM-NO-0106,RMA        FFMIA        Mandatory        FV        Validate Customer Information
unt_Information_44                Maintenance process, the Core
                                  financial system must provide
                                  automated functionality to deactivate
                                  customers on demand or based on
                                  agency-specified length of time with no
                                  activity.
Establish_AR_Maintain_Update_Acco To support the Customer Information OFFM-NO-0106,RMA        FFMIA        Mandatory        FV        Validate Customer Information
unt_Information_45                Maintenance process, the Core
                                  financial system must provide
                                  automated functionality to prevent the
                                  deactivation of customers that have
                                  unliquidated receivables in the system.




   July 29, 2009                                                   Business Transformation Agency                                                  Page 159 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Receivable              JFMIPSR-03-01,pg35         FFMIA        Mandatory        FV        Establish Receivable
unt_Information_46                Management Process, the Revenue
                                  System must provide the capability to
                                  establish receivables to be paid under
                                  installment plans, including plans for
                                  which payments have been
                                  rescheduled. Generate flexible
                                  repayment schedules for delinquent
                                  indebtedness.


Establish_AR_Maintain_Update_Acco To support the Debt Management          JFMIPSR-03-01,pg38        FFMIA        Mandatory        FV        Maintain Accounts Receivable
unt_Information_47                function, the Revenue System must                                                                         Balances
                                  provide the capability to maintain data
                                  on individual receivables and
                                  referenced transactions supporting the
                                  receivable.


Establish_AR_Maintain_Update_Acco To support the Debt Management         JFMIPSR-03-01,pg38         FFMIA        Mandatory        FV        Calculate Interest
unt_Information_48                function, the Revenue System must                                                                         Calculate Penalty
                                  provide the capability to calculate
                                  interest and penalty charges using the
                                  appropriate Treasury Late Payment
                                  Charge rate and user-defined criteria
                                  (e.g., customer, customer type).
                                  Automatically generate a separate line
                                  item for interest charges on the
                                  customer bill.


Establish_AR_Maintain_Update_Acco To support the Debt Management           JFMIPSR-03-01,pg38       FFMIA        Mandatory        FV        Calculate Administrative Fees
unt_Information_49                function, the Revenue System must                                                                         Calculate Penalty
                                  provide the capability to allow the user                                                                  Post to General Ledger
                                  to specify administrative and penalty
                                  amounts and record these amounts to
                                  different accounting classification
                                  elements for which the principal
                                  amount is recorded. Automatically
                                  apply these charges to customer
                                  accounts and generate separate line
                                  items for the charges on the customer
                                  bills.




    July 29, 2009                                                        Business Transformation Agency                                                   Page 160 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management            JFMIPSR-03-01,pg39       FFMIA        Mandatory        FV        Establish Receivable
unt_Information_5                 function, the Revenue System must                                                                          Post to General Ledger
                                  provide the capability to maintain data
                                  for receivables referred to other federal
                                  agencies and outside organizations for
                                  collections and allow for electronic
                                  updates.


Establish_AR_Maintain_Update_Acco To support the Debt Management         JFMIPSR-03-01,pg38          FFMIA        Mandatory        FV        Generate Demand for Payment
unt_Information_50                function, the Revenue System must                                                                          Post to General Ledger
                                  provide the capability to provide an
                                  automated process for issuing invoices
                                  and follow-ups every 30 days, and
                                  generate posting/updating to the
                                  General Ledger with automated audit
                                  trail to source documents (OMB
                                  Circular A-129).


Establish_AR_Maintain_Update_Acco To support the Debt Management           JFMIPSR-03-01,pg38        FFMIA        Mandatory        FV        Calculate Aging
unt_Information_51                function, the Revenue System must
                                  provide the capability to follow
                                  instructions provided in authoritative
                                  guidance:
                                  • Automatically age receivables as
                                  described in OMB Circular A-129;
                                  • Provide referral of payment history to
                                  Credit Reporting Bureaus (31 U.S.C.
                                  3711);
                                  • Refer all applicable non-federal
                                  accounts receivable over 180 days to
                                  Treasury for Offset (DCIA of 1996);
                                  and
                                  • Generate report of accounts
                                  receivable for debts in excess of
                                  $100,000 for approval or write-off (31
                                  CFR Part 902).




    July 29, 2009                                                        Business Transformation Agency                                                   Page 161 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management           JFMIPSR-03-01,pg38        FFMIA        Mandatory        FV        Calculate Aging
unt_Information_52                function, the Revenue System must
                                  provide the capability to provide
                                  information on the age of receivables
                                  to allow for management and
                                  prioritization of collection activities.
                                  This is to include aging information on
                                  individual receivables and on a
                                  summary basis, such as by customer,
                                  type of customer, fund, and general
                                  ledger account.


Establish_AR_Maintain_Update_Acco To support the Debt Management         JFMIPSR-03-01,pg39          FFMIA        Mandatory        FV        Calculate Interest
unt_Information_53                function, the Revenue System must
                                  provide the capability to compute
                                  simple and compound interests for
                                  user-defined (or according to a
                                  contractual or modification agreement)
                                  time frames using fixed and variable
                                  rates.


Establish_AR_Maintain_Update_Acco To support the Debt Management            JFMIPSR-03-01,pg39       FFMIA        Mandatory        FV        Calculate Allowance for Loss on Public
unt_Information_54                function, the Revenue System must                                                                          Receivable
                                  provide the capability to calculate (as a                                                                  Post to General Ledger
                                  percentage of gross receivables or
                                  related revenues) and record the
                                  allowance for doubtful accounts based
                                  on historical experience, review of
                                  files, or other data indicating trend.




    July 29, 2009                                                        Business Transformation Agency                                                    Page 162 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management            JFMIPSR-03-01,pg39,40    FFMIA        Mandatory        FV        Post to General Ledger
unt_Information_55                function, the Revenue System must                                                                          Re-Calculate Receivable
                                  provide the capability to track and
                                  report on the date and nature of
                                  changes in the status of an accounts
                                  receivable, including the following:
                                  • In Forbearance or in Formal Appeals
                                  Process;
                                  • In Foreclosure;

                                  • In Wage Garnishment;

                                  • Rescheduled;

                                  • Current;

                                  • Waived/un-waived;

                                  • Eligible for Referral to Treasury for
                                  Offset;
                                  • Referred to Treasury for Offset;

                                  • Eligible for Internal Offset;

                                  • Eligible for Referral to Treasury or a
                                  Designated Debt Collection Center for
                                  Cross-servicing;
                                  • Referred to Treasury for cross-
                                  servicing;
                                  • Referred to private collection agency;

                                  • Referred to Department of Justice
                                  [with tracked cases by code and
                                  date];
                                  • Offset;

                                  • Suspended;

                                  • Compromised;

                                  • Currently not collectible (written off,
                                  but not yet closed out);
                                  • Written-off; and

                                  • Closed Out.




    July 29, 2009                                                         Business Transformation Agency                                                  Page 163 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management        JFMIPSR-03-01,pg40            FFMIA        Mandatory        FV        Determine If Receivable Can Be Offset
unt_Information_56                function, the Revenue System must
                                  provide the capability to offset
                                  payments to debtors for amounts due
                                  to the agency (e.g., outstanding
                                  accounts receivable, credit memo, and
                                  open advances). When an entire
                                  payment is offset, create the
                                  appropriate notice to the vendor that
                                  the offset has been made.


Establish_AR_Maintain_Update_Acco To support the Debt Management            JFMIPSR-03-01,pg40        FFMIA        Value Added      FV        Establish Customer Information
unt_Information_57                function, the Revenue System should
                                  provide the capability to support ability
                                  to capture free form notes (i.e.,
                                  comments from phone messages) by
                                  date and to retrieve comments by
                                  date.
Establish_AR_Maintain_Update_Acco To support the Debt Management         JFMIPSR-03-01,pg40           FFMIA        Value Added      FV        Maintain Accounts Receivable
unt_Information_58                function, the Revenue System should                                                                         Balances
                                  provide the capability to provide a
                                  status code with user definable text
                                  values that can be used for monitoring
                                  and tracking accounts.


Establish_AR_Maintain_Update_Acco Obligations shall be recorded in the    DoDFMRVol3,Ch8,Sub080301A   DFMIR        Mandatory        FV        Maintain Accounts Receivable
unt_Information_59                official accounting records at the time DoDFMRVol4,Ch3,Sub030319                                            Balances
                                  a legal obligation is incurred, or as                                                                       Post to General Ledger
                                  close to the time of incurrence as is
                                  feasible. In no instance shall
                                  obligations be recorded any later than
                                  10 calendar days following the day that
                                  an obligation is incurred (to include
                                  obligations incurred when invoices are
                                  overpaid or duplicate payments are
                                  made). Every effort shall be made to
                                  record an obligation in the month
                                  incurred.




    July 29, 2009                                                        Business Transformation Agency                                                    Page 164 of 742
                                                       Defense Financial Management Improvement Guidance

           Rule Name                      Rule Description                Primary Reference       Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Customer Information OFFM-NO-0106,RMA           FFMIA        Mandatory        FV        Establish Customer Information
unt_Information_6                 Maintenance process, the Core
                                  financial system must provide
                                  automated functionality to maintain
                                  customer information to support
                                  receivable management processes
                                  including the following:
                                  • Customer name 

                                  • Customer ID number 

                                  • Customer type (Federal agency,
                                  foreign/sovereign, state/local
                                  government, commercial, or
                                  consumer)
                                  • Billing method (Intra-governmental
                                  Payment and Collection (IPAC), 1081,
                                  paper bill, or other)
                                  • Taxpayer Identification Number (TIN)

                                  • Customer address 

                                  • Customer contact name 

                                  • Customer contact telephone number

                                  • Customer contact e-mail address

                                  • Federal vs. Non-Federal indicator 

                                  • Governmentwide Financial Report
                                  System (GFRS) and Federal Agencies'
                                  Centralized Trial-Balance System
                                  (FACTS) I Trading Partner codes (for
                                  Federal customers)
                                  • Agency Locator Code (ALC) (for
                                  Federal customers)
                                  • IRS 1099-C indicator

                                  • Third-party payer name 

                                  • Third-party payer address 

                                  • Third-party payer contact name 

                                  • Third-party payer contact telephone
                                  number
                                  • Comment field

                                  • Data Universal Numbering System
                                  (DUNS)+4 number
Establish_AR_Maintain_Update_Acco The system must record, as accounts DoDFMRVol4,Ch3,Sub030303   DFMIR        Mandatory        FV        Calculate Associated Revenue
unt_Information_60                receivable, uncollected amounts                                                                        Post to General Ledger
                                  earned from reimbursable sales.




    July 29, 2009                                                  Business Transformation Agency                                                     Page 165 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Establish_AR_Maintain_Update_Acco To support the Debt Management          JFMIPSR-03-01,pg38       FFMIA        Mandatory        FV        Post to General Ledger
unt_Information_7                 function, the Revenue System must                                                                        Validate Customer Information
                                  provide the capability to update each
                                  customer account when: billing
                                  documents are generated, collections
                                  are received, interest, penalty or
                                  administrative fees are applied, and
                                  when amounts are written-off or offset.



Establish_AR_Maintain_Update_Acco To support the Debt Management       OFFM-NO-0106,RMC            FFMIA        Mandatory        FV        Calculate Interest
unt_Information_8                 process, the Core financial system                                                                       Post to General Ledger
                                  must provide automated functionality
                                  to calculate and record late payment
                                  interest charges on overdue non-
                                  Federal receivables based on the
                                  Treasury Current Value of Funds Rate
                                  (CVFR) unless otherwise specified by
                                  the agency.


Establish_AR_Maintain_Update_Acco To support the Receivables and Billing JFMIPSR-03-01,pg49        FFMIA        Mandatory        FV        Review Outstanding Principal Balance
unt_Information_9                 process, the Core financial system     OFFM-NO-0106,RMB
                                  must provide automated functionality
                                  to query outstanding receivable
                                  balance. Parameter is the receivable
                                  document number. Result is the
                                  original amount of the receivable, the
                                  current outstanding amount of the
                                  receivable and a detailed list of all
                                  activity related to the receivable,
                                  including:
                                  • Adjustments 

                                  • Interest 

                                  • Penalties 

                                  • Administrative charges 

                                  • Collections 

                                  • Waivers 

                                  • Write-offs.




    July 29, 2009                                                       Business Transformation Agency                                                  Page 166 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Execute_Payments_1     To support the Disbursing process, the OFFM-NO-0106,PMD          FFMIA         Mandatory        FV        Distribute Payment
                       Core financial system must provide                                                                        Schedule Payment
                       automated functionality to identify
                       payments to be disbursed in a
                       particular payment cycle based on
                       their due date. Provide for on-line
                       review and certification by an
                       authorized certifying officer, including
                       the holding of individual payments
                       from inclusion in the payment
                       schedule.

Execute_Payments_10    To support the payment process, the JFMIPSR-02-02,Pg44           FFMIA         Mandatory        FV        Verify Funds Availability
                       agency's single integrated financial
                       management system must verify funds
                       availability before making payment.

Execute_Payments_100   To support the payment process, the JFMIPSR-02-02,Pg41           FFMIA         Mandatory        FV        Schedule Payment
                       agency's single integrated financial
                       management system must verify the
                       contracting officer's approval, including
                       amount and accounting information,
                       for a performance-based payment


Execute_Payments_101   To support the payment process, the    JFMIPSR-02-02,Pg41        FFMIA         Mandatory        FV        Schedule Payment
                       agency's single integrated financial
                       management system must permit
                       progress payments in the amount
                       approved by the contracting officer.


Execute_Payments_102   To support the payment process, the    JFMIPSR-02-02,Pg41        FFMIA         Mandatory        FV        Schedule Payment
                       agency's single integrated financial
                       management system must permit
                       payment without evidence of
                       performance (for contract financing,
                       including advance payments and
                       commercial contract financing).


Execute_Payments_103   To support the payment process, the JFMIPSR-02-02,Pg41           FFMIA         Mandatory        FV        Disburse
                       agency's single integrated financial
                       management system must provide an
                       indicator (e.g., Y/N) as to whether the
                       payment is for a commercial purchase
                       card issuer.

   July 29, 2009                                              Business Transformation Agency                                                   Page 167 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Execute_Payments_104   To support the payment process, the JFMIPSR-02-02,Pg41       FFMIA         Mandatory        FV        Disburse
                       agency's single integrated financial
                       management system must permit
                       payment to commercial purchase card
                       issuers prior to evidence of receipt or
                       performance.


Execute_Payments_105   To support the payment process, the JFMIPSR-02-02,Pg41       FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                        FV        Performance
                       management system must provide an                                                                     Schedule Payment
                       indicator (e.g., Y/N) as to whether the
                       associated contract has a fast
                       payment clause. If yes, the
                       contractor's invoice triggers payment.


Execute_Payments_106   To support the payment process, the JFMIPSR-02-02,Pg41,42    FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                                  Monitor Contract or Order
                       management system must access the                                                                     Performance
                       following information for
                       Intragovernmental payment and
                       collection (IPAC) transactions
                       • ALC contact;

                       • contact telephone number;

                       • contact email address;

                       • originating ALC;

                       • customer ALC;

                       • amount;

                       • obligating document number;

                       • PO number;

                       • invoice number;

                       • pay flag;

                       • quantity;

                       • unit price;

                       • unit of issue;

                       • sender Treasury account symbol
                       (e.g., appropriation); and
                       • receiver department code.




   July 29, 2009                                          Business Transformation Agency                                                   Page 168 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_107   To support the payment process, the JFMIPSR-02-02,Pg42           FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                                      Monitor Contract or Order
                       management system must Access the                                                                         Performance
                       following information for IPAC
                       adjustment transactions
                       • ALC contact;

                       • contact telephone number;

                       • contact email address;

                       • originating ALC;

                       • customer ALC;

                       • amount;

                       • original IPAC document reference
                       number;
                       • original date accomplished; and

                       • original accounting date.

Execute_Payments_108   To support the payment process, the JFMIPSR-02-02,Pg42           FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                                      Monitor Contract or Order
                       management system must access the                                                                         Performance
                       following information for IPAC zero-
                       dollar transactions
                       • ALC contact;

                       • contact telephone number;

                       • contact email address;

                       • originating ALC; and

                       • customer ALC.

Execute_Payments_11    To support the payment process, the    JFMIPSR-02-02,Pg44        FFMIA         Mandatory        FV        Distribute Payment
                       agency's single integrated financial
                       management system must verify that
                       electronic payments are within the
                       maximum amount specified in the
                       Treasury Financial Manual (TFM).


Execute_Payments_12    To support the payment process, the JFMIPSR-02-02,Pg44           FFMIA         Value Added      CSE       Establish Sourcing Vehicle with
                       agency's single integrated financial                                                                      Commercial Sources
                       management system should capture
                       vendor information required when
                       registering with the CCR and track
                       activity by CCR identifier (will become
                       mandatory upon issuance of
                       government wide implementing
                       standard requirements).




   July 29, 2009                                              Business Transformation Agency                                                  Page 169 of 742
                                                  Defense Financial Management Improvement Guidance

           Rule Name              Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_13    To support the payment process, the JFMIPSR-02-02,Pg44              FFMIA         Value Added      CSE       Establish Sourcing Vehicle with
                       agency's single integrated financial                                                                         Commercial Sources
                       management system should provide
                       an indicator (e.g., Y/N) as to whether
                       the contractor is registered through the
                       CCR (will become mandatory upon
                       issuance of government wide
                       implementing standard requirements).


Execute_Payments_14    To support the payment process, the       JFMIPSR-02-02,Pg44        FFMIA         Value Added      CSE       Establish Sourcing Vehicle with
                       agency's single integrated financial                                                                         Commercial Sources
                       management system should provide
                       an indicator (e.g., Y/N) as to whether
                       the contractor is exempt from
                       registering through the CCR (will
                       become mandatory upon issuance of
                       government wide implementing
                       standard requirements).


Execute_Payments_15    To support the payment process, the       JFMIPSR-02-02,Pg44        FFMIA         Value Added      FV        Maintain Accounts Payable Balance
                       agency's single integrated financial
                       management system should provide
                       the ability to produce aged accounts
                       payable information.


Execute_Payments_16    To support the payment process, the       JFMIPSR-02-02,Pg44        FFMIA         Value Added      CSE       Calculate Supply Chain Entitlement
                       agency's single integrated financial
                       management system should provide
                       the ability to cross-reference contract
                       numbers and related interagency
                       agreements.
Execute_Payments_17    To support the payment process, the JFMIPSR-02-02,Pg44              FFMIA         Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                               FV        Schedule Payment
                       management system should access
                       the following optional data elements of
                       the contract
                       • line item number; and

                       • estimated completion date.




   July 29, 2009                                                 Business Transformation Agency                                                  Page 170 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Execute_Payments_18    To support the payment process, the JFMIPSR-02-02,Pg44           FFMIA         Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                            FV        Schedule Payment
                       management system should access
                       the contract payment method (e.g.,
                       payment to be made by purchase card
                       or other non-invoice means, or
                       payment to be made by invoice) which
                       triggers a rejection of any invoice, if
                       the payment method specified by the
                       invoice differs from that allowed for in
                       the contract.



Execute_Payments_19    To support the payment process, the    JFMIPSR-02-02,Pg45        FFMIA         Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                            FV        Schedule Payment
                       management system should access
                       the names of individual(s) who must
                       approve the invoice before payment
                       can be made.


Execute_Payments_2     To support the Disbursing process, the OFFM-NO-0106,PMD          FFMIA         Mandatory        FV        Distribute Payment
                       Core financial system must provide                                                                        Schedule Payment
                       automated functionality to generate
                       the following identification on each
                       remittance, as allowed for by Treasury
                       payment file formats and National
                       Automated Clearing House
                       Association (NACHA) edits:
                       • Vendor invoice number(s) or account
                       number
                       • Obligating document number or other
                       reference number
                       • Discount, interest and offset
                       amounts.




   July 29, 2009                                              Business Transformation Agency                                                  Page 171 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Execute_Payments_20    To support the payment process, the JFMIPSR-02-02,Pg45            FFMIA         Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                             FV        Schedule Payment
                       management system should allow
                       contracting staff to determine whether
                       a contractor is a first-time contractor or
                       abuser of fast pay (so that contracting
                       can determine whether or not to
                       include a fast pay clause).


Execute_Payments_21    To support the payment process, the JFMIPSR-02-02,Pg45            FFMIA         Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                             FV        Schedule Payment
                       management system should enable
                       electronic receiving report processing,
                       submission of invoices, approval and
                       signatures, and notification alerts for
                       pending actions.


Execute_Payments_22    To support the payment process, the JFMIPSR-02-02,Pg45            FFMIA         Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                             FV        Schedule Payment
                       management system should provide
                       the ability to compare the electronic
                       invoice data elements (contract/order
                       number, description of items or
                       services, quantity, and price) to the
                       contract data and advice of "match" or
                       "no match.


Execute_Payments_23    To support the payment process, the     JFMIPSR-02-02,Pg45        FFMIA         Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                             FV        Schedule Payment
                       management system should provide
                       the ability to "forward" or make
                       available the invoice data to others
                       outside the finance office (receiving
                       and accepting personnel, contracting
                       office personnel) for receipt and
                       acceptance sign-offs on-line.




   July 29, 2009                                               Business Transformation Agency                                                 Page 172 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Execute_Payments_24    To support the payment process, the JFMIPSR-02-02,Pg45          FFMIA        Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                          FV        Schedule Payment
                       management system should record or
                       recognize if invoiced quantities
                       exceed, match or are less than
                       contract quantities, and keep track of
                       quantities yet to be invoiced or
                       received.


Execute_Payments_25    The computer system software must        DoDFMRVol1,Ch2,Add2D   DFMIR        Mandatory        CSE       Manage Supply Chain Entitlement
                       support the matching process, either
                       internally or through interface by:
                       a. Providing for the tracking and
                       warehousing of vendor invoice from
                       receipt of the invoice through
                       disbursement, including those invoices
                       returned to the vendor.
                       b. Providing a matching capability by
                       document including matching criteria
                       for non-commodity orders such as
                       subscriptions, memberships, and
                       training.
                       c. Allowing orders to be reopened by
                       authorized staff after final payment has
                       been made.



Execute_Payments_26    To support the Disbursing process, the OFFM-NO-0106,PMD         FFMIA        Mandatory        CSE       Calculate Interest
                       Core financial system must provide                                                            FV        Manage Supply Chain Entitlement
                       automated functionality to apply                                                                        Review Outstanding Interest Balance
                       interest and discount amounts across
                       multiple accounting lines on an invoice
                       using the ratio of the original invoice
                       accounting line amounts to the invoice
                       total.


Execute_Payments_27    To support the Disbursing process, the OFFM-NO-0106,PMD         FFMIA        Mandatory        CSE       Distribute Payment
                       Core financial system must provide                                                            FV        Monitor Payment
                       automated functionality to calculate                                                                    Schedule Payment
                       payment amounts and due dates using
                       Treasury rate tables, i.e., Prompt Pay
                       Act Interest rate and Current Value of
                       Funds rate.



   July 29, 2009                                           Business Transformation Agency                                                   Page 173 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Execute_Payments_28    To support the Invoicing process the    OFFM-NO-0106,PMC          FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide
                       automated functionality to capture up
                       to 9,999 document line items per
                       invoice document.
Execute_Payments_29    To support the Invoicing process the  OFFM-NO-0106,PMC            FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide
                       automated functionality to define
                       reason codes and related descriptions
                       for invoice processing errors in the
                       following categories:
                       • Advantageous discount lost

                       • Interest paid, and

                       • Improper payment made.




Execute_Payments_3     To support the Disbursing process, the OFFM-NO-0106,PMD           FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide                                                               FV        Schedule Payment
                       automated functionality to capture
                       prompt payment information required
                       by 5 CFR 1315, including discounts
                       taken, discounts lost, and interest
                       paid.




   July 29, 2009                                               Business Transformation Agency                                                 Page 174 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Execute_Payments_30    To support the Payment Follow-Up      OFFM-NO-0106,PME        FFMIA        Mandatory        CSE       Distribute Payment
                       process, the Core financial system                                                          FV        Monitor Payment
                       must provide automated functionality                                                                  Schedule Payment
                       to query invoice status information.
                       Parameters include: vendor number,
                       vendor name (legal, Doing Business
                       As (DBA) or division), TIN, DUNS
                       number and vendor invoice number.
                       List the selected invoices, their due
                       dates, the dates that the following
                       stages were reached and the number
                       of days between each date:
                       • Invoice received

                       • Invoice suspended due to validation
                       errors
                       • Invoice held

                       • Invoice returned to vendor

                       • Invoice resubmitted by vendor

                       • Invoice approved and warehoused

                       • Invoice scheduled for payment
                       (disbursement-in-transit)
                       • Invoice paid.




Execute_Payments_31    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Disburse
                       Core financial system must provide
                       automated functionality to export
                       Automated Clearing House (ACH)
                       payment files in the following
                       formats:
                       • Corporate Trade Exchange (CTX)
                       820 file
                       • CTX Flat File

                       • Cash Concentration or Disbursement
                       (CCD)
                       • CCD Plus Addendum (CCD+)

                       • Prearranged Payment and Deposit
                       (PPD)
                       • Prearranged Payment and Deposit
                       Plus Addendum (PPD+).




   July 29, 2009                                          Business Transformation Agency                                                   Page 175 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Execute_Payments_32    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide
                       automated functionality to validate that
                       employee ACH payments are
                       generated only as PPD or PPD+
                       payments.


Execute_Payments_33    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Disburse
                       Core financial system must provide
                       automated functionality to validate that
                       vendor ACH payments are generated
                       only as CCD, CCD+ or CTX formats.


Execute_Payments_34    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Create Electronic Fund Transfer File
                       Core financial system must provide
                       automated functionality to prevent the
                       creation of an EFT (Fedwire, ACH or
                       CTX) payment that does not contain a
                       RTN, bank account number and
                       account type (checking or savings).




   July 29, 2009                                          Business Transformation Agency                                                   Page 176 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_35    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Create Electronic Fund Transfer File
                       Core financial system must provide                                                                    Verify Information
                       automated functionality to validate that
                       EFT payment file data submitted to
                       Treasury will pass the following edits:
                       • Routing Transit Number (RTNs) exist
                       in the Financial Organization Master
                       File (FOMF) or other verified update
                       file, for the financial institution.
                       • RTNs pass the Modulus 10 check on
                       the validity of the check digit.
                       • RTNs for domestic banks are nine-
                       digits, numeric-only, and not all
                       zeroes
                       • RTNs for foreign banks are eight-
                       digits, alpha-numeric, and not all
                       zeroes
                       • Agency Location Codes (ALCs) are
                       eight-digits and numeric only.
                       • Taxpayer Identification Numbers are
                       nine-digits, numeric-only, and not all
                       zeroes.




Execute_Payments_36    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide
                       automated functionality to validate that
                       CTX vendor payments contain
                       properly structured remittance
                       information, as specified in the CTX
                       payment file's remittance record
                       format.
Execute_Payments_37    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Distribute Payment
                       Core financial system must provide                                                                    Generate Disbursement Pro Forma
                       automated functionality to generate                                                                   Entries
                       one bulk check payment file                                                                           Process Intra-Governmental Payment
                       regardless of payee type (employee or                                                                 and Collection
                       vendor).




   July 29, 2009                                          Business Transformation Agency                                                  Page 177 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Execute_Payments_38    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Disburse
                       Core financial system must provide
                       automated functionality to combine
                       ECS and SPS payment files with
                       multiple ALCs into single files for
                       transmission to Treasury. Include
                       summary totals (items and dollars) by
                       ALC and TAFS and for the entire file
                       for certification purposes.



Execute_Payments_39    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Disburse
                       Core financial system must provide
                       automated functionality to generate
                       CTX payment files that meet the
                       following specifications:
                       • Reflect balanced transactions (sum
                       of all remittance records equals the
                       transaction total).
                       • Include a valid settlement date (next
                       business day or later).
                       • Accommodate credit memos.


Execute_Payments_4     To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Distribute Payment
                       Core financial system must provide                                                                    Schedule Payment
                       automated functionality to generate
                       totals by Treasury Appropriation Fund
                       Symbol (TAFS) on each Electronic
                       Certification System (ECS) and
                       Secure Payment System (SPS)
                       payment file.


Execute_Payments_40    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Distribute Payment
                       Core financial system must provide                                                                    Schedule Payment
                       automated functionality to schedule
                       and disburse U.S. dollar payments (SF
                       1166) through the Treasury's ECS,
                       containing up to the limit of 60
                       payments per schedule (for non-
                       summary schedules) and 100
                       schedules for each ECS terminal per
                       day.



   July 29, 2009                                          Business Transformation Agency                                                   Page 178 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_41    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide
                       automated functionality to validate that
                       invoices selected for payment will not
                       disburse a fund into a negative cash
                       position. Notify the agency of invoices
                       that fail this edit.


Execute_Payments_42    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Determine If Receivable Can Be Offset
                       Core financial system must provide
                       automated functionality to prevent
                       agency offset of vendor payments
                       based on agency-defined criteria such
                       as accounting classification elements,
                       vendor number, and vendor Central
                       Contractor Registration (CCR)
                       business type.


Execute_Payments_43    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Distribute Payment
                       Core financial system must provide                                                          FV        Monitor Contract or Order
                       automated functionality to maintain a                                                                 Performance
                       sequential numbering system for                                                                       Schedule Payment
                       scheduling payments to be made by
                       the disbursing office. Define different
                       schedule number ranges for different
                       payment types, such as travel
                       schedules, transportation schedules,
                       payroll schedules, vendor schedules,
                       etc. Generate appropriate and unique
                       schedule numbers for the payments
                       scheduled for disbursement.




   July 29, 2009                                          Business Transformation Agency                                                  Page 179 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_44    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Distribute Payment
                       Core financial system must provide                                                          FV        Monitor Contract or Order
                       automated functionality to generate                                                                   Performance
                       the reversal of an entire payment                                                                     Schedule Payment
                       schedule or a single payment within a
                       payment schedule based on a single,
                       online action. Generate disbursement-
                       in-transit reversal entries, record the re-
                       established accounts payable, and
                       update related payment records.



Execute_Payments_45    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Distribute Payment
                       Core financial system must provide                                                          FV        Monitor Contract or Order
                       automated functionality to capture the                                                                Performance
                       TAFS associated with each payment                                                                     Schedule Payment
                       in ECS, SPS and Bulk
                       Vendor/Miscellaneous payment files.



Execute_Payments_46    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Distribute Payment
                       Core financial system must provide
                       automated functionality to export
                       National Automated Clearing House
                       Association (NACHA) payment
                       formats for Non-Treasury Disbursing
                       Officers (DOs).


Execute_Payments_47    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Distribute Payment
                       Core financial system must provide
                       automated functionality to distribute
                       the payment of a single invoice to
                       multiple bank accounts.




   July 29, 2009                                          Business Transformation Agency                                                  Page 180 of 742
                                                 Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                     Primary Reference       Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_48    To support the Disbursing process, the 5CFRVol3,ChIII,Pt1315          FFMIA        Mandatory        CSE       Distribute Payment
                       Core financial system must provide       OFFM-NO-0106,PMD                                           FV        Monitor Contract or Order
                       automated functionality to query                                                                              Performance
                       preliminary payment schedule data.                                                                            Schedule Payment
                       Identify a sample of invoices for
                       certification based on agency-defined
                       sampling criteria and the payment due
                       date. Result is a list of invoice
                       document numbers with drill down to
                       invoice details, including data required
                       on a proper vendor invoice per 5 CFR
                       1315.


Execute_Payments_49    To support the Reconciliation and        OFFM-NO-0106,FBC             FFMIA        Mandatory        CSE       Distribute Payment
                       Reporting process, the Core financial    TFMVol1,Pt6,Ch8500,Sec8530                                 FV        Monitor Contract or Order
                       system must provide automated            TFMVol1,Pt6,Ch8500,Sec8535                                           Performance
                       functionality to generate the Cash                                                                            Schedule Payment
                       Forecasting Report. Result is a report
                       with payment and deposit amounts at
                       a detail suitable for reporting large
                       dollar notifications as described in I
                       TFM-6-8500, Cash Forecasting
                       Requirements.


Execute_Payments_5     To support the Disbursing process, the OFFM-NO-0106,PMD               FFMIA        Mandatory        FV        Create Electronic Fund Transfer File
                       Core financial system must provide                                                                            Create Wire Transfer File
                       automated functionality to export                                                                             Manage Execution with Treasury
                       check and EFT payment files in the
                       current Treasury FMS defined formats.


Execute_Payments_50    To support the Disbursing process, the OFFM-NO-0106,PMD               FFMIA        Mandatory        CSE       Distribute Payment
                       Core financial system must provide                                                                  FV        Monitor Payment
                       automated functionality to schedule                                                                           Schedule Payment
                       and disburse U.S. dollar payments (SF
                       1166) through the Treasury's SPS
                       containing up to the limit of 60
                       payments per schedule (for non-
                       summary schedules).




   July 29, 2009                                                Business Transformation Agency                                                    Page 181 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Execute_Payments_51    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide
                       automated functionality to notify
                       vendors of payments that have been
                       offset by credit memos. Specify the
                       invoice number, invoice amount, offset
                       amount, payment amount and
                       payment date.


Execute_Payments_52    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Disburse
                       Core financial system must provide
                       automated functionality to capture
                       payment terms on obligations that are
                       different than those specified on the
                       associated vendor record.


Execute_Payments_53    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Apply Collection
                       Core financial system must provide                                                          FV        Calculate Interest
                       automated functionality to define the                                                                 Manage Supply Chain Entitlement
                       default for recording late payment
                       interest, i.e., to the same accounting
                       classification as the original payment
                       or to another specified accounting
                       classification in the same fund as the
                       original payment.


Execute_Payments_54    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide
                       automated functionality to select and
                       process warehoused invoices for
                       manual payment.




   July 29, 2009                                          Business Transformation Agency                                                   Page 182 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Execute_Payments_55    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Apply Collection
                       Core financial system must provide                                                          FV        Calculate Interest
                       automated functionality to query                                                                      Manage Supply Chain Entitlement
                       disbursement data. Parameters
                       include accounting period range,
                       disbursement type(s) to be included.
                       Provide an option to exclude credit
                       card transactions. Result is the total
                       number of payments made on time by
                       disbursement type. Query returns total
                       number of on-time and late payments
                       made based on due date.




Execute_Payments_56    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       Core financial system must provide                                                                    Monitor Contract or Order
                       automated functionality to capture the                                                                Performance
                       following additional information for
                       Intra-governmental Payment and
                       Collection (IPAC) transactions:
                       • Sender/originator TAS

                       • Sender ALC

                       • Sender Standard General Ledger
                       (SGL) account
                       • Sender BETC

                       • Sender DO symbol

                       • Sender DUNS number

                       • Sender DUNS+4 number

                       • Customer/receiver TAS

                       • Customer ALC

                       • Customer SGL account

                       • Customer DUNS number

                       • Customer DUNS+4 number

                       • Customer BETC

                       • Customer Department Code.




   July 29, 2009                                          Business Transformation Agency                                                 Page 183 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)              BPM Process(es)

Execute_Payments_57    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Monitor Contract or Order
                       Core financial system must provide                                                                    Performance
                       automated functionality to capture the
                       following additional information with
                       IPAC reclassifications:
                       • Original DO symbol

                       • Voucher number.


Execute_Payments_58    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Collect
                       Core financial system must provide                                                                    Disburse
                       automated functionality to capture
                       SGL comments with IPAC
                       disbursement and collection
                       transactions.
Execute_Payments_59    To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        CSE       Apply Collection
                       Core financial system must provide                                                          FV        Calculate Interest
                       automated functionality to export a                                                                   Manage Supply Chain Entitlement
                       bulk file in the currently required
                       format for uploading the following
                       interagency transactions to IPAC:
                       • Payment

                       • Collection

                       • Adjustment

                       • Zero dollar

                       • SGL posting.


Execute_Payments_6     To support the Disbursing process, the OFFM-NO-0106,PMD       FFMIA        Mandatory        FV        Manage General Ledger
                       Core financial system must provide                                                                    Post to General Ledger
                       automated functionality to record
                       payment transactions from other
                       systems, such as payroll and travel.
                       Identify whether or not disbursement
                       has already been made, and record
                       the United States Standard General
                       Ledge (USSGL) prescribed general
                       ledger entries. Schedule those
                       disbursements not already made for
                       payment through the Core financial
                       system.




   July 29, 2009                                          Business Transformation Agency                                                   Page 184 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_60    To support the Disbursing process, the OFFM-NO-0106,PMD        FFMIA        Mandatory        CSE       Disburse
                       Core financial system must provide                                                           FV        Manage Liabilities
                       automated functionality to record                                                                      Manage Supply Chain Entitlement
                       vendor credit memoranda as accounts                                                                    Post to General Ledger
                       receivable or negative accounts
                       payable.


Execute_Payments_61    To support the Disbursing process, the OFFM-NO-0106,PMD        FFMIA        Mandatory        FV        Manage Execution Fund Account
                       Core financial system must provide
                       automated functionality to, for
                       payments that reference obligations in
                       cancelled funds, the system must
                       bring forward accounting and non-
                       financial information from the original
                       obligation document to an invoice in
                       the current year.


Execute_Payments_62    To add value to the Disbursing         OFFM-NO-0106,PMD        FFMIA        Value Added      CSE       Manage Supply Chain Entitlement
                       process, the Core financial system
                       should provide automated functionality
                       to calculate payments to foreign
                       vendors based on current exchange
                       rates.
Execute_Payments_63    To add value to the Disbursing          OFFM-NO-0106,PMD       FFMIA        Value Added      FV        Create Electronic Fund Transfer File
                       process, the Core financial system                                                                     Validate Ready to Pay File Information
                       should provide automated functionality
                       to generate foreign payment file
                       formats, including International Direct
                       Deposit (IDD).
Execute_Payments_64    To support the payment process, the JFMIPSR-02-02,Pg35         FFMIA        Mandatory        FV        Validate Customer Information
                       agency's single integrated financial
                       management system must access the
                       contractor's nine digit, numeric TIN
                       and DUNS identification.


Execute_Payments_65    To support the payment process, the JFMIPSR-02-02,Pg35         FFMIA        Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                   Performance
                       management system must provide an
                       indicator (e.g., Y/N) as to whether
                       payments to the contractor are exempt
                       from Electronic Fund Transfer (EFT).




   July 29, 2009                                           Business Transformation Agency                                                  Page 185 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_66    To support the payment process, the JFMIPSR-02-02,Pg35       FFMIA        Mandatory        FV        Create Electronic Fund Transfer File
                       agency's single integrated financial                                                                 Validate Ready to Pay File Information
                       management system must provide
                       access to the following information
                       related to an EFT payment
                       • contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); PO number (including
                       modification number, if any); Blanket
                       Purchase Agreement (BPA) number
                       and all associated BPA call numbers
                       (including modification number, if any);
                       name and remittance address;
                       • signature, title, and telephone
                       number of the contractor official
                       authorized to provide EFT
                       information;
                       • name, address, and nine-digit routing
                       and transit number (RTN) of the
                       contractor's financial agent;
                       • contractor's account number and
                       type of account (checking, savings, or
                       lockbox);
                       • the Fedwire Transfer System
                       telegraphic abbreviation of the
                       contractor's financial agent; and
                       • the name, address, telegraphic
                       abbreviation, and nine-digit RTN of the
                       financial institution receiving the wire
                       transfer payment if the contractor's
                       financial agent is not connected
                       directly to the Fedwire Transfer
                       System online.




   July 29, 2009                                         Business Transformation Agency                                                  Page 186 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_67    To support the payment process, the JFMIPSR-02-02,Pg35,36    FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                  Performance
                       management system must access the
                       following information related to the
                       contract:
                       • contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); Purchase Order (PO)
                       number (including modification
                       number, if any); BPA number and all
                       associated BPA call numbers
                       (including modification number, if
                       any)
                       • award date;

                       • obligating document number (if
                       different from contract number);
                       • contractor name and address,
                       including any previous company
                       name(s) used for the particular
                       contract;
                       • contract administration office;

                       • payment office;

                       • product or service description;

                       • unit of measure;

                       • unit price;

                       • extended price;

                       • quantity;

                       • payment terms and conditions (e.g.,
                       discount terms, applicable payment
                       clauses, withhold indicator, withhold
                       percentage, etc.);
                       • payment type (e.g., advance pay,
                       progress pay, or partial pay);
                       • accounting information;

                       • names of government-designated
                       receiving, certifying, and acceptance
                       officials;
                       • variance amount or percentage
Execute_Payments_68    To support the payment process, the JFMIPSR-02-02,Pg36       FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must provide
                       access to a protest decision that
                       resulted in the award of costs.



   July 29, 2009                                          Business Transformation Agency                                                  Page 187 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Execute_Payments_69    To support the payment process, the JFMIPSR-02-02,Pg36       FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must access the
                       specified duration of land rights
                       acquired.
Execute_Payments_7     To support the payment process, the JFMIPSR-02-02,Pg42,43    FFMIA         Mandatory        FV        Establish Customer Information
                       agency's single integrated financial                                                                  Validate Customer Information
                       management system must provide
                       access to the following information for
                       purchase card payments:
                       • card number;

                       • accounting data associated with card
                       number;
                       • FY;

                       • appropriation/Treasury fund symbol;

                       • organization code;

                       • cost center;

                       • object class;

                       • project code;

                       • program code; and

                       • individual name/office name of
                       cardholder.




Execute_Payments_70    To support the payment process, the JFMIPSR-02-02,Pg36       FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must access any
                       restrictions on the use or convertibility
                       of general property, plant and
                       equipment (PP&E) acquired, e.g., land
                       donated to an agency for its use with
                       the provision that if the agency ceases
                       operations at that location, the land
                       would revert back to the donor.




   July 29, 2009                                          Business Transformation Agency                                                  Page 188 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Execute_Payments_71    To support the payment process, the    JFMIPSR-02-02,Pg36        FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must provide
                       access to the following required
                       information associated with the
                       payment for PP&E acquired under
                       lease
                       • lease agreement and terms;

                       • amount of lease; and

                       • discount rate (if a lease).

Execute_Payments_72    To support the payment process, the JFMIPSR-02-02,Pg36           FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must access the
                       costs and asset identifier(s)
                       associated with the cleanup of PP&E.


Execute_Payments_73    To support the payment process, the JFMIPSR-02-02,Pg36           FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must access the
                       asset identifier and/or project/program
                       code and asset category (e.g., national
                       defense assets, multi-use heritage
                       assets, and investments in non-
                       Federal property) associated with the
                       payment.




   July 29, 2009                                              Business Transformation Agency                                                 Page 189 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_74    To support the payment process, the JFMIPSR-02-02,Pg37          FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must access the
                       following information associated with
                       acquisitions related to software
                       development
                       • total acquisition costs by line item
                       description of phase (e.g., completion
                       of conceptual formulation, design, and
                       testing);
                       • transaction purpose (e.g., acquisition,
                       data conversion, or repair);
                       • asset identifier or associated
                       project/program; and
                       • elements of products and services
                       acquired, e.g., training, licenses, and
                       manuals.



Execute_Payments_75    To support the payment process, the JFMIPSR-02-02,Pg37          FFMIA        Mandatory        CSE       Monitor Payment
                       agency's single integrated financial   JFMIPSR-02-02,Pg37
                       management system must access
                       assignment of claim information, as in
                       the case of a bankruptcy or court
                       ordered restructuring, to ensure
                       payment is made in accordance with
                       the assignment.


Execute_Payments_76    To support the payment process, the JFMIPSR-02-02,Pg37          FFMIA        Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial JFMIPSR-02-02,Pg37                                                 Performance
                       management system must access the
                       contract terms regarding delivery or
                       constructive delivery.


Execute_Payments_77    To support the payment process, the JFMIPSR-02-02,Pg37          FFMIA        Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial JFMIPSR-02-02,Pg37                                                 Performance
                       management system must access the
                       advance/prepayment terms associated
                       with a contract financing agreement.




   July 29, 2009                                           Business Transformation Agency                                                   Page 190 of 742
                                                  Defense Financial Management Improvement Guidance

           Rule Name              Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_78    To support the payment process, the       JFMIPSR-02-02,Pg37        FFMIA         Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must provide
                       access to the bill, invoice, or written
                       request for payment.
Execute_Payments_79    To support the payment process, the JFMIPSR-02-02,Pg37,38           FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                         Performance
                       management system must access the
                       following proper invoice information
                       • name and address of contractor;

                       • contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); PO number (including
                       modification number, if any); BPA
                       number and all associated BPA call
                       numbers (including modification
                       number, if any);
                       • description of products or services for
                       each item;
                       • quantity for each item;

                       • unit of measure for each item;

                       • unit price for each item;

                       • extended price for each item;

                       • total invoice amount;

                       • shipping terms;

                       • payment terms;

                       • name and address of contractor
                       official to whom payment is to be
                       sent;
                       • name, title, phone number, and
                       mailing address of person to notify if
                       invoice is defective;
                       • invoice date;

                       • invoice receipt date;

                       • proper invoice date;

                       • proper invoice receipt date;

                       • transportation costs;

                       • prompt payment terms;

                       • vendor invoice number; and

                       • proper invoice acceptance date.




   July 29, 2009                                                 Business Transformation Agency                                                  Page 191 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference     Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Execute_Payments_8     To support the payment process, the JFMIPSR-02-02,Pg43,44    FFMIA         Mandatory        FV        Manage General Ledger
                       agency's single integrated financial
                       management system must support the
                       following pre-audit verifications
                       • contract number is valid, and payee
                       name is correct;
                       • required administrative authorizations
                       for the procurement and approvals for
                       payment were obtained (names, titles,
                       and phone numbers);
                       • Taxpayer Identification Number (TIN)
                       or payee ID number provided;
                       • payment is not a duplicate payment;

                       • delivered items or services are in
                       accordance with the contract
                       (quantities, prices, and amounts);
                       • payment amount is in accordance
                       with the contract (including any
                       adjustments);
                       • payment tracking control number,
                       i.e., the number that links the invoice
                       to the government payment;
                       • description of items and services,
                       quantity, and price on the invoice
                       match the same elements in the
                       contract to ensure that the correct
                       contract/order number has been cited
                       by the vendor, the correct obligation
                       charged, and only contracted
                       items/services and quantities are paid
                       for;
                       • cost effective discounts have been
                       taken;
                       • all applicable deductions were made
                       and credited to the proper account in
                       the correct amount;
                       • receipt, acceptance and payment are
                       matched to funding source(s) in
                       accordance with the contract; and




   July 29, 2009                                          Business Transformation Agency                                                 Page 192 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_80    To support the payment process, the JFMIPSR-02-02,Pg38       FFMIA        Mandatory        CSE       Monitor Payment
                       agency's single integrated financial
                       management system must provide an
                       indicator to mark whether an invoice
                       has been paid (including Treasury
                       schedule and trace number).


Execute_Payments_81    To support the payment process, the JFMIPSR-02-02,Pg38       FFMIA        Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                 Performance
                       management system must access the
                       estimated cost of work completed by a
                       contractor for facilities or equipment
                       constructed or manufactured by
                       contractors in accordance with
                       contract specifications.


Execute_Payments_82    To support the payment process, the JFMIPSR-02-02,Pg38       FFMIA        Mandatory        CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial
                       management system must access the
                       following information from the
                       receiving report
                       • contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); PO number (including
                       modification number, if any); BPA
                       number and all associated BPA call
                       numbers (including modification
                       number, if any);
                       • description of products delivered or
                       services performed;
                       • quantity of items delivered;

                       • unit of measure;

                       • date products delivered, or dates
                       from/to services performed;
                       • date products received; and

                       • signature, printed name, phone
                       number, and mailing address of
                       receiving official.




   July 29, 2009                                         Business Transformation Agency                                                  Page 193 of 742
                                               Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_83    To support the payment process, the 5CFRVol3,ChIII,Pt1315         FFMIA        Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial       JFMIPSR-02-02,Pg39                                             Performance
                       management system must access the
                       following acceptance information
                       • contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); PO number (including
                       modification number, if any); BPA
                       number and all associated BPA call
                       numbers (including modification
                       number, if any);
                       • product or service description;

                       • unit of measure;

                       • delivery/performance schedule;

                       • quantities accepted;

                       • quantity rejected;

                       • date rejected (returned);

                       • date products delivered or dates
                       from/to services performed;
                       • receipt date;

                       • acceptance of products and services
                       date;
                       • progress payment approval date;

                       • signature (or electronic alternative) of
                       acceptance official;
                       • name, title, phone number, and
                       mailing address of acceptance official;
                       and
                       • interest calculation date in
                       accordance with Title 5, Part 1315 of
                       the Code of Federal Regulations
                       (CFR).




   July 29, 2009                                             Business Transformation Agency                                                   Page 194 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_84    To support the payment process, the JFMIPSR-02-02,Pg39           FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                      Performance
                       management system must access the
                       following information associated with
                       final acceptance at closeout relative to
                       final payment
                       • date of acceptance;

                       • evidence of performance (e.g.,
                       receiving report approved by
                       designated official); and
                       • receipt of products and services.


Execute_Payments_85    To support the payment process, the    JFMIPSR-02-02,Pg39,40     FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                      Performance
                       management system must provide
                       notification that receipt and
                       acceptance of products/services has
                       occurred, title has passed, terms of
                       the contract have been met, or
                       progress under the contract has been
                       made for a contract financing
                       payment.

Execute_Payments_86    To support the payment process, the JFMIPSR-02-02,Pg40           FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                      Performance
                       management system must access the
                       acquisition cost of each item and the
                       proper accounting classification.


Execute_Payments_87    To support the payment process, the    JFMIPSR-02-02,Pg40        FFMIA         Mandatory        CSE       Disburse
                       agency's single integrated financial                                                            FV        Monitor Contract or Order
                       management system must provide                                                                            Performance
                       evidence of performance indicator if
                       payment was made prior to
                       performance in accordance with the
                       fast or advance payment clause.


Execute_Payments_88    To support the payment process, the JFMIPSR-02-02,Pg40           FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                      Performance
                       management system must provide
                       access to information on the history of
                       contractor deficiencies to determine if
                       fast pay abuse exists.


   July 29, 2009                                              Business Transformation Agency                                                  Page 195 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_89    To support the payment process, the JFMIPSR-02-02,Pg40           FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                      Performance
                       management system must access the
                       contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); PO number (including
                       modification number,
                       if any); BPA number and all associated
                       BPA call numbers (including
                       modification number, if any);
                       • contractor invoice number;

                       • total invoice amount; and

                       • name and address of contractor
                       official to whom payment is to be sent.




Execute_Payments_9     To support the payment process, the    JFMIPSR-02-02,Pg44        FFMIA         Mandatory        FV        Obtain Payee's Signature
                       agency's single integrated financial
                       management system must verify that
                       the appropriate government officials
                       have signed the appropriate form
                       authorizing payment.


Execute_Payments_90    To support the payment process, the JFMIPSR-02-02,Pg40           FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                            FV        Performance
                       management system must access the                                                                         Obtain Payee's Signature
                       name, signature, and phone number of
                       financial approving and certifying
                       officers for a voucher.


Execute_Payments_91    To support the payment process, the JFMIPSR-02-02,Pg40           FFMIA         Mandatory        FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system must access the
                       appropriation or fund symbol for each
                       voucher.
Execute_Payments_92    To support the payment process, the    JFMIPSR-02-02,Pg40        FFMIA         Mandatory        CSE       Maintain Accounts Receivable
                       agency's single integrated financial                                                            FV        Balances
                       management system must provide                                                                            Manage Supply Chain Entitlement
                       partial payment indicator.




   July 29, 2009                                              Business Transformation Agency                                                  Page 196 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_93    To support the payment process, the JFMIPSR-02-02,Pg40            FFMIA         Mandatory        CSE       Finalize Acceptance for Other Goods
                       agency's single integrated financial                                                                       and Services
                       management system must provide the                                                                         Manage Supply Chain Entitlement
                       ability to recognize, for an invoice, that
                       supplies or services have been
                       received and accepted.


Execute_Payments_94    To support the payment process, the JFMIPSR-02-02,Pg40            FFMIA         Mandatory        CSE       Distribute Payment
                       agency's single integrated financial                                                             FV        Monitor Contract or Order
                       management system must provide the                                                                         Performance
                       ability to make payment without an                                                                         Schedule Payment
                       invoice based on the contract
                       schedule of payment.
Execute_Payments_95    To support the payment process, the JFMIPSR-02-02,Pg40,41         FFMIA         Mandatory        FV        Perform Collection and Disbursement
                       agency's single integrated financial
                       management system must access the
                       following information associated with
                       the payment of an asset
                       • asset identifier code(s);

                       • total asset or improvement costs,
                       broken out by land or
                       structures/buildings (if possible and
                       significant);
                       • category of PP&E (e.g., heritage
                       assets, multi-use assets, general
                       PP&E, stewardship);
                       • quantity.


Execute_Payments_96    To support the payment process, the JFMIPSR-02-02,Pg41            FFMIA         Mandatory        CSE       Monitor Payment
                       agency's single integrated financial                                                             FV        Schedule Payment
                       management system must provide the
                       capability to flag payments for
                       accelerated/special processing.


Execute_Payments_97    To support the payment process, the     JFMIPSR-02-02,Pg41        FFMIA         Mandatory        CSE       Monitor Contract or Order
                       agency's single integrated financial                                                                       Performance
                       management system must identify
                       project(s) associated with a payment.




   July 29, 2009                                               Business Transformation Agency                                                  Page 197 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Execute_Payments_98                  To support the payment process, the    JFMIPSR-02-02,Pg41        FFMIA         Mandatory        CSE       Monitor Contract or Order
                                     agency's single integrated financial                                                                      Performance
                                     management system must match
                                     receipt, acceptance and payment to
                                     funding source(s) in accordance with
                                     contract.
Execute_Payments_99                  To support the payment process, the JFMIPSR-02-02,Pg41           FFMIA         Mandatory        CSE       Manage Execution Fund Account
                                     agency's single integrated financial                                                            FV        Monitor Contract or Order
                                     management system must provide the                                                                        Performance
                                     total amount paid and the amount of
                                     funds remaining for each contract,
                                     delivery order, task order, and BPA
                                     call.
Federal_Employment_Related_Retire The benefit system must support the       JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_1                    benefits application information store                                                                       Separate or Terminate Human
                                  data requirements for Federal                                                                                Resources
                                  employment related retirement by                                                                             Sustain Human Resources
                                  capturing the date of final separation.


Federal_Employment_Related_Retire The benefit system must support the       JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_2                    benefits application information store                                                                       Manage Human Resources
                                  data requirements for Federal                                                                                Compensation and Reimbursements
                                  employment related retirement by                                                                             Separate or Terminate Human
                                  capturing the lump sum (refund of                                                                            Resources
                                  contributions) distributions versus                                                                          Sustain Human Resources
                                  annuity distributions.


Federal_Employment_Related_Retire The benefit system must support the       JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_3                    benefits application information store                                                                       Manage Human Resources
                                  data requirements for Federal                                                                                Compensation and Reimbursements
                                  employment related retirement by                                                                             Separate or Terminate Human
                                  capturing the annuity selection (e.g.,                                                                       Resources
                                  self-only, self and reduced survivor,                                                                        Sustain Human Resources
                                  self and maximum survivor).


Federal_Employment_Related_Retire The benefit system must support the       JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_4                    benefits application information store                                                                       Separate or Terminate Human
                                  data requirements for Federal                                                                                Resources
                                  employment related retirement by                                                                             Sustain Human Resources
                                  capturing the spouse's name, date of
                                  birth, social security number and date
                                  of marriage when applicable.



    July 29, 2009                                                           Business Transformation Agency                                                  Page 198 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Federal_Employment_Related_Retire The benefit system must support the      JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_5                    benefits application information store                                                                      Separate or Terminate Human
                                  data requirements for Federal                                                                               Resources
                                  employment related retirement by                                                                            Sustain Human Resources
                                  capturing the present marital status.


Federal_Employment_Related_Retire The benefit system must support the      JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_6                    benefits application information store                                                                      Manage Human Resources
                                  data requirements for Federal                                                                               Compensation and Reimbursements
                                  employment related retirement by                                                                            Separate or Terminate Human
                                  capturing the name, date of birth,                                                                          Resources
                                  social security number and dates of                                                                         Sustain Human Resources
                                  marriage and divorce of former
                                  spouses who have a court ordered
                                  annuity.

Federal_Employment_Related_Retire The benefit system must support the      JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_7                    benefits application information store                                                                      Manage Human Resources
                                  data requirements for Federal                                                                               Compensation and Reimbursements
                                  employment related retirement by                                                                            Separate or Terminate Human
                                  capturing the percentage or dollar                                                                          Resources
                                  amount of court ordered former                                                                              Sustain Human Resources
                                  spouse annuity.


Federal_Employment_Related_Retire The benefit system must support the JFMIPSR-01-01,pg44             FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_8                    benefits application information store                                                                      Manage Human Resources
                                  data requirements for Federal                                                                               Compensation and Reimbursements
                                  employment related retirement by                                                                            Separate or Terminate Human
                                  capturing the highest pay scale (grade)                                                                     Resources
                                  level or amount of highest salary and                                                                       Sustain Human Resources
                                  related dates.


Federal_Employment_Related_Retire The benefit system must support the      JFMIPSR-01-01,pg44        FFMIA         Mandatory        PV        Manage Benefits
ment_Systems_9                    benefits application information store                                                                      Manage Human Resources
                                  data requirements for Federal                                                                               Compensation and Reimbursements
                                  employment related retirement by                                                                            Separate or Terminate Human
                                  capturing the voluntary separation                                                                          Resources
                                  monetary incentive.                                                                                         Sustain Human Resources




    July 29, 2009                                                          Business Transformation Agency                                                 Page 199 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Federally_Administered_Retirement_S The benefit system must capture the   JFMIPSR-01-01,pg43          FFMIA        Mandatory        PV        Manage Benefits
ystems_1                            effective date of retirement if the                                                                       Manage Human Resources
                                    system is a Federally administered                                                                        Compensation and Reimbursements
                                    retirement system.                                                                                        Separate or Terminate Human
                                                                                                                                              Resources
                                                                                                                                              Sustain Human Resources


Federally_Administered_Retirement_S The benefit system must capture claim JFMIPSR-01-01,pg43          FFMIA        Mandatory        PV        Manage Benefits
ystems_2                            holder and or claimant dependency                                                                         Separate or Terminate Human
                                    information (e.g., children, parents) if                                                                  Resources
                                    the system is a Federally administered                                                                    Sustain Human Resources
                                    retirement system.


Federally_Administered_Retirement_S The benefit system must capture         JFMIPSR-01-01,pg43        FFMIA        Mandatory        PV        Manage Benefits
ystems_3                            dates of creditable employment of the                                                                     Manage Human Resources
                                    claim holder (and military service when                                                                   Compensation and Reimbursements
                                    used in determining eligibility and the                                                                   Separate or Terminate Human
                                    amount of benefits) if the system is a                                                                    Resources
                                    Federally administered retirement                                                                         Sustain Human Resources
                                    system.


Federally_Administered_Retirement_S The benefit system must capture          JFMIPSR-01-01,pg43       FFMIA        Mandatory        PV        Manage Benefits
ystems_4                            historical earnings data (e.g., previous                                                                  Manage Human Resources
                                    annual wages and salary) of the claim                                                                     Compensation and Reimbursements
                                    holder that used required for                                                                             Separate or Terminate Human
                                    determining eligibility or the amount of                                                                  Resources
                                    benefit if the system is a Federally                                                                      Sustain Human Resources
                                    administered retirement system.


Federally_Administered_Retirement_S The benefit system must capture total JFMIPSR-01-01,pg43          FFMIA        Mandatory        PV        Manage Benefits
ystems_5                            participant and employer contributions                                                                    Manage Human Resources
                                    to the retirement plan made on behalf                                                                     Compensation and Reimbursements
                                    of the participant if the system is a                                                                     Separate or Terminate Human
                                    Federally administered retirement                                                                         Resources
                                    system.
Federally_Administered_Retirement_S The benefit system should capture     JFMIPSR-01-01,pg44          FFMIA        Value Added      PV        Manage Benefits
ystems_6                            current balance of vested employee
                                    and employer contributions if the
                                    system is a Federally administered
                                    retirement system.




    July 29, 2009                                                         Business Transformation Agency                                                  Page 200 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Federally_Administered_Retirement_S The benefit system should capture    JFMIPSR-01-01,pg44          FFMIA        Value Added      PV        Manage Benefits
ystems_7                            other names under which the claim                                                                        Sustain Human Resources
                                    holder has used (such as maiden
                                    name) if the system is a Federally
                                    administered retirement system.
Federally_Administered_Retirement_S The benefit system should capture    JFMIPSR-01-01,pg44          FFMIA        Value Added      PV        Manage Benefits
ystems_8                            phone number of claimant if the                                                                          Sustain Human Resources
                                    system is a Federally administered
                                    retirement system.
Federally_Administered_Retirement_S The benefit system should capture       JFMIPSR-01-01,pg44       FFMIA        Value Added      PV        Manage Benefits
ystems_9                            other unique identifying numbers if the                                                                  Sustain Human Resources
                                    system is a Federally administered
                                    retirement system.
Financial_Reporting_1                To support the Financial Reporting     OFFM-NO-0106,GLG         FFMIA        Mandatory        FV        Prepare Final Period End or On
                                     process, the Core financial system                                                                      Demand Financial Statement
                                     must provide automated functionality
                                     to generate the following consolidated
                                     agency financial statements:
                                     • Balance Sheet

                                     • Statement of Net Cost

                                     • Statement of Changes in Net
                                     Position
                                     • Statement of Budgetary Resources

                                     • Statement of Financing

                                     • Statement of Custodial Activity (if
                                     applicable).
                                     Parameter is the accounting period
                                     end date. Reports are to be generated
                                     from the general ledger account
                                     balances and attributes cross walked
                                     in accordance with the USSGL
                                     Crosswalks to Standard External
                                     Reports. Results are reports in
                                     accordance with the current OMB
                                     Bulletin on Form and Content of
                                     Agency Financial Statements.




    July 29, 2009                                                        Business Transformation Agency                                                   Page 201 of 742
                                                 Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_10   To support the Reconciliation and        OFFM-NO-0106,FBC       FFMIA        Mandatory        FV        Capture Financial Transaction Report
                         Reporting process, the Core financial
                         system must provide automated
                         functionality to generate the FMS 224
                         Transaction Detail Report. Parameter
                         is the accounting period. Result is a
                         report listing the detailed transactions
                         supporting each TAS total reported in
                         each section of the FMS 224. Detailed
                         transactions must include:
                         • Agency Location Codes (ALC)

                         • Treasury Account Symbol (TAS)

                         • Transaction amount

                         • Confirmation date

                         • Transaction document number or
                         Treasury document number.
                         Separate report totals for
                         disbursement and receipt activity by
                         ALC and TAS must be provided.




Financial_Reporting_11   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ             FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must deliver
                         an integrated ad hoc query capability
                         to support agency access to and
                         analysis of system maintained
                         financial data.
Financial_Reporting_12   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ             FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must deliver
                         the capability to preview a query, form,
                         report, or other result before printing.




    July 29, 2009                                             Business Transformation Agency                                                  Page 202 of 742
                                                Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                   Primary Reference          Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_13   To support the Document Referencing OFFM-NO-0106,SMC                  FFMIA        Mandatory        FV        Perform Financial Reporting
                         and Modification process, the Core
                         financial system must provide
                         automated functionality to query
                         documents. Parameter includes any
                         document number. Result is a list of all
                         document numbers in the document's
                         processing chain with document
                         statuses and balances at the
                         document level. Drill-down from each
                         document number to its document
                         details (e.g., vendor/customer name,
                         description and amount).




Financial_Reporting_14   The system must allow the reporting       DoDFMRVol6B,Ch2,Sub020102   DFMIR        Mandatory        FV        Request, Collect, and Analyze
                         entity, who is primarily responsible, the                                                                     Narrative and or Footnote Information
                         ability to prepare the narrative
                         explanation statements to the notes.
                         When comparative statements are
                         required, the reporting entity shall
                         explain in the notes significant year-to-
                         year changes in amounts reported on
                         lines of the Principal Statements.



Financial_Reporting_15   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ                   FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must deliver
                         the capability to define parameter-
                         based query scripts that can be
                         queued for execution, stored for re-use
                         and shared with other authorized
                         agency users.


Financial_Reporting_16   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ                   FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must
                         process submitted queries and queue
                         output on-line for access by authorized
                         users.




    July 29, 2009                                             Business Transformation Agency                                                        Page 203 of 742
                                               Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_17   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ           FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must
                         distribute query results or notifications
                         of online query result availability to pre-
                         defined individuals or groups.


Financial_Reporting_18   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ           FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must deliver
                         run-time controls to prevent "run-away"
                         queries and to restrict very large data
                         download requests.


Financial_Reporting_19   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ           FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must deliver
                         the capability to display graphical
                         output on the desktop with dynamic
                         report reformatting.


Financial_Reporting_2    To support the Reconciliation and     OFFM-NO-0106,FBC        FFMIA        Mandatory        FV        Capture Financial Transaction Report
                         Reporting process, the Core financial
                         system must provide automated
                         functionality to Generate the FMS 224
                         Report. Parameter is the accounting
                         period. Result is the Financial
                         Management Service (FMS) 224,
                         Statement of Transactions, for non-
                         Governmentwide Accounting (GWA)
                         reporting Agency Location Code
                         (ALC's). Generate the report in both
                         hard copy and electronic formats
                         required by the Department of the
                         Treasury.


Financial_Reporting_20   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ           FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must deliver
                         the capability to download selected
                         query data. Reformat downloaded
                         query information for direct access by
                         common desktop applications (e.g.,
                         spreadsheet, American Standard
                         Code for Information Interchange
                         (ASCII) text, "," delimited).



    July 29, 2009                                           Business Transformation Agency                                                  Page 204 of 742
                                              Defense Financial Management Improvement Guidance

            Rule Name            Rule Description                Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_21   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ         FFMIA        Mandatory        FV        Perform Financial Reporting
                         the Core financial system must deliver
                         the following ad hoc query interface
                         features:
                         • Graphical display of data sources

                         • The ability to "point and click" on
                         selectable table, data, and link objects
                         for inclusion in a custom query, and
                         • An active data dictionary to provide
                         users with object definitions




    July 29, 2009                                         Business Transformation Agency                                                  Page 205 of 742
                                                Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_22   To support the Financial Reporting      OFFM-NO-0106,GLG       FFMIA        Mandatory        FV        Capture Financial Transaction Report
                         process, the Core financial system
                         must provide automated functionality
                         to generate a transaction register
                         report. Parameters are: accounting
                         period, transaction date range, or
                         system date range. Result is a report
                         displaying the following data elements
                         for each transaction posted during the
                         accounting period or date range
                         specified:
                         • Fiscal year

                         • TAS

                         • Internal fund code

                         • Document number

                         • Transaction number

                         • Transaction date

                         • System date

                         • System time

                         • Entry user ID

                         • Debit account number(s)

                         • Debit amount(s)

                         • Credit account number(s)

                         • Credit amount(s)

                         • Object class

                         • United States Standard General
                         Ledger (USSGL) attribute values.
                         Provide an option to group
                         transactions at the TAS, internal fund,
                         or organization level. Transactions
                         which occur from a single posting
                         event must be grouped together. The
                         report must include headings for each
                         data element displayed. The report
                         must include all transactions in all
                         funds that occurred within the
                         accounting period specified.




    July 29, 2009                                            Business Transformation Agency                                                  Page 206 of 742
                                                  Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_23   To support the Reconciliation and      OFFM-NO-0106,FBC           FFMIA         Mandatory        FV        Capture Financial Transaction Report
                         Reporting process, the Core financial
                         system must provide automated
                         functionality to generate the FMS
                         Partial 224 Report. Parameters are the
                         ALC Business Activity, GWA Reporter
                         Category, and accounting period.
                         Result is the FMS Partial 224 for
                         transactions associated with the ALC's
                         Business Activity (Intra-governmental
                         Payments and Collections (IPAC),
                         CA$HLINK II, Treasury Disbursing
                         Office (TDO) Payments) and not
                         reported through the GWA system,
                         and Reclassification transactions.
                         Generate the report in both hard copy
                         and electronic formats required by the
                         Department of Treasury.




Financial_Reporting_24   To support the Reconciliation and       OFFM-NO-0106,FBC          FFMIA         Mandatory        FV        Capture Financial Transaction Report
                         Reporting process, the Core financial
                         system must provide automated
                         functionality to generate the
                         SF1219/1220 statements. Parameter
                         is accounting period. Result is SF
                         1219/1220, Statement of
                         Accountability/Transactions in both
                         hard copy and electronic formats
                         required by the Department of
                         Treasury.

Financial_Reporting_25   To meet Ad Hoc Query requirements, OFFM-NO-0106,TLJ               FFMIA         Mandatory        FV        Request, Collect, and Analyze
                         the Core financial system must deliver                                                                     Narrative and or Footnote Information
                         capability to access current year and
                         historical financial data.




    July 29, 2009                                                Business Transformation Agency                                                  Page 207 of 742
                                                 Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_26   To add value to the Ad Hoc Query         OFFM-NO-0106,TLJ        FFMIA        Value Added      FV        Perform Financial Reporting
                         functionality, the Core financial system
                         should deliver a "dashboard" reporting
                         capability that can be used to
                         continuously display agency-defined
                         performance metrics on a manager's
                         desktop (e.g., a graphical view of the
                         agency's budget status).



Financial_Reporting_27   To support the Reconciliation and       OFFM-NO-0106,FBC         FFMIA        Mandatory        FV        Capture Financial Transaction Report
                         Reporting process, the Core financial
                         system must provide automated
                         functionality to generate the Partial
                         224 Transaction Detail Report.
                         Parameter is the accounting period.
                         Result is a report listing the detailed
                         transactions supporting each TAS total
                         reported in each section of the Partial
                         224. Detailed transactions must
                         include:
                         • ALC

                         • TAS

                         • Transaction amount

                         • Confirmation date

                         • Transaction document number or
                         Treasury document number.
                         Separate report totals for
                         disbursement and receipt activity by
                         ALC and TAS must be provided.




    July 29, 2009                                             Business Transformation Agency                                                   Page 208 of 742
                                                    Defense Financial Management Improvement Guidance

            Rule Name               Rule Description                      Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_28   To support the Reconciliation and        OFFM-NO-0106,FBC              FFMIA        Mandatory        FV        Capture Financial Transaction Report
                         Reporting process, the Core financial
                         system must provide automated
                         functionality to generate a Partial 224
                         Exception Report. Parameter is
                         accounting period. Result is a list of
                         the FBWT transactions that were
                         posted to an ALC, but are ineligible for
                         inclusion on the P224 based on the
                         ALC's business activity. Transactions
                         must include:
                         • ALC 

                         • TAS 

                         • Transaction amount 

                         • Confirmation date 

                         • Document number.



Financial_Reporting_29   To support the Reconciliation and          OFFM-NO-0106,FBC            FFMIA        Mandatory        FV        Capture Financial Transaction Report
                         Reporting process, the Core financial
                         system must provide automated
                         functionality to generate the Cash
                         Forecasting Report. Result is a report
                         with payment and deposit amounts at
                         a detail suitable for reporting large
                         dollar notifications as described in I
                         Treasury Financial Manual (TFM) -6-
                         8500, Cash Forecasting
                         Requirements.


Financial_Reporting_3    To support the Financial Reporting         DoDFMRVol6A,Ch1,Sub010202   DFMIR        Mandatory        FV        Create Draft Period End or On
                         process, the Core financial system                                                                             Demand Financial Statement
                         must provide automated functionality
                         to generate Financial reports which
                         result from an accounting and
                         budgeting system that is an integral
                         part of its total financial management
                         system and one that contains
                         sufficient discipline, internal controls
                         and reliable data. In addition,
                         interfaces with both logistic and
                         acquisition systems should be
                         provided



    July 29, 2009                                                   Business Transformation Agency                                                   Page 209 of 742
                                                Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_30   Agencies shall provide information to DoDFMRVol6A,Ch1,Sub010205   FFMIA        Mandatory        FV        Perform Financial Reporting
                         address the restatement of financial     OMBCIRA-136,SecII.4.10
                         statements due to material errors in a
                         separate note entitled "Restatements."
                         When DoD Components discover
                         errors or identify changes required to
                         be made to information previously
                         reported, an amended report shall be
                         prepared that clearly identifies the
                         material error corrected. The
                         statement shall be clearly identified as
                         an "Amended Report.


Financial_Reporting_31   To support the Financial Reporting       OFFM-NO-0106,GLG         FFMIA        Mandatory        FV        Capture Financial Transaction Report
                         process, the Core financial system
                         must provide automated functionality
                         to generate all standard reports as of
                         any accounting period. Amounts
                         reported must reflect the cumulative
                         amount of all transactions posted to
                         the general ledger up through the
                         accounting period specified for running
                         the report. If reporting for the current
                         period, amounts must be cumulative
                         up through the current date.




    July 29, 2009                                             Business Transformation Agency                                                    Page 210 of 742
                                                Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_32   To support the Financial Reporting       OFFM-NO-0106,GLG       FFMIA        Mandatory        FV        Perform Financial Reporting
                         process, the Core financial system
                         must provide automated functionality
                         to ensure consistency between the
                         data sources used to generate internal
                         and external financial reports for the
                         same accounting period. The following
                         relationships must be maintained:
                         • The beginning and ending balances
                         and total debit and credit activity
                         reported on the Standard Trial Balance
                         must equal the beginning and ending
                         balances and total debit and credit
                         activity reported on the FACTS I and
                         FACTS II trial balances.
                         • The debit and credit activity reported
                         on the Transaction Register must
                         equal the debit and credit activity
                         reported on all of the trial balances.
                         • The system-generated FACTS I
                         transfer file must agree with the
                         system-generated Balance Sheet,
                         Statement of Net Cost, and Statement
                         of Changes in Net Position
                         • see 02.01.192-2 for balance of
                         language.
                         • The system-generated FACTS II
                         transfer file must agree with the
                         system-generated Statement of
                         Budgetary Resources and the SF-133.




    July 29, 2009                                             Business Transformation Agency                                                  Page 211 of 742
                                                Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_33   To support the Financial Reporting    OFFM-NO-0106,GLG        FFMIA        Mandatory        FV        Perform Financial Reporting
                         process, the Core financial system
                         must provide automated functionality
                         to validate FACTS I and FACTS II data
                         prior to submission of the FACTS I
                         and FACTS II ATBs and the
                         Governmentwide Financial Report
                         System (GFRS) report to Treasury's
                         FMS. Provide the option to run
                         validation edits on demand.


Financial_Reporting_34   To support the Financial Reporting     OFFM-NO-0106,GLG       FFMIA        Mandatory        FV        Perform Financial Reporting
                         process, the Core financial system
                         must provide automated functionality
                         to customize agency financial
                         statement formats by adding or
                         deleting line items, changing the name
                         of line items, inserting additional
                         subtotals, or modifying account
                         crosswalks through table updates or
                         report writing capability.


Financial_Reporting_35   To support the Financial Reporting     OFFM-NO-0106,GLG       FFMIA        Mandatory        FV        Assemble Certified Financial
                         process, the Core financial system                                                                    Statement Package
                         must provide automated functionality
                         to generate reclassified consolidated
                         agency financial statements for input
                         to GFRS in accordance with current
                         TFM Agency Reporting Requirements
                         for the Financial Report of the United
                         States Government and the USSGL
                         Crosswalks to the Closing Package.




    July 29, 2009                                           Business Transformation Agency                                                  Page 212 of 742
                                                 Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_36   To support the Financial Reporting      OFFM-NO-0106,GLG         FFMIA        Mandatory        FV        Assemble Certified Financial
                         process, the Core financial system                                                                       Statement Package
                         must provide automated functionality
                         to generate consolidated financial
                         statements on-line. Drill-down from the
                         consolidated amounts to the GL
                         accounts and balances that make up
                         the amounts, from the General Ledger
                         (GL) account balances to the
                         individual balances by TAS, and to
                         detailed GL transactions.


Financial_Reporting_37   To add value to the Ad Hoc Query         OFFM-NO-0106,TLJ        FFMIA        Value Added      FV        Perform Financial Reporting
                         functionality, the Core financial system
                         should deliver the capability to
                         optimize queries.
Financial_Reporting_38   To support the Financial Reporting    DoDFMRVol6B,Ch1,Sub0105    DFMIR        Mandatory        FV        Assemble Certified Financial
                         process, the Core financial system                                                                       Statement Package
                         must provide automated functionality
                         to generate annual audited financial
                         statements for the period ending on
                         September 30 of each fiscal year; and
                         the quarterly unaudited financial
                         statements for periods ending
                         December 31, March 31, and June 30
                         of each fiscal year.




    July 29, 2009                                             Business Transformation Agency                                                   Page 213 of 742
                                                Defense Financial Management Improvement Guidance

            Rule Name             Rule Description                  Primary Reference         Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_39   To support the Financial Reporting     DoDFMRVol6B,Ch1,Sub010701    DFMIR        Mandatory        FV        Assemble Certified Financial
                         process, the annual audited financial                                                                       Statement Package
                         statements shall be comprised of nine
                         major sections. The nine major
                         sections and the sequence of their
                         presentation are as follows: A. Agency
                         Head Message; B. Management's
                         Discussion and Analysis (MD&A); C.
                         Principal Statements; D. Notes to the
                         Principal Statements; E. Supporting
                         Consolidating/Combining Statements;
                         F. Required Supplementary
                         Stewardship Information; G. Required
                         Supplementary Information; H. Other
                         Accompanying Information; I. Audit
                         Opinion.




Financial_Reporting_4    To support the Financial Reporting      DoDFMRVol6A,Ch1,Sub010203   DFMIR        Mandatory        FV        Capture Financial Transaction Report
                         process, the Core financial system
                         must provide automated functionality
                         to generate financial reports and
                         underlying financial system which shall
                         report on the total operations of the
                         reporting entity and shall comply with
                         the policies and procedures and
                         related requirements as implemented
                         in this regulation.




    July 29, 2009                                            Business Transformation Agency                                                       Page 214 of 742
                                                   Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                       Primary Reference       Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_40   Unless otherwise specified in the          DoDFMRVol13,Ch1,Sub0110      FFMIA        Mandatory        FV        Request, Collect, and Analyze
                         transition instructions section of a new   DoDFMRVol6B,Ch10,Sub100301                                           Narrative and or Footnote Information
                         FASAB standard, for all changes in         OMBCIRA-136,SecII.4.5
                         accounting principles that would have      OMBCIRA-136,SecII.4.5
                         resulted in a change to prior period       OMBCIRA-136,SecII.4.5
                         financial statements: (a) The              OMBCIRA-136,SecII.4.5
                         cumulative effect of the change on         OMBCIRA-136,SecII.4.5
                         prior periods should be reported as a      SFFAS21,12
                         "change in accounting principle." The
                         adjustment should be made to the
                         beginning balance of cumulative
                         results of operations in the statement
                         of changes in net position for the
                         period that the change is made. (b)
                         Prior period financial statements
                         presented for comparative purposes
                         should be presented as previously
                         reported; and (c) The nature of the
                         changes in accounting principle and its
                         effect on relevant balances should be
                         disclosed in the current period.
                         Financial statements of subsequent
                         periods need not repeat the
                         disclosure. (A change in accounting
                         principle is a change from one
                         generally accepted accounting
                         principle to another one that can be
                         justified as preferable. For the
                         purposes of this standard, changes in
                         accounting principles also include
                         those occasioned by the adoption of
                         new federal financial accounting
                         standards).




    July 29, 2009                                                   Business Transformation Agency                                                    Page 215 of 742
                                                   Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                       Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_41   When errors are discovered after the       DoDFMRVol13,Ch1,Sub0111   FFMIA         Mandatory        FV        Request General Ledger Closing Pro
                         issuance of financial statements, and if   OMBCIRA-136,SecII.4.5                                              Forma Entries
                         the financial statements would be          OMBCIRA-136,SecII.4.5                                              Request General Ledger Correcting
                         materially misstated absent correction     OMBCIRA-136,SecII.4.5                                              Pro Forma Entries
                         of the errors, corrections should be       SFFAS21,10
                         made as follows: (a) If only the current
                         period statements are presented, then
                         the cumulative effect of correcting the
                         error should be reported as a prior
                         period adjustment. The adjustment
                         should be made to the beginning
                         balance of cumulative results of
                         operations, in the statement of
                         changes in net position. (b) If
                         comparative financial statements are
                         presented, then the error should be
                         corrected in the earliest affected
                         period presented by correcting any
                         individual amounts on the financial
                         statements. If the earliest period
                         presented is not the period in which
                         the error occurred and the cumulative
                         effect is attributable to prior periods,
                         then the cumulative effect should be
                         reported as a prior period adjustment.
                         The adjustment should be made to the
                         beginning balance of cumulative
                         results of operations, in the statement
                         of changes in net position for the
                         earliest period presented. (c) The
                         nature of an error in previously issued
                         financial statements and the effect of
                         its correction on relevant balances
                         should be disclosed. Financial
                         statements of subsequent periods
                         need not repeat the disclosures. Prior




    July 29, 2009                                                   Business Transformation Agency                                                 Page 216 of 742
                                                  Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                    Primary Reference       Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Financial_Reporting_42   All agencies must provide Financial     TFMVol1,Pt2,Ch4700,Sec4701   FFMIA        Mandatory        FV        Perform Financial Reporting
                         Management Service (FMS) with                                                                                Request General Ledger Closing Pro
                         required fiscal year-end data that will                                                                      Forma Entries
                         be used to prepare the Financial
                         Report of the United States
                         Government (FR). All verifying
                         agencies (see Figure 1) must submit
                         their financial data using the Closing
                         Package process via Government
                         wide Financial Report System (GFRS)
                         and Federal Agencies' Centralized
                         Trial-Balance System (FACTS I). All
                         non-verifying agencies must submit
                         FACTS I Adjusted Trial Balance (ATB)
                         data and must complete GFRS Notes
                         and Other FR Data.



Financial_Reporting_43   The system shall report both entity      SFFAS1,25                   FFMIA        Mandatory        FV        Perform Financial Reporting
                         assets (those assets which the
                         reporting entity has authority to use in
                         its operations) and "non-entity assets"
                         (those assets that are held by an entity
                         but are not available to the entity). An
                         example of non-entity assets are
                         customs duty receivables that the
                         Customs Service collects for the U.S.
                         government but has no authority to
                         spend. A similar example is federal
                         income tax receivable that the Internal
                         Revenue Service collects for the U.S.
                         government.




    July 29, 2009                                              Business Transformation Agency                                                      Page 217 of 742
                                                   Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_44   The system shall recognize cash,        SFFAS1,27                  FFMIA         Mandatory        FV        Manage Financial Assets and
                         including imprest funds as an asset.                                                                        Liabilities
                         Cash consists of: (a) coins, paper
                         currency and readily negotiable
                         instruments, such as money orders,
                         checks, and bank drafts on hand or in
                         transit for deposit, (b) amounts on
                         demand deposit with banks or other
                         financial institutions and (c) foreign
                         currencies, which, for accounting
                         purposes, shall be translated into U.S.
                         dollars at the exchange rate on the
                         financial statement date.


Financial_Reporting_45   The system shall recognize that cash     SFFAS1,30                 FFMIA         Mandatory        FV        Perform Financial Reporting
                         may be restricted. Restrictions are                                                                         Post to General Ledger
                         usually imposed on cash deposits by
                         law, regulation, or agreement. Non-
                         entity cash is always restricted cash.
                         Entity cash may be restricted for
                         specific purposes. Such cash may be
                         in escrow or other special accounts.
                         Financial reports shall disclose the
                         reasons and nature of restrictions.



Financial_Reporting_46   An entity (and its accounting system) SFFAS1,67                    FFMIA         Mandatory        FV        Manage Investments
                         shall account for and report                                                                                Post to General Ledger
                         investments in securities issued by the                                                                     Request, Collect, and Analyze
                         U.S. Treasury or other federal entities                                                                     Narrative and or Footnote Information
                         separately from investments in
                         securities issued by nonfederal
                         entities.




    July 29, 2009                                                 Business Transformation Agency                                                  Page 218 of 742
                                                   Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                     Primary Reference      Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_47   For investments in market-based and SFFAS1,72                        FFMIA        Mandatory        FV        Manage Investments
                         marketable Treasury securities, the                                                                          Request, Collect, and Analyze
                         market value of the investments shall                                                                        Narrative and or Footnote Information
                         be disclosed. For purposes of
                         determining a market value,
                         investments shall be grouped by type
                         of security, such as marketable or
                         market-based Treasury securities. The
                         market value of investments in a group
                         is calculated by the market price of
                         securities of that group at the financial
                         reporting date multiplied by the
                         number of notes or bonds held at the
                         financial reporting date.


Financial_Reporting_5    DoD Components are responsible for       DoDFMRVol6A,Ch1,Sub010204   DFMIR        Mandatory        FV        Request, Collect, and Analyze
                         assuring that all appropriate                                                                                Narrative and or Footnote Information
                         disclosures considered necessary for
                         fair presentation of their financial
                         position are included in the report.


Financial_Reporting_6    Comparative financial statements are     OMBCIRA-136,SecII.4.1       FFMIA        Mandatory        FV        Request, Collect, and Analyze
                         required. Information for the current                                                                        Narrative and or Footnote Information
                         and preceding years should be
                         presented regardless of the type of
                         audit opinion rendered by the auditor.
                         Footnotes should contain the
                         information necessary for full
                         disclosure of both years.




    July 29, 2009                                                 Business Transformation Agency                                                   Page 219 of 742
                                                     Defense Financial Management Improvement Guidance

              Rule Name              Rule Description                   Primary Reference       Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Financial_Reporting_7     The DoD components/reporting             DoDFMRVol6B,Ch2,Sub020503   DFMIR        Mandatory        FV        Analyze Draft Period End or On
                          entities shall prepare quarterly interim DoDFMRVol6B,Ch2,Sub020508                                           Demand Financial Statement
                          and fiscal year-end comparative
                          statements. Also, the Balance Sheet,
                          Statement of Net Cost and the
                          Statement of Changes in Net Position
                          principal statements shall be prepared
                          as consolidated and consolidating
                          statements, net of intra-entity
                          transactions. The Statement of
                          Budgetary Resources and Statement
                          of Custodial Activity shall be prepared
                          as combined and combining
                          statements.


Financial_Reporting_8     The system must allow the               DoDFMRVol6B,Ch10,Sub100101   DFMIR        Mandatory        FV        Request, Collect, and Analyze
                          Department of Defense (DoD)                                                                                  Narrative and or Footnote Information
                          Components and reporting entities to
                          prepare quarterly and fiscal year end
                          comparative financial statements and
                          notes.
Financial_Reporting_9     To support the Financial Reporting        OFFM-NO-0106,GLG           FFMIA        Mandatory        FV        Perform Financial Reporting
                          process, the Core financial system
                          must provide automated functionality
                          to export bulk transfer files for Federal
                          Agencies' Centralized Trial-Balance
                          System (FACTS) I and FACTS II
                          Adjusted Trial Balances (ATBs) to the
                          Department of Treasury's FMS


Forfeiture_Activities_1   The system must provide a unique        JFMIPSR-99-4                 FFMIA        Mandatory        MV        Update Asset Record
                          identifier for the property that will
                          facilitate tracking through seizure,
                          holding, and disposition.
Forfeiture_Activities_2   The system must record in a timely      JFMIPSR-99-4                 FFMIA        Mandatory        MV        Update Asset Record
                          manner, the date of seizure, the type
                          of property, the location where it was
                          seized, the storage location, owner(s)
                          if known, and any other entity involved
                          in the seizure.




    July 29, 2009                                                 Business Transformation Agency                                                    Page 220 of 742
                                                     Defense Financial Management Improvement Guidance

              Rule Name              Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Forfeiture_Activities_3   The system must timely and              JFMIPSR-99-4                FFMIA         Mandatory        FV        Post to General Ledger
                          accurately record the original assigned                                                            MV        Update Asset Record
                          value and any subsequent updates to
                          the valuation.

Forfeiture_Activities_4   The system must timely record any         JFMIPSR-99-4              FFMIA         Mandatory        FV        Manage Liabilities
                          mortgage and claim liabilities against                                                             MV        Post to General Ledger
                          each asset seized for forfeiture.                                                                            Update Asset Record

Forfeiture_Activities_5   The system must be capable of             JFMIPSR-99-4              FFMIA         Mandatory        MV        Update Asset Record
                          obtaining the current information on
                          processing status of any abandoned
                          property or forfeited assets in the
                          database by use of any automated
                          query mechanism.
Forfeiture_Activities_6   The system must maintain information JFMIPSR-99-4                   FFMIA         Mandatory        MV        Update Asset Record
                          necessary to enable routine
                          verification of the legal authority for the
                          seizure. This information must include
                          the ability to verify that the agency
                          seizure or forfeiture criteria have been
                          observed.


Forfeiture_Activities_7   The system must maintain information JFMIPSR-99-4                   FFMIA         Mandatory        MV        Update Asset Record
                          necessary for prompt payment of
                          properly authorized and billed
                          services, and interact with the Core
                          Financial System to accomplish this
                          task.
Forfeiture_Activities_8   The system must support the            JFMIPSR-99-4                 FFMIA         Mandatory        FV        Post to General Ledger
                          recording and capture of all                                                                       MV        Update Asset Record
                          appropriate costs of the forfeiture
                          process on a basis consistent with the
                          type of property.
Fund_Analysis_1           To support the Funds Control/Funds        OFFM-NO-0106,FME          FFMIA         Mandatory        FV        Update Chart of Accounts and SFIS
                          Availability Editing activity, the Core                                                                      Attribute and Pro Forma Entries and
                          financial system must provide                                                                                Calendar
                          automated functionality to capture
                          accounting classification information
                          on commitments, obligations,
                          advances, and expenditures at the
                          accounting line item level.



    July 29, 2009                                                   Business Transformation Agency                                                  Page 221 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                 Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_10       To add value to the Budget Planning OFFM-NO-0106,FMA            FFMIA         Value Added      CSE       Monitor and Improve Process
                       process, the Core financial system
                       should provide automated functionality
                       to maintain current and multiple
                       historical versions of plans.


Fund_Analysis_11       To add value to the Funds Distribution OFFM-NO-0106,FMD         FFMIA         Value Added      FV        Execute Apportionment and Allocate
                       process, the Core financial system                                                                       Funds
                       should provide automated functionality                                                                   Manage Execution Fund Account
                       to update allotments, sub-allotments,
                       allocations and legal and
                       administrative limitations based on
                       changes to operating plans.


Fund_Analysis_12       To add value to the Budget Planning OFFM-NO-0106,FMA            FFMIA         Value Added      CSE       Monitor and Improve Process
                       process, the Core financial system
                       should provide automated functionality
                       to maintain financial operating and
                       spending plans for future periods (i.e.,
                       future fiscal years).


Fund_Analysis_13       To add value to the Budget Planning OFFM-NO-0106,FMA            FFMIA         Value Added      CSE       Monitor and Improve Process
                       process, the Core financial system
                       should provide automated functionality
                       to activate future period plans based
                       on a specified plan start date or on-
                       demand.


Fund_Analysis_14       To add value to the Budget            OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Managerial Accounting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to classify
                       budget projections using accounting
                       classification elements (e.g.,
                       Apportionment categories, Authority
                       type, etc.).
Fund_Analysis_15       To add value to the Budget             OFFM-NO-0106,FMB         FFMIA         Value Added      FV        Perform Managerial Accounting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to calculate
                       prior year budgets, actual spending
                       amounts and variances at the line item
                       level.

    July 29, 2009                                            Business Transformation Agency                                                  Page 222 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                  Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_16       To add value to the Budget            OFFM-NO-0106,FMB           FFMIA         Value Added      FV        Perform Managerial Accounting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       projected future period obligations,
                       income, and expenditures at any level
                       of the organizational structure based
                       on prior year actual activity using
                       agency-defined projection rates.


Fund_Analysis_17       To add value to the Budget             OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Managerial Accounting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to define
                       projection rates (e.g., 90%, 100%,
                       110%) by budget object class for use
                       in budget formulation
Fund_Analysis_18       To add value to the Budget             OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Managerial Accounting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       payroll forecasts (i.e., anticipated
                       compensation and benefits) at the
                       object class and individual employee
                       level.
Fund_Analysis_19       To add value to the Budget             OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Managerial Accounting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       overhead projections using agency
                       defined overhead rates.
Fund_Analysis_2        To support the Funds Control/Funds      OFFM-NO-0106,FME         FFMIA         Mandatory        FV        Manage Execution Fund Account
                       Availability Editing activity, the Core
                       financial system must provide
                       automated functionality to monitor the
                       use of funds against financial
                       operating and spending plans.




    July 29, 2009                                             Business Transformation Agency                                                 Page 223 of 742
                                                 Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_20       To add value to the Budget              OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to import
                       budget formulation data submitted in
                       Excel or ASCII text delimited format.


Fund_Analysis_21       To add value to the Budget              OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to import
                       budget submission guidance, other
                       narrative text and briefing material
                       written using common PC desktop
                       applications (e.g., MS Word).
Fund_Analysis_22       To add value to the Budget              OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to distribute
                       budget submission guidance
                       electronically.
Fund_Analysis_23       To add value to the Budget             OFFM-NO-0106,FMB           FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       budget information for multiple budget
                       cycles (e.g. monthly, quarterly, semi-
                       annual, and yearly).


Fund_Analysis_24       To add value to the Budget              OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to associate
                       budget formulation line items to the
                       agency's stated goals and objectives
                       required by GPRA.
Fund_Analysis_25       To add value to the Budget Planning OFFM-NO-0106,FMA              FFMIA         Value Added      FV        Perform Managerial Accounting
                       process, the Core financial system
                       should provide automated functionality
                       to compare planned spending to actual
                       spending




    July 29, 2009                                              Business Transformation Agency                                                 Page 224 of 742
                                                 Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                    Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_26       To add value to the Budget          OFFM-NO-0106,FMB               FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to import
                       budget formulation data (e.g.,
                       Presidential/OMB pass backs,
                       congressional markup documents, and
                       internal agency decisions).
Fund_Analysis_27       To add value to the Budget               OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       budget formulation information for all
                       categories on which legally binding
                       budgetary decisions are made (e.g.,
                       appropriation limitations).


Fund_Analysis_28       To add value to the Budget             OFFM-NO-0106,FMB            FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       budget formulation information for
                       administrative purposes as in the
                       nature of policy guidance and decision
                       making (e.g., Presidential/OMB pass
                       backs, congressional markup
                       documents, or internal agency
                       decisions).

Fund_Analysis_29       To add value to the Budget              OFFM-NO-0106,FMB           FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to export prior
                       year budgets, actual spending and
                       variances at the line item level in an
                       excel or ASCII text delimited file
                       format.




    July 29, 2009                                               Business Transformation Agency                                                 Page 225 of 742
                                                Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_3        To support the Funds Status process, OFFM-NO-0106,FMF             FFMIA         Mandatory        FV        Manage Execution Fund Account
                       the Core financial system must provide                                                                     Post to General Ledger
                       automated functionality to validate that
                       funds availability balances used for
                       funds control and funds status
                       reporting agree with the general
                       ledger.


Fund_Analysis_30       To add value to the Budget              OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to calculate
                       budget amounts for all, selected
                       groups, or individual budget line items
                       based on agency-defined projection
                       rates.
Fund_Analysis_31       To add value to the Budget              OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Budgeting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       multiple budgets based on alternative
                       agency-specified accounting
                       structures, funding levels, and
                       spending criteria.
Fund_Analysis_32       To add value to the Budget              OFFM-NO-0106,FMB          FFMIA         Value Added      FV        Perform Managerial Accounting
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to generate
                       modified payroll forecasts.
Fund_Analysis_33       To add value to the Budget             OFFM-NO-0106,FMB           FFMIA         Value Added      FV        Manage Execution Fund Account
                       Preparation process, the Core
                       financial system should provide
                       automated functionality to capture SF-
                       132 Schedule data by TAFS.




    July 29, 2009                                              Business Transformation Agency                                                 Page 226 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Fund_Analysis_34       To support the Funds Status process, OFFM-NO-0106,FMF        FFMIA        Mandatory        FV        Manage Execution Fund Account
                       the Core financial system must provide
                       automated functionality to generate
                       the Status of Funds Report. Parameter
                       is the accounting period. Result is a
                       report providing the following
                       information for each allotment
                       recorded by the agency:
                       • Accounting classification elements 

                       • Total Allotment 

                       • Commitments 

                       • Obligations 

                       • Expenditures 

                       • Available Balance 

                       Available balance must equal the GL
                       balance in the 4610 or 4620 account.
                       Amounts should be cumulative from
                       the beginning of the fiscal year through
                       the accounting period specified. If
                       reporting for the current period,
                       amounts must be cumulative up
                       through the current date.




Fund_Analysis_35       To support the Funds Status process, OFFM-NO-0106,FMF        FFMIA        Mandatory        FV        Manage Execution Fund Account
                       the Core financial system must provide                                                               Perform Budgeting
                       automated functionality to query
                       budget information. Parameters
                       include accounting classifications.
                       Result is budgetary authority amounts
                       (all types, as applicable to the fund
                       type), spending activity (e.g.,
                       obligations, expenditures), and the
                       available balance. Displayed amounts
                       should be consistent with amounts
                       derived using the U.S. SGL crosswalk
                       to the SF-133.




    July 29, 2009                                        Business Transformation Agency                                                 Page 227 of 742
                                             Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Fund_Analysis_36       To support the Funds Status process, OFFM-NO-0106,FMF        FFMIA        Mandatory        FV        Manage Execution Fund Account
                       the Core financial system must provide
                       automated functionality to generate a
                       contract/BPA activity report.
                       Parameters include contract/BPA
                       number accounting period and period
                       covered (monthly, quarterly, fiscal year-
                       to-date, or inception-to-date). Result is
                       list of accounting activity (obligations,
                       expenditures, disbursements, etc.)
                       under the contract/BPA, with vendor
                       information, period of performance,
                       document numbers, delivery
                       order/task order numbers, accounting
                       classification information, transaction
                       dates and amounts. Sorting options
                       include transaction date, document
                       type and accounting classification.




    July 29, 2009                                        Business Transformation Agency                                                 Page 228 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_37       To support the Funds Status process, OFFM-NO-0106,FMF         FFMIA        Mandatory        FV        Manage Execution Fund Account
                       the Core financial system must provide
                       automated functionality to query status
                       of funds. Parameters include
                       accounting period, and allotment
                       accounting classification. Result is a
                       display providing the following
                       information:
                       • Accounting classification elements 

                       • Total Allotment

                       • Commitments

                       • Obligations

                       • Expenditures

                       • Available Balance (available balance
                       must equal the balance in the 4610 or
                       4620 account).
                       Drill down from the commitments line,
                       obligations line, and the expenditures
                       line to the detailed transactions,
                       documents, and document detail that
                       support these lines.




Fund_Analysis_38       To add value to the Funds Status       OFFM-NO-0106,FMF       FFMIA        Value Added      FV        Manage Execution Fund Account
                       process, the Core financial system
                       should provide automated functionality
                       to notify the agency when funds
                       availability by TAFS or internal fund
                       code reaches a pre-defined percent of
                       the original total funding amount.


Fund_Analysis_39       To add value to the Funds Status       OFFM-NO-0106,FMF       FFMIA        Value Added      FV        Perform Budgeting
                       process, the Core financial system
                       should provide automated functionality
                       to generate Excel files that are
                       consistent with the presentation of
                       budget schedules published in OMB
                       Circular A-11.




    July 29, 2009                                         Business Transformation Agency                                                 Page 229 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Fund_Analysis_4        To support the Funds Control/Funds      OFFM-NO-0106,FME       FFMIA        Mandatory        CSE       Monitor Contract or Order
                       Availability Editing activity, the Core                                                                Performance
                       financial system must provide
                       automated functionality to maintain a
                       history of changes made to
                       commitment, obligation, advance, and
                       expenditure documents.




    July 29, 2009                                          Business Transformation Agency                                                  Page 230 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Fund_Analysis_40       To support the obligation process, the JFMIPSR-02-02,Pg26,27    FFMIA        Mandatory        FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system must access the
                       following information:
                       - FY
                       - appropriation/Treasury fund
                       symbol;
                       - organization code;
                       - cost center;
                       - object classification;
                       - project code;
                       - program code;
                       - obligation amount;
                       - PR number;
                       - funded through date (for those
                       contracts that are incrementally
                       funded)
                       - contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); PO number (including
                       modification number, if any); blanket
                       purchase agreement (BPA) number
                       and all associated BPA call numbers
                       (including modification number, if
                       any);
                       - contractor name;
                       - contractor TIN;
                       - Data Universal Numbering System
                       (DUNS) identification;
                       - interagency agreement number;
                       - trading partner;
                       - award (transaction) date;
                       - effective date;
                       - action code;
                       - product or service description;
                       - amounts increased and/or amounts
                       decreased;
                       - subject to funds availability indicator;




    July 29, 2009                                          Business Transformation Agency                                                  Page 231 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_41       To support the obligation process, the JFMIPSR-02-02,Pg27       FFMIA        Mandatory        FV        Manage Financial Management Policy
                       agency's single integrated financial                                                                    Manage General Ledger
                       management system must use
                       account definitions consistent with the
                       account definitions in the U.S.SGL.
                       Any expansion to the chart of accounts
                       must roll up to the accounts as defined
                       in the U.S.SGL. However, a pseudo
                       code can be used instead of the exact
                       U.S.SGL account numbers, providing
                       the account descriptions and posting
                       rules are the same as those used in
                       the U.S.SGL for relevant transactions.




Fund_Analysis_42       To support the obligation process, the JFMIPSR-02-02,Pg27       FFMIA        Mandatory        FV        Update Chart of Accounts and SFIS
                       agency's single integrated financial                                                                    Attribute and Pro Forma Entries and
                       management system must provide the                                                                      Calendar
                       capability to create additional
                       subaccounts to the general ledger for
                       agency specific tracking and control.
                       These sub accounts will summarize to
                       the U.S.SGL accounts.


Fund_Analysis_43       To support the obligation process, the JFMIPSR-02-02,Pg27       FFMIA        Mandatory        CSE       Award Contract or Acknowledge Order
                       agency's single integrated financial                                                          FV        or Issue Modification
                       management system must access the                                                                       Review Funding Request
                       full estimated cost of the interagency
                       agreement (both direct and indirect
                       costs need to be provided for
                       evaluation).
Fund_Analysis_44       To support the obligation process, the JFMIPSR-02-02,Pg27       FFMIA        Mandatory        FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system must provide
                       transaction details to support account
                       balances.




    July 29, 2009                                          Business Transformation Agency                                                   Page 232 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Fund_Analysis_45       To support the obligation process, the JFMIPSR-02-02,Pg28       FFMIA        Mandatory        FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system must provide
                       access to a hard copy or an electronic
                       copy (where cost effective) of the
                       entire executed (signed) contract (Per
                       FAR 4.201, the entire signed contract
                       is provided to the paying office),
                       including the following data elements
                       captured at obligation and necessary
                       for payment and/or other financial
                       processes
                       - obligating document number (if
                       different from contract number);
                       - contractor name and address;
                       - contract administration office;
                       - payment office;
                       - unit of measure;
                       - unit price;
                       - extended price;
                       - quantity;
                       - variance amount or percentage
                       allowed;
                       - total amount;
                       - payment terms and conditions (e.g.,
                       discount terms, applicable payment
                       clauses, withhold indicator, withhold
                       percentage, etc.);
                       - delivery/performance schedule;
                       - estimated completion date;
                       - payment type (e.g., prompt pay, fast
                       pay, progress pay, or partial pay);
                       - names of government-designated
                       receiving, invoice-approving, and
                       acceptance officials;
                       - shipping costs; and
                       - shipping terms, e.g., FOB
                       destination.

Fund_Analysis_46       To support the obligation process, the JFMIPSR-02-02,Pg28       FFMIA        Mandatory        FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system must identify the
                       method of acquisition, e.g., purchase
                       or lease.



    July 29, 2009                                          Business Transformation Agency                                                  Page 233 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Fund_Analysis_47       To support the obligation process, the JFMIPSR-02-02,Pg29       FFMIA        Value Added      FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system should access
                       other information where applicable and
                       available
                       - performance measure code;
                       - revenue source code;
                       - additional funding indicator, including
                       increases and decreases;
                       - line item number, including access to
                       contract line item data; and
                       - ALC.




Fund_Analysis_48       To support the obligation process, the JFMIPSR-02-02,Pg29       FFMIA        Value Added      CSE       Establish Sourcing Vehicle with
                       agency's single integrated financial                                                                    Commercial Sources
                       management system should provide
                       an indicator (e.g., Y/N) as to whether
                       payments to the contractor are exempt
                       from EFT.




    July 29, 2009                                          Business Transformation Agency                                                   Page 234 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Fund_Analysis_49       To support the obligation process, the JFMIPSR-02-02,Pg29       FFMIA        Value Added      FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system should access
                       the following information related to an
                       EFT payment
                       - contract number and all associated
                       delivery order numbers or task order
                       numbers (including modification
                       number, if any); PO number (including
                       modification number, if any); BPA
                       number and all associated BPA call
                       numbers (including modification
                       number, if any); name and remittance
                       address;
                       - signature, title, and telephone
                       number of the contractor official
                       authorized to provide EFT
                       information;
                       - name, address, and nine-digit routing
                       and transit number (RTN) of the
                       contractor's financial agent;
                       - contractor's account number and
                       type of account (checking, savings, or
                       lockbox);
                       - the Fedwire Transfer System
                       telegraphic abbreviation of the
                       contractor's financial agent; and
                       - the name, address, telegraphic
                       abbreviation, and nine-digit RTN of the
                       financial institution receiving the wire
                       transfer payment, if the contractor's
                       financial agent is not connected
                       directly to the Fedwire Transfer
                       System online.




    July 29, 2009                                          Business Transformation Agency                                                  Page 235 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference         Rule Type   Rule Indicator    BEP(s)           BPM Process(es)

Fund_Analysis_5        DoD Components shall identify to        DoDFMRVol3,Ch10,Sub100201G   DFMIR        Mandatory        FV        Manage Execution Fund Account
                       closed accounts all obligations and                                                                          Post to General Ledger
                       payments charged to currently
                       available appropriations that otherwise
                       would have been properly chargeable
                       (both as to purpose and amount) to a
                       canceled appropriation.


Fund_Analysis_50       To support the obligation process, the JFMIPSR-02-02,Pg29            FFMIA        Value Added      FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system should Provide
                       the ability to cross-reference contract
                       numbers and related interagency
                       agreements.
Fund_Analysis_51       To support the obligation process, the JFMIPSR-02-02,Pg29,30         FFMIA        Value Added      FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system should access
                       lease information
                       - amount;
                       - agency option to purchase at end of
                       lease (include purchase price if
                       agency has option to purchase);
                       - life expectancy of leased property
                       when new, and remaining life when
                       leased;
                       - current retail or fair value of leased
                       property;
                       - agency option to property ownership
                       transfer at end of lease; and
                       - access to the lease agreement,
                       including terms and conditions, e.g.,
                       discount terms and lease period.




Fund_Analysis_52       To support the obligation process, the JFMIPSR-02-02,Pg30            FFMIA        Value Added      FV        Manage Execution Fund Account
                       agency's single integrated financial
                       management system should enable
                       electronic contracting, obligation of
                       funds, approvals and signatures, and
                       notification alerts for pending actions.




    July 29, 2009                                          Business Transformation Agency                                                       Page 236 of 742
                                              Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_53       To support the obligation process, the JFMIPSR-02-02,Pg30       FFMIA        Value Added      FV        Manage Execution Fund Account
                       agency's single integrated financial                                                                    Post to General Ledger
                       management system should record
                       periodic obligations
                       - appropriate periodic obligations
                       against appropriated funding and
                       contracts; and
                       - appropriate contract-specified cost
                       escalations to existing contract line
                       numbers.


Fund_Analysis_54       To support the obligation process, the JFMIPSR-02-02,Pg30       FFMIA        Value Added      CSE       Manage Supply Chain Entitlement
                       agency's single integrated financial                                                                    Receive Goods and Services
                       management system should access
                       information associated with contract
                       changes:
                       - change in product or service
                       descriptions;
                       - change in unit of measure;
                       - change in quantity;
                       - change in unit price;
                       - change in total amount;
                       - change in extended price;
                       - change to payment terms and
                       conditions;
                       - change to delivery/performance
                       schedule; and
                       - revised estimated completion date.




Fund_Analysis_55       To support the de-obligation process, JFMIPSR-02-02,Pg32        FFMIA        Mandatory        FV        Manage Execution Fund Account
                       the agency's single integrated financial
                       management system must provide the
                       capability to access all information
                       previously supplied for the original
                       obligation.




    July 29, 2009                                          Business Transformation Agency                                                  Page 237 of 742
                                               Defense Financial Management Improvement Guidance

           Rule Name            Rule Description                    Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Fund_Analysis_56       To support the de-obligation process, JFMIPSR-02-02,Pg32           FFMIA        Value Added      FV        Manage Execution Fund Account
                       the agency's single integrated financial
                       management system should provide
                       the capability to access all information
                       previously supplied for the original
                       obligation.


Fund_Analysis_6        Obligated and unobligated balances of DoDFMRVol3,Ch10,Sub100201A   DFMIR        Mandatory        FV        Manage General Ledger
                       an appropriation shall be available for
                       adjusting and liquidating obligations
                       properly chargeable to that account for
                       5 years after the time an appropriation
                       expires for incurring new obligations.



Fund_Analysis_7        To support the Funds Control/Funds      OFFM-NO-0106,FME           FFMIA        Mandatory        FV        Manage Execution Fund Account
                       Availability Editing activity, the Core
                       financial system must provide
                       automated functionality to do maintain
                       open documents to show the status of
                       commitments, obligations, advances,
                       accruals and disbursements by
                       document (commodity) line item.



Fund_Analysis_8        To add value to the Budget Planning OFFM-NO-0106,FMA               FFMIA        Value Added      FV        Perform Managerial Accounting
                       process, the Core financial system
                       should provide automated functionality
                       to generate plan results based on
                       multiple measures including fixed
                       dollar amounts, unit costs, cost
                       allocations, labor hours or full-time
                       equivalents (FTEs).


Fund_Analysis_9        To support the Budget Planning            OFFM-NO-0106,FMA         FFMIA        Mandatory        FV        Perform Managerial Accounting
                       process, the Core financial system
                       should provide automated functionality
                       to export financial operating and
                       spending plan data at the accounting
                       line item level in an Excel or ASCII text
                       delimited file format.




    July 29, 2009                                           Business Transformation Agency                                                    Page 238 of 742
                                                    Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_1   Upon completion of a system's            OMBCIRA-130,AppIII       FFMIA        Mandatory        FV        Collect
                            implementation tests, an agency                                                                           Disburse
                            official must certify that an accounting                                                                  Execute Apportionment and Allocate
                            system meets all applicable Federal                                                                       Funds
                            policies, regulations, and standards,                                                                     Execute Continuing Resolution
                            and that the results of the tests                                                                         Execute Rescission, Cancellation and
                            demonstrate that the installed security                                                                   Deferrals
                            safeguards are adequate for the                                                                           Manage Baseline for Reprogramming
                            application.                                                                                              Manage Execution Fund Account
                                                                                                                                      Manage Execution with Treasury
                                                                                                                                      Manage Financial Management Policy
                                                                                                                                      Manage Investments
                                                                                                                                      Manage Liabilities
                                                                                                                                      Manage Report of Programs
                                                                                                                                      Manage Returned Payments
                                                                                                                                      Perform Budgeting
                                                                                                                                      Perform Executive Level Planning
                                                                                                                                      Perform Financial Reporting
                                                                                                                                      Perform Managerial Accounting
                                                                                                                                      Perform Programming
                                                                                                                                      Perform Reprogramming and
                                                                                                                                      Transfers
                                                                                                                                      Post to General Ledger
                                                                                                                                      Record and Manage Receivable
                                                                                                                                      Support Congressional Budget Review
                                                                                                                                      Track Congressional Actions




    July 29, 2009                                                 Business Transformation Agency                                                   Page 239 of 742
                                                   Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_10   An accounting system must provide    OMBCIRA-130,8            FFMIA        Mandatory        FV        Collect
                             adequate and proper documentation of                                                                  Disburse
                             agency financial activities.                                                                          Execute Apportionment and Allocate
                                                                                                                                   Funds
                                                                                                                                   Execute Continuing Resolution
                                                                                                                                   Execute Rescission, Cancellation and
                                                                                                                                   Deferrals
                                                                                                                                   Manage Baseline for Reprogramming
                                                                                                                                   Manage Execution Fund Account
                                                                                                                                   Manage Execution with Treasury
                                                                                                                                   Manage Financial Management Policy
                                                                                                                                   Manage Investments
                                                                                                                                   Manage Liabilities
                                                                                                                                   Manage Report of Programs
                                                                                                                                   Manage Returned Payments
                                                                                                                                   Perform Budgeting
                                                                                                                                   Perform Executive Level Planning
                                                                                                                                   Perform Financial Reporting
                                                                                                                                   Perform Managerial Accounting
                                                                                                                                   Perform Programming
                                                                                                                                   Perform Reprogramming and
                                                                                                                                   Transfers
                                                                                                                                   Post to General Ledger
                                                                                                                                   Record and Manage Receivable
                                                                                                                                   Support Congressional Budget Review
                                                                                                                                   Track Congressional Actions




    July 29, 2009                                               Business Transformation Agency                                                  Page 240 of 742
                                                     Defense Financial Management Improvement Guidance

           Rule Name                   Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_11   An accounting system shall limit the     OMBCIRA-130,8           FFMIA        Mandatory        FV        Collect
                             sharing of information that identifies                                                                   Disburse
                             individuals or contains proprietary                                                                      Execute Apportionment and Allocate
                             information to that which is legally                                                                     Funds
                             authorized, and impose appropriate                                                                       Execute Continuing Resolution
                             conditions on use where a continuing                                                                     Execute Rescission, Cancellation and
                             obligation to ensure the confidentiality                                                                 Deferrals
                             of the information exists                                                                                Manage Baseline for Reprogramming
                                                                                                                                      Manage Execution Fund Account
                                                                                                                                      Manage Execution with Treasury
                                                                                                                                      Manage Financial Management Policy
                                                                                                                                      Manage Investments
                                                                                                                                      Manage Liabilities
                                                                                                                                      Manage Report of Programs
                                                                                                                                      Manage Returned Payments
                                                                                                                                      Perform Budgeting
                                                                                                                                      Perform Executive Level Planning
                                                                                                                                      Perform Financial Reporting
                                                                                                                                      Perform Managerial Accounting
                                                                                                                                      Perform Programming
                                                                                                                                      Perform Reprogramming and
                                                                                                                                      Transfers
                                                                                                                                      Post to General Ledger
                                                                                                                                      Record and Manage Receivable
                                                                                                                                      Support Congressional Budget Review
                                                                                                                                      Track Congressional Actions




    July 29, 2009                                                  Business Transformation Agency                                                  Page 241 of 742
                                                    Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_12   Concurrent with developing and         OMBCIRA-127,8           FFMIA        Mandatory        FV        Collect
                             implementing integrated financial                                                                      Disburse
                             management systems, agencies shall                                                                     Execute Apportionment and Allocate
                             consider program operations, roles                                                                     Funds
                             and responsibilities, and                                                                              Execute Continuing Resolution
                             policies/practices to identify related                                                                 Execute Rescission, Cancellation and
                             changes necessary to facilitate                                                                        Deferrals
                             financial management systems                                                                           Manage Baseline for Reprogramming
                             operational efficiency and                                                                             Manage Execution Fund Account
                             effectiveness.                                                                                         Manage Execution with Treasury
                                                                                                                                    Manage Financial Management Policy
                                                                                                                                    Manage Investments
                                                                                                                                    Manage Liabilities
                                                                                                                                    Manage Report of Programs
                                                                                                                                    Manage Returned Payments
                                                                                                                                    Perform Budgeting
                                                                                                                                    Perform Executive Level Planning
                                                                                                                                    Perform Financial Reporting
                                                                                                                                    Perform Managerial Accounting
                                                                                                                                    Perform Programming
                                                                                                                                    Perform Reprogramming and
                                                                                                                                    Transfers
                                                                                                                                    Post to General Ledger
                                                                                                                                    Record and Manage Receivable
                                                                                                                                    Support Congressional Budget Review
                                                                                                                                    Track Congressional Actions




    July 29, 2009                                                Business Transformation Agency                                                  Page 242 of 742
                                                     Defense Financial Management Improvement Guidance

           Rule Name                   Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_13   Agencies will limit collection of         OMBCIRA-130,8           FFMIA        Mandatory        FV        Collect
                             information, which identifies individuals                                                                 Disburse
                             to that which is legally authorized and                                                                   Execute Apportionment and Allocate
                             necessary for the proper performance                                                                      Funds
                             of agency functions.                                                                                      Execute Continuing Resolution
                                                                                                                                       Execute Rescission, Cancellation and
                                                                                                                                       Deferrals
                                                                                                                                       Manage Baseline for Reprogramming
                                                                                                                                       Manage Execution Fund Account
                                                                                                                                       Manage Execution with Treasury
                                                                                                                                       Manage Financial Management Policy
                                                                                                                                       Manage Investments
                                                                                                                                       Manage Liabilities
                                                                                                                                       Manage Report of Programs
                                                                                                                                       Manage Returned Payments
                                                                                                                                       Perform Budgeting
                                                                                                                                       Perform Executive Level Planning
                                                                                                                                       Perform Financial Reporting
                                                                                                                                       Perform Managerial Accounting
                                                                                                                                       Perform Programming
                                                                                                                                       Perform Reprogramming and
                                                                                                                                       Transfers
                                                                                                                                       Post to General Ledger
                                                                                                                                       Record and Manage Receivable
                                                                                                                                       Support Congressional Budget Review
                                                                                                                                       Track Congressional Actions




    July 29, 2009                                                  Business Transformation Agency                                                   Page 243 of 742
                                                    Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_14   Appropriate administrative, physical,  OMBCIRA-130,AppIII       FFMIA        Mandatory        FV        Collect
                             and technical safeguards must be built                                                                  Disburse
                             into an existing accounting system and                                                                  Execute Apportionment and Allocate
                             all new applications.                                                                                   Funds
                                                                                                                                     Execute Continuing Resolution
                                                                                                                                     Execute Rescission, Cancellation and
                                                                                                                                     Deferrals
                                                                                                                                     Manage Baseline for Reprogramming
                                                                                                                                     Manage Execution Fund Account
                                                                                                                                     Manage Execution with Treasury
                                                                                                                                     Manage Financial Management Policy
                                                                                                                                     Manage Investments
                                                                                                                                     Manage Liabilities
                                                                                                                                     Manage Report of Programs
                                                                                                                                     Manage Returned Payments
                                                                                                                                     Perform Budgeting
                                                                                                                                     Perform Executive Level Planning
                                                                                                                                     Perform Financial Reporting
                                                                                                                                     Perform Managerial Accounting
                                                                                                                                     Perform Programming
                                                                                                                                     Perform Reprogramming and
                                                                                                                                     Transfers
                                                                                                                                     Post to General Ledger
                                                                                                                                     Record and Manage Receivable
                                                                                                                                     Support Congressional Budget Review
                                                                                                                                     Track Congressional Actions




    July 29, 2009                                                 Business Transformation Agency                                                  Page 244 of 742
                                                     Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_15   Information Sharing. Ensure that        OMBCIRA-130,AppIII       FFMIA        Mandatory        FV        Collect
                             information shared from the                                                                              Disburse
                             application is protected appropriately,                                                                  Execute Apportionment and Allocate
                             comparable to the protection provided                                                                    Funds
                             when information is within the                                                                           Execute Continuing Resolution
                             application.                                                                                             Execute Rescission, Cancellation and
                                                                                                                                      Deferrals
                                                                                                                                      Manage Baseline for Reprogramming
                                                                                                                                      Manage Execution Fund Account
                                                                                                                                      Manage Execution with Treasury
                                                                                                                                      Manage Financial Management Policy
                                                                                                                                      Manage Investments
                                                                                                                                      Manage Liabilities
                                                                                                                                      Manage Report of Programs
                                                                                                                                      Manage Returned Payments
                                                                                                                                      Perform Budgeting
                                                                                                                                      Perform Executive Level Planning
                                                                                                                                      Perform Financial Reporting
                                                                                                                                      Perform Managerial Accounting
                                                                                                                                      Perform Programming
                                                                                                                                      Perform Reprogramming and
                                                                                                                                      Transfers
                                                                                                                                      Post to General Ledger
                                                                                                                                      Record and Manage Receivable
                                                                                                                                      Support Congressional Budget Review
                                                                                                                                      Track Congressional Actions




    July 29, 2009                                                 Business Transformation Agency                                                   Page 245 of 742
                                                      Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_2   All Agencies shall implement and        OMBCIRA-130,AppIII        FFMIA         Mandatory        FV        Collect
                            maintain a program to assure that                                                                          Disburse
                            adequate security is provided for all                                                                      Execute Apportionment and Allocate
                            agency information collected,                                                                              Funds
                            processed, transmitted, stored or                                                                          Execute Continuing Resolution
                            disseminated.                                                                                              Execute Rescission, Cancellation and
                                                                                                                                       Deferrals
                                                                                                                                       Manage Baseline for Reprogramming
                                                                                                                                       Manage Execution Fund Account
                                                                                                                                       Manage Execution with Treasury
                                                                                                                                       Manage Financial Management Policy
                                                                                                                                       Manage Investments
                                                                                                                                       Manage Liabilities
                                                                                                                                       Manage Report of Programs
                                                                                                                                       Manage Returned Payments
                                                                                                                                       Perform Budgeting
                                                                                                                                       Perform Executive Level Planning
                                                                                                                                       Perform Financial Reporting
                                                                                                                                       Perform Managerial Accounting
                                                                                                                                       Perform Programming
                                                                                                                                       Perform Reprogramming and
                                                                                                                                       Transfers
                                                                                                                                       Post to General Ledger
                                                                                                                                       Record and Manage Receivable
                                                                                                                                       Support Congressional Budget Review
                                                                                                                                       Track Congressional Actions




    July 29, 2009                                                   Business Transformation Agency                                                  Page 246 of 742
                                                     Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                     Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_3   Use a disciplined life cycle approach to DoDD8000.01,4             DFMIR        Mandatory        AV        Define Program
                            manage information resources form          DoDD8500.01E,4                                        MV        Develop Program
                            acquisition to retirement. Every           DoDI5000.2,3                                                    Execute Program
                            acquisition program shall establish                                                                        Manage and Support System
                            program goals-thresholds and                                                                               Retirement and Program Closeout
                            objectives-for the minimum number of                                                                       Monitor and Support System
                            cost, schedule, and performance                                                                            Deployment
                            parameters that describe the program                                                                       Update Asset Record
                            over its life cycle. Security policy shall
                            be considered throughout the life cycle
                            of a system from the beginning of
                            concept development, through design,
                            development, operation, and
                            maintenance until replacement or
                            disposal.




    July 29, 2009                                                  Business Transformation Agency                                                  Page 247 of 742
                                                      Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_4   Incorporate personal security controls    OMBCIRA-130,AppIII        FFMIA         Mandatory        FV        Collect
                            such as: separation of duties, least                                                                         Disburse
                            privilege and individual accountability                                                                      Execute Apportionment and Allocate
                            into the application and application                                                                         Funds
                            rules as appropriate.                                                                                        Execute Continuing Resolution
                                                                                                                                         Execute Rescission, Cancellation and
                                                                                                                                         Deferrals
                                                                                                                                         Manage Baseline for Reprogramming
                                                                                                                                         Manage Execution Fund Account
                                                                                                                                         Manage Execution with Treasury
                                                                                                                                         Manage Financial Management Policy
                                                                                                                                         Manage Investments
                                                                                                                                         Manage Liabilities
                                                                                                                                         Manage Report of Programs
                                                                                                                                         Manage Returned Payments
                                                                                                                                         Perform Budgeting
                                                                                                                                         Perform Executive Level Planning
                                                                                                                                         Perform Financial Reporting
                                                                                                                                         Perform Managerial Accounting
                                                                                                                                         Perform Programming
                                                                                                                                         Perform Reprogramming and
                                                                                                                                         Transfers
                                                                                                                                         Post to General Ledger
                                                                                                                                         Record and Manage Receivable
                                                                                                                                         Support Congressional Budget Review
                                                                                                                                         Track Congressional Actions




    July 29, 2009                                                     Business Transformation Agency                                                  Page 248 of 742
                                                     Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_5   An accounting system shall protect    OMBCIRA-130,8             FFMIA         Mandatory        FV        Collect
                            government information                                                                                   Disburse
                            commensurate with the risk and                                                                           Execute Apportionment and Allocate
                            magnitude of harm that could result                                                                      Funds
                            from the loss, misuse, unauthorized                                                                      Execute Continuing Resolution
                            access to, or modification of such                                                                       Execute Rescission, Cancellation and
                            information.                                                                                             Deferrals
                                                                                                                                     Manage Baseline for Reprogramming
                                                                                                                                     Manage Execution Fund Account
                                                                                                                                     Manage Execution with Treasury
                                                                                                                                     Manage Financial Management Policy
                                                                                                                                     Manage Investments
                                                                                                                                     Manage Liabilities
                                                                                                                                     Manage Report of Programs
                                                                                                                                     Manage Returned Payments
                                                                                                                                     Perform Budgeting
                                                                                                                                     Perform Executive Level Planning
                                                                                                                                     Perform Financial Reporting
                                                                                                                                     Perform Managerial Accounting
                                                                                                                                     Perform Programming
                                                                                                                                     Perform Reprogramming and
                                                                                                                                     Transfers
                                                                                                                                     Post to General Ledger
                                                                                                                                     Record and Manage Receivable
                                                                                                                                     Support Congressional Budget Review
                                                                                                                                     Track Congressional Actions




    July 29, 2009                                                 Business Transformation Agency                                                  Page 249 of 742
                                                    Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                    Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_6   An accounting system shall record,        OMBCIRA-130,8           FFMIA        Mandatory        FV        Collect
                            preserve, and make accessible                                                                             Disburse
                            sufficient information to: (1) ensure the                                                                 Execute Apportionment and Allocate
                            adequate management and                                                                                   Funds
                            accountability of an agency program,                                                                      Execute Continuing Resolution
                            and (2) protect the legal and financial                                                                   Execute Rescission, Cancellation and
                            rights of the Federal Government.                                                                         Deferrals
                                                                                                                                      Manage Baseline for Reprogramming
                                                                                                                                      Manage Execution Fund Account
                                                                                                                                      Manage Execution with Treasury
                                                                                                                                      Manage Financial Management Policy
                                                                                                                                      Manage Investments
                                                                                                                                      Manage Liabilities
                                                                                                                                      Manage Report of Programs
                                                                                                                                      Manage Returned Payments
                                                                                                                                      Perform Budgeting
                                                                                                                                      Perform Executive Level Planning
                                                                                                                                      Perform Financial Reporting
                                                                                                                                      Perform Managerial Accounting
                                                                                                                                      Perform Programming
                                                                                                                                      Perform Reprogramming and
                                                                                                                                      Transfers
                                                                                                                                      Post to General Ledger
                                                                                                                                      Record and Manage Receivable
                                                                                                                                      Support Congressional Budget Review
                                                                                                                                      Track Congressional Actions




    July 29, 2009                                                 Business Transformation Agency                                                   Page 250 of 742
                                                    Defense Financial Management Improvement Guidance

           Rule Name                 Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_7   An accounting system shall have      OMBCIRA-130,8             FFMIA         Mandatory        FV        Collect
                            records management and archival                                                                         Disburse
                            functions built into the design,                                                                        Execute Apportionment and Allocate
                            development, and implementation of                                                                      Funds
                            the information system.                                                                                 Execute Continuing Resolution
                                                                                                                                    Execute Rescission, Cancellation and
                                                                                                                                    Deferrals
                                                                                                                                    Manage Baseline for Reprogramming
                                                                                                                                    Manage Execution Fund Account
                                                                                                                                    Manage Execution with Treasury
                                                                                                                                    Manage Financial Management Policy
                                                                                                                                    Manage Investments
                                                                                                                                    Manage Liabilities
                                                                                                                                    Manage Report of Programs
                                                                                                                                    Manage Returned Payments
                                                                                                                                    Perform Budgeting
                                                                                                                                    Perform Executive Level Planning
                                                                                                                                    Perform Financial Reporting
                                                                                                                                    Perform Managerial Accounting
                                                                                                                                    Perform Programming
                                                                                                                                    Perform Reprogramming and
                                                                                                                                    Transfers
                                                                                                                                    Post to General Ledger
                                                                                                                                    Record and Manage Receivable
                                                                                                                                    Support Congressional Budget Review
                                                                                                                                    Track Congressional Actions




    July 29, 2009                                                Business Transformation Agency                                                  Page 251 of 742
                                                     Defense Financial Management Improvement Guidance

           Rule Name                  Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_8   An accounting system shall collect or   OMBCIRA-130,8             FFMIA         Mandatory        FV        Collect
                            create only the information necessary                                                                      Disburse
                            for the proper performance of agency                                                                       Execute Apportionment and Allocate
                            functions and which has practical                                                                          Funds
                            utility.                                                                                                   Execute Continuing Resolution
                                                                                                                                       Execute Rescission, Cancellation and
                                                                                                                                       Deferrals
                                                                                                                                       Manage Baseline for Reprogramming
                                                                                                                                       Manage Execution Fund Account
                                                                                                                                       Manage Execution with Treasury
                                                                                                                                       Manage Financial Management Policy
                                                                                                                                       Manage Investments
                                                                                                                                       Manage Liabilities
                                                                                                                                       Manage Report of Programs
                                                                                                                                       Manage Returned Payments
                                                                                                                                       Perform Budgeting
                                                                                                                                       Perform Executive Level Planning
                                                                                                                                       Perform Financial Reporting
                                                                                                                                       Perform Managerial Accounting
                                                                                                                                       Perform Programming
                                                                                                                                       Perform Reprogramming and
                                                                                                                                       Transfers
                                                                                                                                       Post to General Ledger
                                                                                                                                       Record and Manage Receivable
                                                                                                                                       Support Congressional Budget Review
                                                                                                                                       Track Congressional Actions




    July 29, 2009                                                   Business Transformation Agency                                                  Page 252 of 742
                                                   Defense Financial Management Improvement Guidance

           Rule Name                 Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

General_System_Controls_9   An accounting system must use          OMBCIRA-130,8           FFMIA        Mandatory        FV        Collect
                            electronic collection techniques where                                                                 Disburse
                            such techniques reduce the                                                                             Execute Apportionment and Allocate
                            compliance burden on the public,                                                                       Funds
                            increase the efficiency of government                                                                  Execute Continuing Resolution
                            programs, reduce the cost to the                                                                       Execute Rescission, Cancellation and
                            government and the public, and/or                                                                      Deferrals
                            provide better service to the public.                                                                  Manage Baseline for Reprogramming
                                                                                                                                   Manage Execution Fund Account
                                                                                                                                   Manage Execution with Treasury
                                                                                                                                   Manage Financial Management Policy
                                                                                                                                   Manage Investments
                                                                                                                                   Manage Liabilities
                                                                                                                                   Manage Report of Programs
                                                                                                                                   Manage Returned Payments
                                                                                                                                   Perform Budgeting
                                                                                                                                   Perform Executive Level Planning
                                                                                                                                   Perform Financial Reporting
                                                                                                                                   Perform Managerial Accounting
                                                                                                                                   Perform Programming
                                                                                                                                   Perform Reprogramming and
                                                                                                                                   Transfers
                                                                                                                                   Post to General Ledger
                                                                                                                                   Record and Manage Receivable
                                                                                                                                   Support Congressional Budget Review
                                                                                                                                   Track Congressional Actions




    July 29, 2009                                               Business Transformation Agency                                                  Page 253 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Generate_Bills_And_Statements_1    To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Prepare Reimbursable Bill
                                   process, the Core financial system
                                   must provide automated functionality
                                   to calculate billing amounts and
                                   generate bills to customers based on
                                   reimbursable agreement billing terms,
                                   such as:
                                   • Percentage of work completed

                                   • Accrued expenditures

                                   • Actual costs incurred (direct and
                                   indirect using data from the cost
                                   management system).
                                   Include the following information on
                                   the bills:
                                   • Customer name

                                   • Customer address

                                   • Customer contact name

                                   • Agency contact name, office,
                                   address and telephone number; and
                                   • Date due.



Generate_Bills_And_Statements_10   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Establish Receivable
                                   process, the Core financial system                                                                    Generate Demand for Payment
                                   must provide automated functionality
                                   consolidate multiple receivables for a
                                   customer onto one bill retaining
                                   identification of each receivable
                                   separately within the bill.


Generate_Bills_And_Statements_11   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Calculate Aging
                                   process, the Core financial system
                                   must provide automated functionality
                                   to capture the original baseline
                                   receivable date on receivables
                                   converted from legacy systems, in
                                   order to properly age the receivable.




    July 29, 2009                                                     Business Transformation Agency                                                  Page 254 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Generate_Bills_And_Statements_12   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Establish Receivable
                                   process, the Core financial system                                                                    Generate Demand for Payment
                                   must provide automated functionality
                                   to generate bills to non-reimbursable
                                   customers based on receivables
                                   recorded. Include the following
                                   information on the bills:
                                   • Customer name

                                   • Customer address

                                   • Customer contact name

                                   • Agency contact name, office,
                                   address and telephone number
                                   • Date due.


Generate_Bills_And_Statements_13   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Receive and Validate Request for
                                   process, the Core financial system                                                                    Billing
                                   must provide automated functionality
                                   to monitor billing limits on a
                                   reimbursable agreement. Reject, warn
                                   or inform the agency when limit is
                                   exceeded.
Generate_Bills_And_Statements_14   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Establish Receivable
                                   process, the Core financial system
                                   must provide automated functionality
                                   to generate bills based on pre-defined
                                   fee schedules or payment schedules.


Generate_Bills_And_Statements_15   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Establish Receivable
                                   process, the Core financial system                                                                    Generate Demand for Payment
                                   must provide automated functionality
                                   to generate bills to third party payers
                                   as responsible debtors.


Generate_Bills_And_Statements_16   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Review Outstanding Principal Balance
                                   process, the Core financial system
                                   must provide automated functionality
                                   to include advances and prior
                                   collections received on bills.




    July 29, 2009                                                     Business Transformation Agency                                                  Page 255 of 742
                                                          Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Generate_Bills_And_Statements_17   To support the Receivables and Billing OFFM-NO-0106,RMB         FFMIA        Mandatory        FV        Establish Receivable
                                   process, the Core financial system
                                   must provide automated functionality
                                   to list principal, interest, penalties, and
                                   administrative charges separately on a
                                   bill and provide a description of each.



Generate_Bills_And_Statements_18   To support the Receivables and Billing OFFM-NO-0106,RMB         FFMIA        Mandatory        FV        Establish Receivable
                                   process, the Core financial system
                                   must provide automated functionality
                                   to update receivable status from
                                   unbilled to billed when bills are
                                   generated. Associate the receivable
                                   with the bill number and bill date.


Generate_Bills_And_Statements_19   To support the Receivables and Billing OFFM-NO-0106,RMB         FFMIA        Mandatory        FV        Re-Calculate Receivable
                                   process, the Core financial system
                                   must provide automated functionality
                                   to re-establish a receivable when a
                                   check collection is cancelled due to
                                   insufficient funds or a when a
                                   chargeback is recorded. Capture the
                                   original baseline receivable date and
                                   update receivable status from billed to
                                   unbilled.


Generate_Bills_And_Statements_2    To support the Receivables and Billing JFMIPSR-03-01,pg36       FFMIA        Mandatory        FV        Prepare Reimbursable Bill
                                   process, the Core financial system     OFFM-NO-0106,RMB
                                   must provide automated functionality OFFM-NO-0106,RMB
                                   to generate bills in hard-copy format,
                                   including Standard Forms 1080 and
                                   1081 and capture a unique bill number
                                   and a bill date on system-generated
                                   bills. Allow for customized text and
                                   descriptive information in generating
                                   billing documents.




    July 29, 2009                                                      Business Transformation Agency                                                   Page 256 of 742
                                                              Defense Financial Management Improvement Guidance

           Rule Name                          Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Generate_Bills_And_Statements_20   To support the Receivable                 JFMIPSR-03-01,pg35        FFMIA         Mandatory        FV        Determine Billing Requirements
                                   Management Process, the Revenue
                                   System must provide the capability to
                                   identify multiple types of bills (e.g.,
                                   overpayments, user fee based) and
                                   the supporting data used to verify the
                                   specific charges.


Generate_Bills_And_Statements_21   To support the Bill Generation           JFMIPSR-03-01,pg36         FFMIA         Mandatory        FV        Determine Billing Requirements
                                   function, the Revenue System must                                                                            Generate Demand for Payment
                                   provide the capability to generate bills
                                   to customers based on accounts
                                   receivable calculation, event and time
                                   period, and type of claim. Bases used
                                   for billing may include:
                                   • Percentage of reimbursable
                                   obligations, accrued expenditures or
                                   costs;
                                   • Fee schedules for goods or services
                                   provided; and
                                   • Payment schedules or other
                                   agreements with other entities.


Generate_Bills_And_Statements_22   To support the Bill Generation           JFMIPSR-03-01,pg36         FFMIA         Mandatory        FV        Calculate Interest
                                   function, the Revenue System must
                                   provide the capability to automatically
                                   calculate additional customer charges
                                   (e.g., interest) using user-defined
                                   criteria and automatically generate
                                   separate line item to reflect charges on
                                   the bill.


Generate_Bills_And_Statements_23   To support the Bill Generation            JFMIPSR-03-01,pg36        FFMIA         Mandatory        FV        Confirm Billing
                                   function, the Revenue System must
                                   provide the capability to support bills
                                   between business partners and
                                   provide supporting data to agencies
                                   billed which can be used to verify the
                                   charges.




    July 29, 2009                                                            Business Transformation Agency                                                   Page 257 of 742
                                                               Defense Financial Management Improvement Guidance

           Rule Name                          Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)             BPM Process(es)

Generate_Bills_And_Statements_24   To support the Bill Generation             JFMIPSR-03-01,pg36        FFMIA         Mandatory        FV        Reject Accounts Receivable Request
                                   function, the Revenue System must
                                   provide the capability to reverse a bill
                                   issued non-IPAC, and reissue the bill
                                   via IPAC and vice versa.


Generate_Bills_And_Statements_25   To support the Bill Generation           JFMIPSR-03-01,pg36          FFMIA         Mandatory        FV        Establish Receivable
                                   function, the Revenue System must                                                                             Generate Demand for Payment
                                   provide the capability to generate bills
                                   prepared manually and allow
                                   transactions to be entered onto bill by
                                   authorized personnel.


Generate_Bills_And_Statements_26   To support the Bill Generation             JFMIPSR-03-01,pg36        FFMIA         Mandatory        FV        Re-Calculate Receivable
                                   function, the Revenue System must
                                   provide the capability to allow
                                   adjustments to billing data prior to
                                   billing.
Generate_Bills_And_Statements_27   To support the Bill Generation             JFMIPSR-03-01,pg36        FFMIA         Mandatory        FV        Confirm Billing
                                   function, the Revenue System must
                                   provide the capability to store billing
                                   supporting information.
Generate_Bills_And_Statements_28   To support the Bill Generation             JFMIPSR-03-01,pg36        FFMIA         Mandatory        FV        Manage General Ledger
                                   function, the Revenue System must
                                   provide the capability to perform on-
                                   line "drill downs" from general ledger
                                   summary balances to detail
                                   transactions and referenced
                                   documents.
Generate_Bills_And_Statements_29   To support the Bill Generation             JFMIPSR-03-01,pg36        FFMIA         Mandatory        FV        Issue Credit Memo
                                   function, the Revenue System must
                                   provide the capability to issue credit
                                   bills when merchandise is returned.




    July 29, 2009                                                             Business Transformation Agency                                                   Page 258 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Generate_Bills_And_Statements_3    To support the Receivable                 DoDFMRVol4,Ch3,Sub030504   FFMIA        Mandatory        FV        Prepare Reimbursable Bill
                                   Management Process, the Revenue           JFMIPSR-03-01,pg35
                                   System must provide the capability to
                                   support bills and collections between
                                   Federal agencies through the use of
                                   electronic systems such as IPAC.
                                   Provide supporting data to agencies
                                   billed which can be used to verify the
                                   charges.


Generate_Bills_And_Statements_30   To support the Bill Generation             JFMIPSR-03-01,pg37        FFMIA        Mandatory        FV        Establish Customer Information
                                   function, the Revenue System must
                                   provide the capability to maintain, on-
                                   line, all activity related to the customer
                                   including date of last update and last
                                   date customer contact made, at
                                   document level.
Generate_Bills_And_Statements_31   To support the Bill Generation            JFMIPSR-03-01,pg37         FFMIA        Mandatory        FV        Determine Billing Requirements
                                   function, the Revenue System must
                                   provide the capability to generate
                                   recurring billings with pre-defined
                                   customer and amount information.


Generate_Bills_And_Statements_32   To support the Bill Generation            JFMIPSR-03-01,pg37         FFMIA        Value Added      FV        Determine Billing Requirements
                                   function, the Revenue System should
                                   provide the capability to sort and
                                   summarize billing line item
                                   information, using user-defined
                                   criteria.
Generate_Bills_And_Statements_33   To support the Bill Generation            JFMIPSR-03-01,pg37         FFMIA        Value Added      FV        Record and Manage Receivable
                                   function, the Revenue System should
                                   provide the capability to allow
                                   customers to access their bills via the
                                   Internet.
Generate_Bills_And_Statements_34   To support the Bill Generation            JFMIPSR-03-01,pg37         FFMIA        Value Added      FV        Record and Manage Receivable
                                   function, the Revenue System should
                                   provide the capability to produce billing
                                   statements with tear-off portion,
                                   Magnetic Ink Character Recognition
                                   (MICR)-encoded to facilitate a lockbox
                                   operation.




    July 29, 2009                                                            Business Transformation Agency                                                  Page 259 of 742
                                                         Defense Financial Management Improvement Guidance

            Rule Name                      Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Generate_Bills_And_Statements_4   To support the Receivables and Billing OFFM-NO-0106,RMB         FFMIA        Mandatory        FV        Establish Receivable
                                  process, the Core financial system
                                  must provide automated functionality
                                  to capture information from manually
                                  prepared bills. Update receivable
                                  document (e.g., change status of
                                  receivable from unbilled to billed) with
                                  manual bill information.


Generate_Bills_And_Statements_5   To support the Receivables and Billing JFMIPSR-03-01,pg36       FFMIA        Mandatory        FV        Establish Receivable
                                  process, the Core financial system      OFFM-NO-0106,RMB
                                  must provide automated functionality
                                  to derive the bill date from the system
                                  date and allow for override.




    July 29, 2009                                                     Business Transformation Agency                                                   Page 260 of 742
                                                        Defense Financial Management Improvement Guidance

            Rule Name                      Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Generate_Bills_And_Statements_6   To support the Receivables and Billing OFFM-NO-0106,RMB       FFMIA        Mandatory        FV        Establish Receivable
                                  process, the Core financial system                                                                    Perform Financial Reporting
                                  must provide automated functionality
                                  to generate Customer Account
                                  Statements. Parameters include
                                  customer type, customer ID number,
                                  customer name, and time period
                                  (month, quarter, year-to-date). Result
                                  is a statement for each customer that
                                  includes:
                                  • Statement date

                                  • Customer ID number

                                  • Customer name

                                  • Customer address

                                  • Customer contact name

                                  • Agency name

                                  • Agency contact name

                                  • Agency contact phone number

                                  • Agency contact email address

                                  • Balance brought forward

                                  • Receivables established (including
                                  due dates)
                                  • Interest

                                  • Penalties

                                  • Administrative costs

                                  • Adjustments made

                                  • Collections received (identify
                                  principal, interest, penalties, and
                                  administrative charges separately to
                                  indicate how collections were
                                  applied)
                                  • Outstanding receivable balance.

                                  Provide agency the option to generate
                                  customer statements in Excel format.




    July 29, 2009                                                    Business Transformation Agency                                                  Page 261 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                       Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Generate_Bills_And_Statements_7   To support the Debt Management         JFMIPSR-03-01,pg39        FFMIA         Mandatory        FV        Generate Dunning
                                  process, the Core financial system     OFFM-NO-0106,RMC
                                  must provide automated functionality
                                  to generate dunning notices on
                                  overdue receivables at frequencies
                                  specified by the agency, including on-
                                  demand, and by agency-defined
                                  parameters, including customer type.


Generate_Bills_And_Statements_8   To support the Debt Management         JFMIPSR-03-01,pg40        FFMIA         Mandatory        FV        Generate Dunning
                                  process, the Core financial system     OFFM-NO-0106,RMC
                                  must provide automated functionality
                                  to customize text used on dunning
                                  notices based on receivable age
                                  categories and customer types.


Generate_Bills_And_Statements_9   To support the Receivables and Billing OFFM-NO-0106,RMB          FFMIA         Mandatory        FV        Establish Receivable
                                  process, the Core financial system
                                  must provide automated functionality
                                  to customize the text and data
                                  elements to be displayed on system-
                                  generated bills, by customer type,
                                  receivable type, or billing method. For
                                  example, an IPAC bill for the sale of
                                  goods and services would need to
                                  contain different supporting text than a
                                  bill to an employee for an
                                  overpayment.




    July 29, 2009                                                        Business Transformation Agency                                                  Page 262 of 742
                                                 Defense Financial Management Improvement Guidance

           Rule Name             Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Closeout_1       To support the Financial Status Report JFMIPSR-00-3,pg34          FFMIA         Mandatory        FV        Record Loans and Grants
                       (FSR) Closing Process the system
                       must ensure that:
                       - the amount reported as expense
                       agrees with the cash disbursed
                       - any unobligated balances are
                       deobligated in the accounting system
                       - a closing transaction is
                       recorded/issued to close out the grant
                       in the accounting system
                       - procedures are established to identify
                       grantees who are delinquent in
                       submitting final reports




Grant_Closeout_2       To support the Federal Cash             JFMIPSR-00-3,pg34         FFMIA         Mandatory        FV        Record Loans and Grants
                       Transaction Report (FCTR) Process
                       the system must:
                       - monitor accounts that have
                       expired grants and have not been
                       reported closed by the recipient
                       - track open grants funded
                       from appropriations that are expiring
                       within the next 12 months

Grant_Closeout_3       To support the Post Closing            JFMIPSR-00-3,pg34          FFMIA         Mandatory        FV        Record Loans and Grants
                       Collections Process the system must
                       have accounting procedures to collect
                       receivables and liquidate payables due
                       after the close out of the grant.


Grant_Closeout_4       To support the Reconciliation Process JFMIPSR-00-3,pg34           FFMIA         Mandatory        FV        Record Loans and Grants
                       the system must maintain sufficient
                       information to reconcile with the
                       agency’s core financial system.




    July 29, 2009                                              Business Transformation Agency                                                 Page 263 of 742
                                                   Defense Financial Management Improvement Guidance

           Rule Name              Rule Description                       Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Commitments_1    The system should support the               JFMIPSR-00-3,pg13         FFMIA         Value Added      FV        Record Loans and Grants
                       process of initiating commitment
                       requests including the following data
                       elements:
                       - commitment request identifier
                       - requisition date
                       - corresponding proposal identifier
                       - funding dollar amount
                       - fund code(s)/appropriation code(s)
                       - accounting code
                       - budget year(s) of funding
                       - name of the individual initiating the
                       commitment
                       - object classification
                       - catalog of federal domestic
                       assistance (CFDA) number




Grant_Commitments_2    The system should support the ability JFMIPSR-00-3,pg13               FFMIA         Value Added      FV        Record Loans and Grants
                       to route the commitment request to the
                       Approving Official(s).

Grant_Commitments_3    The system should support the ability       JFMIPSR-00-3,pg13,14      FFMIA         Value Added      FV        Record Loans and Grants
                       to review approved commitment
                       requests against edits such as:
                       - verify authority of approving officials
                       - validate commitment data input by
                       requestor
                       - verify accounting code(s)
                       - verify funds availability
                       - provide controls to prevent
                       processing a duplicate document.



Grant_Commitments_4    The system should be capable of             JFMIPSR-00-3,pg14         FFMIA         Value Added      FV        Record Loans and Grants
                       committing funds and posting
                       transactions to the standard general
                       ledger (SGL).
Grant_Commitments_5    The system should support notifying         DoDFMRVol12,Ch5           FFMIA         Value Added      FV        Record Loans and Grants
                       the procurement/grants office to start      JFMIPSR-00-3,pg14
                       negotiation of grant with potential
                       grantee.


   July 29, 2009                                                   Business Transformation Agency                                                 Page 264 of 742
                                                  Defense Financial Management Improvement Guidance

           Rule Name              Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Commitments_6     The system should support the           JFMIPSR-00-3,pg13          FFMIA         Value Added      FV        Record Loans and Grants
                        decision to fund a grant, which occurs
                        after the proposal application process
                        (involving application receipt, review,
                        and selection) has been completed.


Grant_Cost_Accruals_1   The system must maintain various         DoDFMRVol12,Ch5           FFMIA         Mandatory        FV        Record Loans and Grants
                        grant accrual data such as:              JFMIPSR-00-3,pg25
                        - internal historical financial data
                        - criteria/structure of agency
                        programs
                        - relevant external information on the
                        timing and nature of
                        recipients' cash flows
Grant_Cost_Accruals_2   The system must maintain the          DoDFMRVol12,Ch5              FFMIA         Mandatory        FV        Record Loans and Grants
                        amounts disbursed to grantees during JFMIPSR-00-3,pg25
                        each year and the amounts of
                        expenses reported by the grantee.
                        Other data such as grant award
                        amounts and remittances should be
                        included in the information database.


Grant_Cost_Accruals_3   The system must either have a format DoDFMRVol12,Ch5               FFMIA         Mandatory        FV        Record Loans and Grants
                        structured to facilitate accrual       JFMIPSR-00-3,pg25
                        accounting or provide an alternate
                        process that will calculate an accrual
                        estimate.
Grant_Cost_Accruals_4   To support the grant accrual process JFMIPSR-00-3,pg26             FFMIA         Mandatory        FV        Record Loans and Grants
                        the system must have the ability to
                        review electronic files of grant and
                        grantee records including program and
                        financial files and select and retrieve
                        specific items from these files and
                        compare that data to data stored in
                        other programs.




    July 29, 2009                                                Business Transformation Agency                                                 Page 265 of 742
                                                  Defense Financial Management Improvement Guidance

           Rule Name              Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Cost_Accruals_5   To support the grant accrual process JFMIPSR-00-3,pg26             FFMIA         Mandatory        FV        Record Loans and Grants
                        the system must make the following
                        data available for selection during the
                        AP accrual process: the grantee’s
                        identification number, types of grants
                        received, grant numbers, dollar
                        amounts, time periods, grantee’s
                        financial history by fiscal quarters, and
                        other data considered pertinent to the
                        Agency.



Grant_Cost_Accruals_6   To support the grant accrual process JFMIPSR-00-3,pg26             FFMIA         Mandatory        FV        Record Loans and Grants
                        the system must have the capability to
                        recognize liabilities for any unpaid
                        amounts due at a specific point in
                        time; e.g., the end of a month, quarter
                        or fiscal year.
Grant_Cost_Accruals_7   To support the grant accrual process JFMIPSR-00-3,pg26             FFMIA         Mandatory        FV        Record Loans and Grants
                        the system must produce the
                        information necessary to reasonably
                        estimate the amount of funds listed as
                        an advance to grantees which should
                        be expensed and the amount of
                        unreported grantee expenses to record
                        as a liability at the end of a fiscal
                        period.


Grant_Cost_Accruals_8   To support the grant accrual process JFMIPSR-00-3,pg26             FFMIA         Mandatory        FV        Record Loans and Grants
                        the system must use the Standard
                        General Ledger (SGL) accounts at the
                        transaction-level.
Grant_Decommitments_1   The system should support the            JFMIPSR-00-3,pg16         FFMIA         Value Added      FV        Record Loans and Grants
                        initiation of decommitment requests.
                        The request should be automatically
                        transmitted to the proper financial
                        official(s). The system should also be
                        capable of maintaining organization
                        specific budgetary and program data
                        regarding request.




    July 29, 2009                                                Business Transformation Agency                                                 Page 266 of 742
                                                       Defense Financial Management Improvement Guidance

            Rule Name                  Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Decommitments_2       The system should be able to process JFMIPSR-00-3,pg16              FFMIA         Value Added      FV        Record Loans and Grants
                            approved decommitments through a
                            series of edit checks such as: (1)
                            verify authority of Approving Official(s)
                            (2) validate data input by requestor,
                            CFDA Number.


Grant_Decommitments_3       The system should be able to              JFMIPSR-00-3,pg16         FFMIA         Value Added      FV        Record Loans and Grants
                            decommit funds and post the
                            transaction to the standard general
                            ledger.
Grant_Decommitments_4       The system should support notifying   JFMIPSR-00-3,pg16             FFMIA         Value Added      FV        Record Loans and Grants
                            program office staff of decommitments
                            processed.
Grant_Decommitments_5       The system should support conversion JFMIPSR-00-3,pg16              FFMIA         Value Added      FV        Record Loans and Grants
                            of outstanding commitments to valid
                            obligations or their decommitment
                            before the expiration date of the funds
                            committed.


Grant_Financial_Reports_1   The system must be able to receive         JFMIPSR-00-3,pg32        FFMIA         Mandatory        FV        Record Loans and Grants
                            financial reports electronically that will
                            feed automatically into the grants
                            financial report process.

Grant_Financial_Reports_2   The system must be able to review         JFMIPSR-00-3,pg32         FFMIA         Mandatory        FV        Record Loans and Grants
                            reports and verify for:
                            - completeness- mathematical
                            correctness
                            - validity of information such as grant
                            numbers and award
                            numbers
                            - proper certification- assurance that
                            amounts reported as
                            expenditures do not exceed the
                            balance of funds available
                            - provide controls to prevent
                            processing duplicate reports
                            - reports failing the edit process are
                            returned to the grantee.




    July 29, 2009                                                     Business Transformation Agency                                                 Page 267 of 742
                                                               Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Financial_Reports_3            The system must be capable of            JFMIPSR-00-3,pg32        FFMIA         Mandatory        FV        Record Loans and Grants
                                     preparing specific transactions relating
                                     to the expenditure of funds. These
                                     transactions must be posted to the
                                     Standard General Ledger.


Grant_Financial_Reports_4            The system must maintain sufficient     DoDFMRVol12,Ch5           FFMIA         Mandatory        FV        Record Loans and Grants
                                     and appropriate information for         JFMIPSR-00-3,pg32
                                     reconciliation with the agency's Core
                                     Financial System.

Grant_Financial_Reports_5            The system must support the initiation JFMIPSR-00-3,pg30          FFMIA         Mandatory        FV        Record Loans and Grants
                                     of the financial report process by
                                     providing the ability to:
                                     - review electronic files of the grant
                                     and grantee
                                     - select and review specific items
                                     (data) from these files
                                     - compare the selected data to data
                                     previously stored in the FRP


Grant_Financial_Reports_6            The system must be capable of           JFMIPSR-00-3,pg30         FFMIA         Mandatory        FV        Record Loans and Grants
                                     updating the FRP file. Data should
                                     include the grantee's identification
                                     number, types of grants received,
                                     grant identifying number, dollar
                                     amounts, time period of performance,
                                     grantee's financial history by grant,
                                     and other data considered important
                                     by the granting agency.


Grant_General_System_Requirements The system must provide flexibility in     JFMIPSR-00-3,pg36         FFMIA         Mandatory        FV        Record Loans and Grants
_1                                accepting data input from multiple
                                  media so that it can recognize the
                                  unique data input requirements of
                                  interface systems.
Grant_General_System_Requirements The system must subject all             JFMIPSR-00-3,pg36            FFMIA         Mandatory        FV        Record Loans and Grants
_2                                transactions from interfacing systems
                                  to the grant financial system edits and
                                  validation.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 268 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                   Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_General_System_Requirements The system must provide the               JFMIPSR-00-3,pg36        FFMIA        Mandatory        FV        Record Loans and Grants
_3                                capability to customize data input,
                                  processing rules, and edit criteria. It
                                  must also provide flexibility in defining
                                  internal operational procedures and in
                                  supporting agency requirements.


Grant_General_System_Requirements The system must provide the             JFMIPSR-00-3,pg36          FFMIA        Mandatory        FV        Record Loans and Grants
_4                                capability to identify and process
                                  information from other systems that
                                  enter and update the standard grant
                                  financial system.
Grant_General_System_Requirements The system must provide the            JFMIPSR-00-3,pg36           FFMIA        Mandatory        FV        Record Loans and Grants
_5                                capability to allow users to customize
                                  output for reporting and providing
                                  interfaces to other systems necessary
                                  to meet agency requirements for
                                  external processing (e.g., general
                                  ledger posting, budget formulation,
                                  budget reconciliation and budget
                                  execution).


Grant_General_System_Requirements The system must capture the             JFMIPSR-00-3,pg36          FFMIA        Mandatory        FV        Record Loans and Grants
_6                                transaction dates in order to ensure
                                  compliance with the Cash
                                  Management Improvement Act.
Grant_General_System_Requirements The system must capture information     JFMIPSR-00-3,pg36          FFMIA        Mandatory        FV        Record Loans and Grants
_7                                to comply with reporting and referral
                                  requirements of the Debt Collection
                                  Improvement Act of 1996.

Grant_General_System_Requirements The system must capture information JFMIPSR-00-3,pg36              FFMIA        Mandatory        FV        Record Loans and Grants
_8                                necessary to report on property, plant, SFFAS6
                                  and equipment in the hands of
                                  grantees as required by Statement of
                                  Federal Financial Accounting
                                  Standards No. 6 (SFFAS No. 6)
                                  Accounting for Property, Plant and
                                  Equipment.




    July 29, 2009                                                         Business Transformation Agency                                                 Page 269 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                        Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_General_System_Requirements The system must capture financial         DoDFMRVol12,Ch5           FFMIA         Mandatory        FV        Record Loans and Grants
_9                                information necessary to comply with      JFMIPSR-00-3,pg36
                                  OMB Circular A-110 Uniform
                                  Administrative Requirements for
                                  Grants and Agreements with
                                  Institutions of Higher Education,
                                  Hospitals, and Other Non-Profit
                                  Organizations (11/19/93, amended
                                  9/30/99).

Grant_Interest_Collections_1        The system must support interest        JFMIPSR-00-3,pg33         FFMIA         Mandatory        FV        Record Loans and Grants
                                    earned on advances of Federal funds
                                    by state agencies, instrumentalities,
                                    and fiscal agents as governed by the
                                    Cash Management Improvement Act
                                    (CMIA) of 1996.


Grant_Interest_Collections_2        The system must support interest     JFMIPSR-00-3,pg33            FFMIA         Mandatory        FV        Record Loans and Grants
                                    earned on Federal advances by other
                                    grantee organizations as governed by
                                    OMB Circular A-110, Grants
                                    Management Common Rule, or
                                    program regulations as applicable.


Grant_Obligations_1                 The system must be able to record       JFMIPSR-00-3,pg18         FFMIA         Mandatory        FV        Record Loans and Grants
                                    obligations of funds; maintain
                                    chronological order of commitments,
                                    obligations, and payments; and cite
                                    multiple appropriations or other
                                    funding sources.


Grant_Obligations_2                 The system must be able to capture   DoDFMRVol12,Ch5              FFMIA         Mandatory        FV        Record Loans and Grants
                                    data elements such as:               JFMIPSR-00-3,pg18,20
                                    - Grant Number- Grantee or Recipient
                                    Name
                                    - Grantee Identifier
                                    - Grant Purpose
                                    - Dollar Amount
                                    - Accounting Classification Data
                                    - Tax Payer Identification
                                    - CFDA Number.

Grant_Obligations_3                 The system must allow for               DoDFMRVol12,Ch5           FFMIA         Mandatory        FV        Record Loans and Grants
                                    transactions to be posted to the        JFMIPSR-00-3,pg20
                                    standard general ledger (SGL).

    July 29, 2009                                                           Business Transformation Agency                                                 Page 270 of 742
                                                   Defense Financial Management Improvement Guidance

            Rule Name              Rule Description                      Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Obligations_4     The system must support the             DoDFMRVol12,Ch5              FFMIA         Mandatory        FV        Record Loans and Grants
                        preparation of a grant agreement        JFMIPSR-00-3,pg18
                        document; its review and approval or JFMIPSR-00-3,pg18
                        rejection by the applicant and the
                        Obligating official; and provide for
                        approval or disapproval of obligations.


Grant_Obligations_5     The system must support the                JFMIPSR-00-3,pg18         FFMIA         Mandatory        FV        Record Loans and Grants
                        processing of approved obligations
                        through the following edit checks:
                        - verify authority of obligating officials
                        - validate grant obligation against edits
                        in the Core Financial
                        System
                        - verify funds availability
                        - validate input data, including the
                        CFDA number
                        - provide controls to prevent a
                        duplicate obligation




Grant_Payments_1        The system must have the ability to        JFMIPSR-00-3,pg21         FFMIA         Mandatory        FV        Record Loans and Grants
                        perform edit checks on payment
                        request for missing data elements,
                        clerical errors, and internal logic. The
                        system must also have the ability to
                        perform non-routine edit checks
                        installed by the Federal awarding
                        agency such as:
                        - verification whether the grantee is
                        delinquent in submitting
                        financial reports
                        - verification of funds availability
                        - controls to prevent processing a
                        duplicate payment.

Grant_Payments_2        The system must be able to flag a          JFMIPSR-00-3,pg21         FFMIA         Mandatory        FV        Record Loans and Grants
                        grantee's account if the grantee is
                        subject to sanctions requiring the
                        withholding of payments.




    July 29, 2009                                                  Business Transformation Agency                                                 Page 271 of 742
                                                     Defense Financial Management Improvement Guidance

            Rule Name                 Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Grant_Payments_3           The system must be able to support       DoDFMRVol12,Ch5           FFMIA         Mandatory        FV        Record Loans and Grants
                           the disbursement of funds to the         JFMIPSR-00-3,pg24
                           grantee's financial institution in
                           addition to posting the transaction to
                           the Standard General Ledger.


Grant_Payments_4           The system must be capable of            JFMIPSR-00-3,pg21         FFMIA         Mandatory        FV        Record Loans and Grants
                           recording the receipt of payment
                           requests from grantees.
Grant_Payments_5           The system must support optional        JFMIPSR-00-3,pg21          FFMIA         Mandatory        FV        Record Loans and Grants
                           data elements in payment request
                           such as:
                           - Grantee Name and Identifier
                           - Amounts Requested
                           - Grantee Official Authorized to Submit
                           Request
                           - Authorized Grantee's Information
                           - Amount of Funds Authorized
                           - Amount Approved
                           - Amount Disallowed
                           - Program Funding Codes
                           - Appropriation Code(s).


Grant_Payments_6           The system must have the ability to      DoDFMRVol12,Ch5           FFMIA         Mandatory        FV        Record Loans and Grants
                           support the review of payment            JFMIPSR-00-3,pg21
                           requests.
Guarantee_Origination_1    A guaranteed loan system must record JFMIPSR-00-01,pg31            FFMIA         Mandatory        FV        Record Loans and Grants
                           the cohort and risk category, as
                           defined in OMB Circular A-34,
                           associated with the guaranteed loan.

Guarantee_Origination_10   A guaranteed loan system must          JFMIPSR-00-01,pg32          FFMIA         Mandatory        FV        Record Loans and Grants
                           provide an automated interface with
                           the Core Financial System to record
                           the outlay of subsidy from the program
                           account.
Guarantee_Origination_11   A guaranteed loan system should            JFMIPSR-00-01,pg32      FFMIA         Value Added      FV        Record Loans and Grants
                           provide the capability for reporting loan-
                           closing information.




    July 29, 2009                                                   Business Transformation Agency                                                 Page 272 of 742
                                                     Defense Financial Management Improvement Guidance

            Rule Name                Rule Description                     Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guarantee_Origination_2   A guaranteed loan system must         JFMIPSR-00-01,pg31            FFMIA         Mandatory        FV        Record Loans and Grants
                          assign a unique account number to the
                          guaranteed loan that remains
                          unchanged throughout the
                          life of the guarantee.
Guarantee_Origination_3   A guaranteed loan system must       JFMIPSR-00-01,pg31              FFMIA         Mandatory        FV        Record Loans and Grants
                          generate a guarantee endorsement to
                          confirm that the loan is guaranteed
                          and transmit it to the lender
                          (electronically where possible).


Guarantee_Origination_4   A guaranteed loan system must          JFMIPSR-00-01,pg31           FFMIA         Mandatory        FV        Record Loans and Grants
                          calculate and record the guarantee
                          origination fee in accordance with the
                          terms and conditions of the guarantee
                          agreement.
Guarantee_Origination_5   A guaranteed loan system should           JFMIPSR-00-01,pg32        FFMIA         Value Added      FV        Record Loans and Grants
                          transmit the origination fee invoice to
                          the lender.
Guarantee_Origination_6   A guaranteed loan system must record JFMIPSR-00-01,pg31             FFMIA         Mandatory        FV        Record Loans and Grants
                          collections of origination fees received.

Guarantee_Origination_7   A guaranteed loan system must             JFMIPSR-00-01,pg31        FFMIA         Mandatory        FV        Record Loans and Grants
                          provide an automated interface with
                          the Core Financial System to record
                          the guaranteed loan commitment, the
                          obligation for the related subsidy, and
                          the origination fee, receivable, and
                          collection.
Guarantee_Origination_8   A guaranteed loan system should           JFMIPSR-00-01,pg32        FFMIA         Value Added      FV        Record Loans and Grants
                          provide the capability to receive
                          electronic transmission of
                          disbursement data by the lender.
Guarantee_Origination_9   A guaranteed loan system must have JFMIPSR-00-01,pg32               FFMIA         Mandatory        FV        Record Loans and Grants
                          the capability to record information on
                          loan disbursements by the lender,
                          including amounts and applicable
                          Treasury interest rates, to support
                          interest computations and subsidy re-
                          estimates, unless specifically excluded
                          by program requirements.




    July 29, 2009                                                   Business Transformation Agency                                                 Page 273 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                         Rule Description                  Primary Reference       Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Accounting_Requir A system must record as a liability the DoDFMRVol12,Ch4,Sub040202B    FFMIA        Mandatory        FV        Record Loans and Grants
ements_1                          present value of estimated net cash     SFFAS2,23
                                  outflows of the outstanding Post- 1991
                                  guaranteed loans. Disclosure is made
                                  of the face value of loans outstanding
                                  and the amount guaranteed.


Guaranteed_Loan_Accounting_Requir A system must record losses and          DoDFMRVol12,Ch4,Sub040202G   FFMIA        Mandatory        FV        Record Loans and Grants
ements_10                         liabilities for loan guarantees          SFFAS2,39
                                  committed before October 1, 1992,
                                  when it is more likely than not that the
                                  loan guarantee will require a future
                                  cash outflow to pay default claims.


Guaranteed_Loan_Accounting_Requir A guaranteed loan system must re-        DoDFMRVol12,Ch4,Sub040202G   FFMIA        Mandatory        FV        Record Loans and Grants
ements_11                         estimate the liability each year as of   SFFAS2,39
                                  the date of the financial statements.

Guaranteed_Loan_Accounting_Requir A guaranteed loan system must record DoDFMRVol12,Ch4,Sub040202J       FFMIA        Mandatory        FV        Record Loans and Grants
ements_12                         modification costs as an expense     SFFAS2,49
                                  when loan guarantees are modified.

Guaranteed_Loan_Accounting_Requir A guaranteed loan system must record DoDFMRVol12,Ch4,Sub040202J       FFMIA        Mandatory        FV        Record Loans and Grants
ements_13                         any difference between the change in SFFAS2,52
                                  liability and the cost of modification of
                                  loan guarantees as a gain or loss.

Guaranteed_Loan_Accounting_Requir A guaranteed loan system must          DoDFMRVol12,Ch4,Sub040202J     FFMIA        Mandatory        FV        Record Loans and Grants
ements_14                         record, for post-1991 loan guarantees, SFFAS2,52
                                  the modification adjustment transfer
                                  paid or received to offset the gain or
                                  loss as a financing source.


Guaranteed_Loan_Accounting_Requir A guaranteed loan system must, for       SFFAS2,55                    FFMIA        Mandatory        FV        Record Loans and Grants
ements_15                         loan sales with recourse, record
                                  estimated potential losses under
                                  guarantee obligations (liabilities) at
                                  their present value.




    July 29, 2009                                                          Business Transformation Agency                                                   Page 274 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference          Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Accounting_Requir A guaranteed loan system must record DoDFMRVol12,Ch4,Sub040202L         FFMIA        Mandatory        FV        Record Loans and Grants
ements_16                         property transferred from borrowers to SFFAS2,57
                                  a federal credit program, through
                                  foreclosure or other means, in partial
                                  or full settlement as compensation for
                                  losses that the government sustained
                                  under post-1991 loan guarantees. The
                                  foreclosed property is an asset
                                  recorded at the present value of
                                  estimated future net cash inflows
                                  discounted at the original discount
                                  rate.


Guaranteed_Loan_Accounting_Requir A guaranteed loan system must           DoDFMRVol12,Ch4,Sub040202L      FFMIA        Mandatory        FV        Record Loans and Grants
ements_17                         recognize acquired loans, through       SFFAS2,59
                                  foreclosure, at the present value of
                                  their estimated net cash inflows from
                                  selling the loans or from collecting
                                  payments from the borrowers,
                                  discounted at the original discount
                                  rate.
Guaranteed_Loan_Accounting_Requir A system must record assets                DoDFMRVol12,Ch4,Sub040202L   FFMIA        Mandatory        FV        Record Loans and Grants
ements_18                         acquired, in full or partial settlement of SFFAS2,60
                                  Post-1991 guaranteed loans, at the
                                  present value of the government's
                                  claim against the borrowers is reduced
                                  by the amount settled as a result of
                                  the foreclosure.


Guaranteed_Loan_Accounting_Requir The system must recognize negative DoDFMRVol4,Ch16,AppA                 FFMIA        Mandatory        FV        Record Loans and Grants
ements_19                         subsidies, when the guaranteed loan is SFFAS18,10
                                  estimated to make a profit apart from
                                  administrative costs, as a direct
                                  reduction in expense, not as revenue,
                                  gain or other financing source.




    July 29, 2009                                                         Business Transformation Agency                                                      Page 275 of 742
                                                           Defense Financial Management Improvement Guidance

            Rule Name                        Rule Description                 Primary Reference          Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Accounting_Requir A system must record a subsidy           DoDFMRVol12,Ch4,Sub040202C   FFMIA        Mandatory        FV        Record Loans and Grants
ements_2                          expense for Post-1991 guaranteed         SFFAS2,24
                                  loans disbursed during a fiscal year.
                                  The amount of the subsidy expense
                                  equals the present value of estimated
                                  cash outflows over the life of the loans
                                  minus the present value of estimated
                                  cash inflows, discounted at the interest
                                  rate of marketable Treasury securities
                                  with a similar maturity term, applicable
                                  to the period during which the loans
                                  are disbursed.




Guaranteed_Loan_Accounting_Requir A system must record the interest    DoDFMRVol12,Ch4,Sub040202C       FFMIA        Mandatory        FV        Record Loans and Grants
ements_20                         subsidy costs of loan guarantees     SFFAS2,26
                                  which equals the present value of
                                  estimated interest supplement
                                  payments.
Guaranteed_Loan_Accounting_Requir A system must record the fees and       DoDFMRVol12,Ch4,Sub040202C    FFMIA        Mandatory        FV        Record Loans and Grants
ements_21                         other collections for a loan guarantee. SFFAS2,28
                                  These costs are recognized as a
                                  deduction for subsidy costs.

Guaranteed_Loan_Accounting_Requir A system must record the Other           DoDFMRVol12,Ch4,Sub040202C   FFMIA        Mandatory        FV        Record Loans and Grants
ements_22                         subsidy costs for a loan guarantee.      SFFAS2,29
                                  These costs consist of cash flows that
                                  are not included in calculating the
                                  interest or default subsidy costs, or in
                                  fees and other collections.




    July 29, 2009                                                      Business Transformation Agency                                                       Page 276 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference       Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Accounting_Requir A system must estimate default costs       DoDFMRVol12,Ch4,Sub040202E   FFMIA        Mandatory        FV        Record Loans and Grants
ements_23                         by: (a) loan performance experience;       SFFAS2,34
                                  (b) current and forecasted                 SFFAS2,35
                                  international, national, or regional
                                  economic conditions that may affect
                                  the performance of the loans; (c)
                                  financial and other relevant
                                  characteristics of borrowers; (d) the
                                  value of collateral to loan balance; (e)
                                  changes in recoverable value of
                                  collateral; and (f) newly developed
                                  events that would affect the
                                  performance of the loan.
                                  Improvements in methods to
                                  reestimate defaults also are
                                  considered.



Guaranteed_Loan_Accounting_Requir A system must use a systematic          DoDFMRVol12,Ch4,Sub040202E      FFMIA        Mandatory        FV        Record Loans and Grants
ements_24                         methodology, such as an econometric SFFAS2,34
                                  model, to project default costs of each SFFAS2,35
                                  risk category. If individual accounts
                                  with significant amounts carry a high
                                  weight in risk exposure, an analysis of
                                  the individual accounts is warranted in
                                  making the default cost estimate for
                                  that category.


Guaranteed_Loan_Accounting_Requir A system must change the existing          DoDFMRVol12,Ch4,Sub040202J   FFMIA        Mandatory        FV        Record Loans and Grants
ements_25                         book value of the liability of modified    SFFAS2,50
                                  post-1991 loan guarantees to an
                                  amount equal to the present value of
                                  net cash outflows projected under the
                                  modified terms from the time of
                                  modification to the maturity of those
                                  loans, discounted at the original
                                  discount rate (the rate that originally is
                                  used to calculate the present value of
                                  the liability when the guaranteed loans
                                  were disbursed).




    July 29, 2009                                                            Business Transformation Agency                                                   Page 277 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference          Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Accounting_Requir A system must modify pre-1992 loan DoDFMRVol12,Ch4,Sub040202J       FFMIA        Mandatory        FV        Record Loans and Grants
ements_26                         guarantees directly. The modified loan SFFAS2,51
                                  guarantee is transferred to a financing
                                  account and the existing book value of
                                  the liability of the modified loan
                                  guarantees is changed to an amount
                                  equal to its post modification liability.
                                  Any subsequent modification is treated
                                  as a modification of a post-1991 loan
                                  guarantee. When a pre-1992 loan
                                  guarantee is indirectly modified, that
                                  loan guarantee is kept in a liquidating
                                  account. The liability of such a loan
                                  guarantee is reassessed and adjusted
                                  to reflect any change in the liability
                                  resulting from the modification.




Guaranteed_Loan_Accounting_Requir A system must record the components DoDFMRVol12,Ch4,Sub040202C      FFMIA        Mandatory        FV        Record Loans and Grants
ements_3                          of the subsidy expense of new loan     SFFAS2,25
                                  guarantees separately among interest
                                  subsidy costs, default costs, fees and
                                  other collections, and other subsidy
                                  costs for the fiscal year during which
                                  new guaranteed loans are disbursed.



Guaranteed_Loan_Accounting_Requir A system must record default costs for DoDFMRVol12,Ch4,Sub040202C   FFMIA        Mandatory        FV        Record Loans and Grants
ements_4                          loan guarantees that result from any   SFFAS2,27
                                  anticipated deviation, other than
                                  prepayments, by the borrowers from
                                  the payment schedule in the loan
                                  contracts.




    July 29, 2009                                                    Business Transformation Agency                                                       Page 278 of 742
                                                         Defense Financial Management Improvement Guidance

           Rule Name                        Rule Description                Primary Reference          Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Accounting_Requir A system must accrue and compound DoDFMRVol12,Ch4,Sub040202D        FFMIA        Mandatory        FV        Record Loans and Grants
ements_5                          interest on loan guarantee liabilities at SFFAS2,31
                                  the interest rate that was originally
                                  used to calculate the present value of
                                  the loan guarantee liabilities when the
                                  guaranteed loans were disbursed.
                                  (The accrued interest is recorded as
                                  interest expense.)


Guaranteed_Loan_Accounting_Requir A system must compute a re-estimate DoDFMRVol12,Ch4,Sub040202D      FFMIA        Mandatory        FV        Record Loans and Grants
ements_6                          of the subsidy cost allowance for loan SFFAS2,32
                                  guarantee liabilities each year as of
                                  the date of the financial statements.
                                  This includes interest rate re-estimates
                                  and technical/default re-estimates and
                                  must take into account all factors that
                                  may have affected the estimate of
                                  each component of the cash flow,
                                  including prepayments, defaults,
                                  delinquencies, and recoveries.



Guaranteed_Loan_Accounting_Requir A system must record any increase or DoDFMRVol12,Ch4,Sub040202D     FFMIA        Mandatory        FV        Record Loans and Grants
ements_7                          decrease in the subsidy cost              SFFAS2,32
                                  allowance or the loan guarantee
                                  liability resulting from the re-estimates
                                  as a subsidy expense (or a reduction
                                  in subsidy expense). The expense
                                  must be recorded for the current
                                  reporting period.


Guaranteed_Loan_Accounting_Requir A system must record interest accrued DoDFMRVol12,Ch4,Sub040202D    FFMIA        Mandatory        FV        Record Loans and Grants
ements_8                          on the liability of loan guarantees as DoDFMRVol12,Ch4,Sub040202F
                                  interest expense.                      SFFAS2,37




    July 29, 2009                                                    Business Transformation Agency                                                       Page 279 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                   Primary Reference      Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Accounting_Requir A system must record costs for           DoDFMRVol12,Ch4,Sub040202F   FFMIA        Mandatory        FV        Record Loans and Grants
ements_9                          administering credit activities, such as SFFAS2,38
                                  salaries, legal fees, and office costs,
                                  that are for credit policy evaluation,
                                  loan and loan guarantee origination,
                                  closing, servicing, monitoring,
                                  maintaining accounting and computer
                                  systems; and other credit
                                  administrative purposes, as
                                  administrative expense.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must            JFMIPSR-00-01,pg52           FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_1               identify delinquent commercial and
                                  consumer accounts for reporting to
                                  credit bureaus (preferably by electronic
                                  interface) by comparing reporting
                                  criteria to delinquent loan data.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have JFMIPSR-00-01,pg53                 FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_10              the capability to provide automated
                                  support to the collection process.
                                  Support could be provided for activities
                                  such as contacting a delinquent
                                  borrower by phone; documenting
                                  contacts with a debtor and the results;
                                  documenting installment payments,
                                  rescheduling agreements, and debt
                                  compromise; generating management
                                  reports; and tracking the performance
                                  of individual agency collectors.




Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg53         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_11              identify accounts eligible for referral to
                                  the Treasury Offset Program (TOP).




    July 29, 2009                                                         Business Transformation Agency                                                    Page 280 of 742
                                                              Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must            JFMIPSR-00-01,pg53          FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_12              generate written notification to the
                                  borrower that includes the following:
                                  - the nature and the amount of the
                                  debt,
                                  - the intention of the agency to collect
                                  the debt through administrative offset,

                                     - an explanation of the rights of the
                                     debtor,
                                     - an offer to provide the debtor an
                                     opportunity to inspect and copy the
                                     records of the agency with respect to
                                     the debt,
                                     -and an offer to enter into a written
                                     repayment with the agency.




Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must             JFMIPSR-00-01,pg53         FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_13              identify, at the end of the notification
                                  period, the debtors that remain
                                  delinquent and are eligible for referral.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must            JFMIPSR-00-01,pg54          FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_14              generate written notices informing the
                                  borrower of the agency's intention to
                                  initiate proceedings to collect the debt
                                  through deduction from pay, the nature
                                  and amount of the debt to be
                                  collected, and the debtors rights.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg54        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_15              update the information store to reflect
                                  TOP status.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must apply JFMIPSR-00-01,pg54               FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_16              collections received through the TOP
                                  process to debtor accounts in
                                  accordance with applicable payments
                                  application rules.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 281 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg54        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_17              interface with the Core Financial
                                  System to record receipts remitted to
                                  the agency.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg54        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_18              compare delinquent account data to
                                  agency's program collection referral
                                  criteria to select delinquent loan
                                  accounts for referral to collection
                                  agencies.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must sort     JFMIPSR-00-01,pg54            FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_19              and group delinquent loan accounts
                                  based on type of debt (consumer or
                                  commercial), age of debt, and location
                                  of debtor.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must           JFMIPSR-00-01,pg52           FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_2               calculate outstanding balances,
                                  including interest, penalties, and
                                  administrative charges and include this
                                  information in credit bureau records.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg54            FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_20              calculate outstanding interest,
                                  penalties, and administrative charges
                                  for each delinquent loan account to be
                                  referred.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg54        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_21              assign selected delinquent loan
                                  account groupings to appropriate
                                  collection agencies based on
                                  collection agency selection criteria for
                                  agency programs.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must        JFMIPSR-00-01,pg54              FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_22              document that the delinquent account
                                  has been referred to a collection
                                  agency.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must         JFMIPSR-00-01,pg55             FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_23              generate and receive electronic
                                  transmissions of account balance data
                                  and status updates to and
                                  from collection agencies.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 282 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must record JFMIPSR-00-01,pg55              FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_24              receipts remitted to the
                                  collection agency and forwarded to the
                                  agency.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg55        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_25              update the acquired loan information
                                  store to reflect receipts, adjustments,
                                  and other status changes, including
                                  rescheduling, compromise, and other
                                  resolution decisions.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg55        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_26              accept and match collection agency
                                  invoices with agency records.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must           JFMIPSR-00-01,pg55           FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_27              request, reconcile, and record returned
                                  accounts from collection agencies.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg55        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_28              interface with the Core Financial
                                  System to record collections
                                  processed through collection
                                  agencies.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg55        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_29              compare delinquent loan account
                                  information against the agency's
                                  litigation referral criteria to identify
                                  delinquent loan accounts eligible for
                                  referral. Support identification of
                                  accounts to be referred to counsel for
                                  filing of proof of claim based on
                                  documentation that a debtor has
                                  declared bankruptcy.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must             JFMIPSR-00-01,pg52         FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_3               generate (or include in demand letters)
                                  a notice to inform the borrower of the
                                  referral of a delinquent debt to a credit
                                  bureau, in accordance with
                                  regulations.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 283 of 742
                                                                Defense Financial Management Improvement Guidance

             Rule Name                           Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg55            FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_30              provide an electronic interface with
                                  credit bureaus to obtain credit bureau
                                  reports that will enable assessment of
                                  the debtor's ability to repay before a
                                  claim is referred to legal counsel.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must            JFMIPSR-00-01,pg55          FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_31              calculate the outstanding balance,       JFMIPSR-00-01,pg55
                                  including principal, interest penalties, JFMIPSR-00-01,pg55
                                  and administrative charges, for each
                                  delinquent loan account to be referred
                                  to legal counsel.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must           JFMIPSR-00-01,pg55           FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_32              generate the Claims Collection
                                  Litigation Report (CCLR). The CCLR is
                                  used to capture collection actions and
                                  current debtor information and transmit
                                  this information to DOJ.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg55            FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_33              receive electronic transmissions of
                                  account data and status updates to
                                  and from DOJ's Central Intake Facility
                                  or the agency's Office of General
                                  Counsel's (OGC) automated system
                                  for referrals.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg55        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_34              update the loan status to reflect
                                  referral for litigation so that the loan
                                  can be excluded from other
                                  collection actions and to alert the
                                  agency to obtain approval from
                                  counsel before accepting voluntary
                                  debtor payment.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must track JFMIPSR-00-01,pg55               FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_35              filing of pleadings and other motions,
                                  including proofs of claims in
                                  bankruptcy to ensure swift legal action
                                  and to monitor litigation activity.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 284 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                 Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must match JFMIPSR-00-01,pg55            FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_36              agency litigation referrals with DOJ
                                  listing of agency litigation referrals.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must record JFMIPSR-00-01,pg55           FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_37              and track recovery of judgment
                                  decisions.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg55         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_38              update the loan information store to
                                  reflect receipts and adjustments.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg55         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_39              interface with the Core Financial
                                  System to record any collections
                                  resulting from litigation.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system should        JFMIPSR-00-01,pg52         FFMIA        Value Added      FV        Record Loans and Grants
ollection_Actions_4               maintain a record of each account
                                  reported to credit bureaus to allow
                                  tracking of referred accounts.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must offset JFMIPSR-00-01,pg53           FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_40              delinquent debts internally before
                                  referral to TOP, where applicable.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg53         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_41              transmit to TOP eligible new debts,
                                  and increase, decrease, or delete
                                  previously reported debts.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must record JFMIPSR-00-01,pg54           FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_42              offset fees in accordance with agency
                                  program requirements.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg54         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_43              update the Core Financial System to
                                  record collections from TOP.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must            JFMIPSR-00-01,pg54       FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_44              process agency refunds given to
                                  borrowers erroneously and offset and
                                  transmit this information to Treasury in
                                  a timely manner.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must record JFMIPSR-00-01,pg54           FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_45              refunds given by Treasury and adjust
                                  the loan information store accordingly.


    July 29, 2009                                                        Business Transformation Agency                                                 Page 285 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference    Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg54         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_46              document that the wage garnishment
                                  order was sent to the employer.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg54         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_47              provide ad hoc reporting capability
                                  needed to monitor the amount
                                  recovered through nonfederal wage
                                  garnishment.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg54         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_48              document that agency provided
                                  debtors a hearing, when requested.

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must apply JFMIPSR-00-01,pg54            FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_49              collections received through wage
                                  garnishment according to agency
                                  application rules.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system should        JFMIPSR-00-01,pg53         FFMIA        Value Added      FV        Record Loans and Grants
ollection_Actions_5               prepare data on appropriate medium,
                                  on a monthly basis, of delinquent
                                  debtors to be included in the CAIVRS
                                  database.
Guaranteed_Loan_Delinquent_Debt_C The system should identify delinquent JFMIPSR-00-01,pg52          FFMIA        Value Added      FV        Record Loans and Grants
ollection_Actions_50              commercial and consumer accounts
                                  for reporting to CAIVRS by comparing
                                  reporting criteria to delinquent loan
                                  data.
Guaranteed_Loan_Delinquent_Debt_C The system should generate (or           JFMIPSR-00-01,pg52       FFMIA        Value Added      FV        Record Loans and Grants
ollection_Actions_51              include in demand letters) a notice to
                                  inform the borrower of the referral of a
                                  delinquent debt to CAIVRS in
                                  accordance with regulations.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must          JFMIPSR-00-01,pg55         FFMIA        Mandatory        FV        Record Loans and Grants
ollection_Actions_52              generate payment to the collection
                                  agency for services rendered through
                                  the core financial system.




    July 29, 2009                                                        Business Transformation Agency                                                 Page 286 of 742
                                                            Defense Financial Management Improvement Guidance

            Rule Name                         Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have      JFMIPSR-00-01,pg56        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_53              the capability to compare delinquent
                                  loan account information to agency
                                  program write-off criteria to select
                                  delinquent loan accounts for possible
                                  loan write-off.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have JFMIPSR-00-01,pg56             FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_54              the capability to classify debtors based
                                  on financial profile and ability to repay.
                                  Indicators of the financial well being of
                                  a debtor include debtor financial
                                  statements, credit bureau reports, and
                                  payment receipt history.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have      JFMIPSR-00-01,pg56        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_55              the capability to produce a CCLR for
                                  each loan account to be referred to
                                  agency counsel or
                                  the (DOJ) for approval of termination
                                  of collection action. The system must
                                  update the loan status to reflect the
                                  referral.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have JFMIPSR-00-01,pg56             FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_56              the capability to update the loan
                                  information store to reflect approval or
                                  disapproval by
                                  agency counsel or the DOJ for
                                  termination of collection action.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have      JFMIPSR-00-01,pg56        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_57              the capability to update the loan
                                  information store and provide an
                                  automated interface with
                                  the Core Financial System to record
                                  the write-off of the receivable.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have      JFMIPSR-00-01,pg57        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_58              the capability to maintain a suspense
                                  file of inactive (written-off) loan
                                  accounts.




    July 29, 2009                                                         Business Transformation Agency                                                 Page 287 of 742
                                                              Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                   Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have         JFMIPSR-00-01,pg57        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_59              the capability to reactivate written-off
                                  loan accounts at a system user's
                                  request if the debtor's financial status
                                  or the account status changes.


Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must              JFMIPSR-00-01,pg53        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_6               generate and transmit dunning letters
                                  to debtors with past-due loan
                                  accounts.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have JFMIPSR-00-01,pg57                FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_60              the capability to compare loan account
                                  data to agency closeout criteria to
                                  identify debtor
                                  accounts eligible for closeout and
                                  1099-C reporting.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have         JFMIPSR-00-01,pg57        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_61              the capability to prepare and send a
                                  Form 1099-C to the IRS if the debtor
                                  has not
                                  responded within the required time
                                  period.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have         JFMIPSR-00-01,pg57        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_62              the capability to update the loan
                                  information store to reflect receipts,
                                  adjustments, and other
                                  status changes, including
                                  rescheduling, compromise, and other
                                  resolution decisions.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have         JFMIPSR-00-01,pg57        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_63              the capability to retain electronic
                                  summary records of closeout account
                                  activity for a period of five years for
                                  use in agency screening of new loan
                                  applications.




    July 29, 2009                                                            Business Transformation Agency                                                 Page 288 of 742
                                                             Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must have       JFMIPSR-00-01,pg58        FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_64              the capability to provide at least the   JFMIPSR-00-01,pg58
                                  following types of management            JFMIPSR-00-01,pg58
                                  information: detailed transaction        JFMIPSR-00-01,pg58
                                  history, standard management             JFMIPSR-00-01,pg58
                                  control/activity, exceptions, trend      JFMIPSR-00-01,pg57
                                  analysis/performance, and collection
                                  contractor compensation.



Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must           JFMIPSR-00-01,pg53         FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_7               identify debtors who do not respond to
                                  dunning letters within a specified time
                                  period.
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must track JFMIPSR-00-01,pg53             FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_8               demand letters and borrower
                                  responses in order to document
                                  borrower due process notification (and
                                  borrower willingness and ability to
                                  repay debt).
Guaranteed_Loan_Delinquent_Debt_C A guaranteed loan system must track JFMIPSR-00-01,pg53             FFMIA         Mandatory        FV        Record Loans and Grants
ollection_Actions_9               and document debtor appeals received
                                  in response to demands for payment.

Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must           JFMIPSR-00-01,pg49        FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_1                 generate payments to property
                                   management contractors for services
                                   rendered.
Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must track, JFMIPSR-00-01,pg49           FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_2                 record, and classify operations and
                                   maintenance expenses related to the
                                   acquired collateral.

Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must           JFMIPSR-00-01,pg49        FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_3                 document rental income and other
                                   collections related to the acquired
                                   collateral.
Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must post      JFMIPSR-00-01,pg49        FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_4                 the expenses and income to the Core
                                   Financial System through an
                                   automated interface.




    July 29, 2009                                                          Business Transformation Agency                                                 Page 289 of 742
                                                               Defense Financial Management Improvement Guidance

             Rule Name                          Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must              JFMIPSR-00-01,pg49        FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_5                 update the acquired loan information
                                   store to record receipts resulting from
                                   the liquidation of acquired collateral
                                   and disposition of the collateral.


Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must              JFMIPSR-00-01,pg49        FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_6                 identify any deficiency balances
                                   remaining for the loan after collateral
                                   liquidation for further collection
                                   activities.
Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must              JFMIPSR-00-01,pg49        FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_7                 provide an automated interface to the
                                   Core Financial System and the
                                   property management system to
                                   record disposal of the property and
                                   associated receipts.
Guaranteed_Loan_Foreclosure_Collat A guaranteed loan system must              JFMIPSR-00-01,pg50        FFMIA         Mandatory        FV        Record Loans and Grants
eral_Liquidation_8                 provide at the least the following types   JFMIPSR-00-01,pg50
                                   of management information:                 JFMIPSR-00-01,pg50
                                   guaranteed loan claim activity,            JFMIPSR-00-01,pg50
                                   summary data of claim losses paid          JFMIPSR-00-01,pg50
                                   out, detailed transaction history,         JFMIPSR-00-01,pg50
                                   standard management control/activity,      JFMIPSR-00-01,pg50
                                   exceptions, portfolio sale historical      JFMIPSR-00-01,pg50
                                   payments, portfolio sales performance,
                                   and collateral management activity
                                   and expense.


Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must                JFMIPSR-00-01,pg48        FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_1                      provide information on collateral for
                                 use in the foreclosure process.
Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must                JFMIPSR-00-01,pg48        FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_2                      update the acquired loan information
                                 store with additional information
                                 obtained during the foreclosure
                                 preparation process, such as recent
                                 appraisal values and property
                                 condition.




    July 29, 2009                                                             Business Transformation Agency                                                 Page 290 of 742
                                                               Defense Financial Management Improvement Guidance

            Rule Name                          Rule Description                  Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must             JFMIPSR-00-01,pg48        FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_3                      calculate outstanding principal,
                                 interest, and penalties, for each loan
                                 with collateral to be foreclosed.

Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must             JFMIPSR-00-01,pg48        FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_4                      provide information to generate a
                                 foreclosure notice to the borrower.

Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must             JFMIPSR-00-01,pg48        FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_5                      transmit information necessary or the
                                 foreclosure to the Department of
                                 Justice and/or agency Office of
                                 General Counsel, as applicable.
Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must record JFMIPSR-00-01,pg48             FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_6                      the results of the foreclosure
                                 proceedings and title conveyance to
                                 the agency.
Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must          JFMIPSR-00-01,pg48           FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_7                      provide an automated interface of data
                                 on acquired collateral to the property
                                 management system for management
                                 and liquidation of the property.


Guaranteed_Loan_Foreclosure_On_C A guaranteed loan system must             JFMIPSR-00-01,pg48        FFMIA         Mandatory        FV        Record Loans and Grants
ollateral_8                      provide an automated interface to the
                                 Core Financial System to record the
                                 value of the property acquired and to
                                 reduce the receivable amount.


Guaranteed_Loan_Maintenance_1        A guaranteed loan system must         JFMIPSR-00-01,pg33        FFMIA         Mandatory        FV        Record Loans and Grants
                                     support reevaluation of the modified
                                     loans in accordance with OMB Circular
                                     A-34 and program policy.

Guaranteed_Loan_Maintenance_10       A guaranteed loan system must         JFMIPSR-00-01,pg33        FFMIA         Mandatory        FV        Record Loans and Grants
                                     provide an automated interface with
                                     the Core Financial System to record
                                     the receipt of guarantee fees from
                                     lenders.
Guaranteed_Loan_Maintenance_11       A guaranteed loan system must         JFMIPSR-00-01,pg34        FFMIA         Mandatory        FV        Record Loans and Grants
                                     identify guaranteed loans requiring
                                     interest supplement payments.

    July 29, 2009                                                          Business Transformation Agency                                                 Page 291 of 742
                                                           Defense Financial Management Improvement Guidance

           Rule Name                       Rule Description                    Primary Reference     Rule Type   Rule Indicator    BEP(s)            BPM Process(es)

Guaranteed_Loan_Maintenance_12   A guaranteed loan system must           JFMIPSR-00-01,pg34        FFMIA         Mandatory        FV        Record Loans and Grants
                                 compare current interest rates to the
                                 interest rates in the agreement to
                                 determine the appropriate