SCOPE OF FINANCIAL SYSTEMS INVENTORY
Agency financial management systems are generally grouped as financial or mixed systems. These groups are defined below.
- collecting, processing, maintaining, transmitting, and reporting data about financial events (A financial event is any occurrence having financial consequences to the Federal government related to the receipt of appropriations or other financial resources; acquisition of goods or services; payments or collections; recognition of guarantees, benefits to be provided, or other potential liabilities; or other reportable financial activities.);
- supporting financial planning or budgeting activities;
- accumulating and reporting cost information; or
- supporting the preparation of financial statements.
A financial system supports the financial functions required to track financial events, provide financial information significant to the financial management of the agency, and/or required for the preparation of financial statements.
A financial system encompasses automated and manual processes, procedures, controls, data, hardware, software and support personnel dedicated to the operation and maintenance of system functions. A financial system may include multiple applications that are integrated through a common database or are electronically interfaced, as necessary, to meet defined data and processing requirements.
The financial management systems inventory covers both financial and mixed systems.
At a minimum, the scope of the agency financial management systems inventory encompasses core financial systems as described in the FSIO Core Financial System Requirements Document and other financial and mixed systems critical to effective agency-wide financial management, financial reporting, or financial control.
The scope of systems to be included in this inventory should be consistent with the financial systems that are included within the Information Technology System Portfolio (Exhibit 53), Capital Asset Plans (Exhibit 300), and Resources for Financial Management Activities (Exhibits 52) of your agency’s A-11 budget submission. OMB is exploring options for consolidating financial system reporting contained in these submissions in the future.
This inventory additionally requires information on the applications within each system.
Applications within a system are the interrelated components of the system designed to support one or more financial functions and feature a common data base, common data element definitions, standardized processing of similar types of transactions, and common version control over software. For example, a payroll system may include applications for time and attendance, labor distribution, and pay computation.