Financial Management Common Core Solution Business · PDF fileFinancial Management Common Core Solution . Business Use Cases. ... Federal Financial Management Business Use Case

Financial Management Common Core Solution Business Use Cases September 30, 2016

2 | P a g e © 2016 The MITRE Corporation – all rights reserved. Federal Government – unlimited usage rights. Version: 09/30/2016 v. 2.0

Table of Contents Purpose ................................................................................................................................................................................... 4

End-to-End Business Processes ............................................................................................................................................... 4

Service Area, Function and Activity Listing ............................................................................................................................. 4

Business Scenarios .................................................................................................................................................................. 4

Business Use Cases.................................................................................................................................................................. 5

Federal Financial Management Inventory of Business Use Cases and Scenarios ................................................................... 5

Federal Financial Management Business Use Case Demonstration Threads ....................................................................... 14

Federal Financial Management Business Use Cases ............................................................................................................. 23

1 Budget Formulation-to-Execution ..................................................................................................................................... 24

1.1 Budget Authority Set-Up ............................................................................................................................................. 24

1.2 Spending Authority from Offsetting Collections (Reimbursables) .............................................................................. 27

1.3 Budget Authority Transfers ......................................................................................................................................... 30

2 Acquire-to-Dispose ............................................................................................................................................................. 33

2.1 Property, Plant, and Equipment (PP&E) Assets .......................................................................................................... 33

2.2 Bulk Purchases ............................................................................................................................................................ 38

2.3 Complex Systems ........................................................................................................................................................ 42

3 Request-to-Procure ............................................................................................................................................................ 48

3.1 Procurement Within a Single Fiscal Year .................................................................................................................... 48

3.2 Procurement Across Fiscal Years Using Multi-Year Funds .......................................................................................... 52

3.3 Single Award from Multiple Purchase Requests ......................................................................................................... 56

4 Procure-to-Pay ................................................................................................................................................................... 59

4.1 Expenditures Within a Single Fiscal Year .................................................................................................................... 59

4.2 Expenditures Across Fiscal Years Using Multi-Year Funds with Invoicing Options ..................................................... 64

4.3 Four-Way Match ......................................................................................................................................................... 74

4.4 Purchase Card ............................................................................................................................................................. 82

5 Bill-to-Collect ...................................................................................................................................................................... 86

5.1 Interest, Penalties, and Collections ............................................................................................................................. 86

5.2 Delinquent Debt Processing ........................................................................................................................................ 91

6 Record-to-Report ............................................................................................................................................................... 96

6.1 Period End Adjustments and Reporting ...................................................................................................................... 96

6.2 Consolidated Financial Statements ............................................................................................................................. 99

7 Agree-to-Reimburse (Reimbursable Management)......................................................................................................... 102

7.1 Federal to Federal Reimbursable Agreement ........................................................................................................... 102


8 Apply-to-Perform (Grants Management) ........................................................................................................................ 107

8.1 Grant with Accrual and Offset .................................................................................................................................. 107

8.2 Administrative Grant Closeout.................................................................................................................................. 112

9 Hire-to-Retire ................................................................................................................................................................... 114

9.1 Post Payroll ............................................................................................................................................................... 114

10 Book-to-Reimburse (Travel) ........................................................................................................................................... 119

10.1 Temporary Duty (TDY) Travel .................................................................................................................................. 119

10.2 Permanent Change of Station ................................................................................................................................. 124

11 Apply-to-Repay .............................................................................................................................................................. 137

11.1 Federal Government Direct Loans Subject to Credit Reform ................................................................................. 137

11.2 Federal Government Guaranteed Loans subject to Credit Reform ........................................................................ 142

Table of Figures Figure 1 Use Case Dependencies .......................................................................................................................................... 14 Figure 2 Use Case Demonstration Threads and End-to-End Processes ................................................................................ 15


Purpose The Federal Financial Management (FFM) Business Use Cases were developed as a tool to improve financial management, regardless of what system and agency user or who is providing the service. The Office of Financial Innovation and Transformation (FIT) initially leveraged the use cases for discussions between designated Federal Shared Service Providers (FSSPs) and prospective customers to better align customer needs with solutions. During the use case development process, stakeholders said that there are broader applications for these documents.

The purpose of this document is to introduce the key components used to develop the FFM Business Use Cases and provide an inventory of the FFM Business Use Cases and associated Business Scenarios developed to date.

End-to-End Business Processes An End-to-End Business Process identifies a start-to-finish outcome required by the business unit customer of mission support services (e.g., a program office). The End-to-End Business Process provides the context for executing financial management services. The list of End-to-End Business Processes used to develop the FFM Business Use Cases are:

1) Budget Formulation-to-Execution 2) Acquire-to-Dispose 3) Request-to-Procure 4) Procure-to-Pay 5) Bill-to-Collect 6) Record-to-Report

7) Agree-to-Reimburse 8) Apply-to-Perform 9) Hire-to-Retire 10) Book-to-Reimburse 11) Apply-to-Repay

Service Area, Function and Activity Listing Service Areas are the administrative and support domains which provide services that enable service customers (e.g., program offices) to deliver on their mission and accomplish End-to-End Business Processes. A Service Function is a further breakdown of an administrative or mission-support Service Area into categories of services provided to service customers. Within a Service Function, Service Activities are the processes that provide identifiable outputs/outcomes to service customers.

Most of the End-to-End Business Processes require integration across multiple Service Areas/Functions/Activities to achieve the business outcome. In addition to Financial Management, the other Services Areas contributing to the completion of each End-to-End Business Process are identified in the Federal Financial Management Inventory of Business Use Cases and Scenarios.

Business Scenarios Business Scenarios identify differing situations or conditions that occur when executing an End-to-End Business Process and reflect the scope and complexity of Federal government agency missions. Business Scenarios also define various business conditions that would cause the FFM solution functionality to be exercised in a different order or with different business information. For example, the Procure-to-Pay Business Scenario for a complex software system is different than for a purchase card. Business Scenarios are categorized as follows:

• Level 1 (L1): Affects most Federal agencies and/or impacts a large transaction volume or dollar value within the Federal government

• Level 2 (L2): Affects multiple Federal agencies and requires some specialized processing from the service consumer or auditor perspective

• Level 3 (L3): Affects a few Federal agencies and requires unique processing, but is mandated by legislation.


Business Use Cases Within an End-to-End Business Process, Business Use Cases are formed by combining Business Scenarios and Service Areas/Functions/Activities. Business Use Cases:

• identify the interactions between Service Areas/Functions/Activities.

• identify the business events to be accomplished and the business information expected to be provided/received/processed.

• are agnostic of whether the events in the Business Use Case are automated, semi-automated or manually accomplished.

Federal Financial Management Inventory of Business Use Cases and Scenarios The list of FFM Business Use Cases developed to date, and the Business Scenarios included in each Business Use Case, are presented in the tables that follow. Also included in the tables is the list of Requested Business Scenarios which have been identified for potential inclusion in future Business Use Cases.

Process 1. Budget Formulation-to-Execution

Service Area(s): Budget Formulation (BFM); Financial Management (FFM) Business Use Cases and Associated Business Scenario(s) 1.1 Budget Authority Set-Up (L1)

• Funds Control at Appropriation, Apportionment, Allotment, Allocation, Suballocation 1, and Suballocation 2 Levels

• Accounting Segments of Treasury Account Symbol/Fund, Organization, Program, Project, and Activity • Discretionary Appropriated Funds • Single Year, Multi-Year, and No Year Appropriations • Program Allocation Exceeding Organization Allotment

1.2 Spending Authority from Offsetting Collections (Reimbursables) (L1)

• Reimbursable Authority • Revolving Funds

1.3 Budget Authority Transfers (L1)

• Appropriation Transfers • Non-Expenditure Transfers

1.4 Special Authorities (L3)

• Special Authority from Off Setting Collections • Donation Revenues, Foreign and Domestic • Borrowing Authority • Contract Authority • Special Limitations from Budget Formulation • Parent-Child Funds Allocation Transfer • Cash Equivalent Transfers • Direct and Guaranteed Loan Authority • Liquidating Accounts

Requested Business Scenarios


• Continuing Resolution • Borrowing Authority


Process 2. Acquire-to-Dispose

Service Area(s): Acquisition (ACQ); Financial Management (FFM); Property Management (PRM) Business Use Cases and Associated Business Scenario(s) 2.1 Property, Plant, and Equipment (PP&E Assets) (L1)

• Acquiring a PP&E Asset • Leasing a PP&E Asset • Depreciation of a PP&E Asset • Disposing of a PP&E Asset • Replacing an Asset

2.2 Bulk Purchases (L1)

• Bulk Purchases • Transfers between Department Components

2.3 Complex Systems (L2)

• Complex Systems • Internal Use Software • Work in Progress • Increase Life and Value of Asset • Enhancing an Asset

2.4 Real Property (L3)

• Heritage Assets • Stewardship Land • Construction in Progress • Capitalization of Labor Costs • Environmental Hazardous Substances on/in Property • Impairment • Construction in Abeyance


• Impairments, Lost/Stolen Items, and Excessed Items • Property Below the Capitalization Threshold • Operating Lease Arrangement • Leasehold Improvements • Bulk Purchase Capitalization Criteria Policies for purchases • Transfer of Funds Between the Warehouse and the Program Office • Bulk Purchases of COTS Software • Multiple Software Package Distribution • Useful Life of Software • Recurring Software Amortization • Software Under Construction • Scientific Equipment Under Construction • Real Property Under Construction • Real Property


Process 3. Request-to-Procure

Service Area(s): Acquisition (ACQ); Financial Management (FFM) Business Use Cases and Associated Business Scenario(s) 3.1 Procurement Within a Single Fiscal Year (L1)

• Single Year Funds 3.2 Procurement Across Fiscal Years Using Multi-Year Funds (L2)

• Multi-Year Funds • Multiple Funding Sources • Multiple Vendors on a Purchase Request

3.3 Single Award from Multiple Purchase Requests (L2) • Single Award from Multiple Purchase Requests


Process 4. Procure-to-Pay

Service Area(s): Acquisition (ACQ); Financial Management (FFM) Business Use Cases and Associated Business Scenario(s) 4.1 Expenditures Within a Single Fiscal Year (L1)

• Invoice into FM Solution • Three-Way Match

4.2 Expenditures Across Fiscal Years Using Multi-Year Funds with Invoicing Options (L2)

• Multi-Year Funds Expenditure • Multiple Funding Sources • Receiving Report Accrual • Credit Memo • Vendor Submits Paper Invoice • Vendor Submits to Program Office • Two-Way Matching • Progress Payment • Final Payment

4.3 Four-Way Matching (L2)

• Four-Way Matching • Prompt Payment

4.4 Purchase Card (L2)

• Purchase Card • Non-Matching

Requested Business Scenarios • Reinstate Paid Delinquent Obligation • Novation • Direct Obligation (not PCard) • Pay and Chase • AP/AR Netting


Process 5. Bill-to-Collect

Service Area(s): Financial Management (FFM); Sales Order and Fulfillment Management (SFM) Business Use Cases and Associated Business Scenario(s) 5.1 Invoicing, Interest, Penalties and Collections (L1)

• Individual Receivable • Disputes • Credit Memo • Interest, Penalties, and Administrative Fees

5.2 Delinquent Debt Processing (L1)

• Insufficient Funds on Debtor’s Payment • Referral to Treasury • Delinquent Collection and Write-off

5.3 Aggregated Receivables for Custodial Revenues (L3)

• Unbilled Collections • Non-Treasury Deposits • Custodial Revenues • Aggregated Receivables

5.4 Receivable Collection from Third Party Debtor (L3)

• Third Party Payers as Responsible Debtors • Unbilled Receivable Allocated Among Multiple Payers • Installment Agreement

Requested Business Scenarios • Collectible by Agency • Expenditure Refunds • Billing for Return of Advance Payments


Process 6. Record-to-Report

Service Area(s): Financial Management (FFM); Property Management (PRM) Business Use Cases and Associated Business Scenario(s) 6.1 Adjustments for Financial Statements (L1)

• Audit Adjustments • Allowance for Uncollectable Amounts • Financial Statements

6.2 Consolidated Financial Statements (L2)

• Liabilities Not Covered by Budgetary Resources • Liabilities Arising from Non-Routine Events • Actuarial Liabilities • Eliminations • Consolidated Financial Statements • Statement of Net Costs

6.3 Supplementary Stewardship Reporting (L3)

• Supplementary Stewardship Reporting

Process 7. Agree-to-Reimburse (Reimbursable Management)

Service Area(s): Financial Management (FFM) Business Use Cases and Associated Business Scenario(s) 7.1 Federal to Federal Reimbursable Agreement (L1)

• Federal to Federal Reimbursable Agreement Modification • Commercial Third Party Service Provider • Adjustment to Agreement Balance

7.2 Reimbursement without Agreement (L3)

• Reimbursement without Agreement 7.3 Reimbursable Agreement with Private Sector with Payments-in-Advance (L3)

• Reimbursable Agreement with Private Sector • Payment-in-Advance • Interest, Penalties, and Administrative Fees • Buy and Sell Transfers between Agencies


Process 8. Apply-to-Perform (Grants and Cooperative Agreements Management)

Service Area(s): Financial Management (FFM); Grants Management (GRM) Business Use Cases and Associated Business Scenario(s) 8.1 Grant with Accrual and Offset (L2)

• Accruals for Grants • Grant Disbursement Offsets

8.2 Administrative Grant Closeout (L2)

• Administrative Grant Closeout 8.3 Cooperative Agreement with Patented Asset (L3)

• Receivables for Assets Resulting from Cooperative Agreements 8.4 Cooperative Agreement with Contingency Funding (L3)

• Tracking Cooperative Agreement Awardee Use of Contingency Funds Requested Business Scenarios

• Reinstate Obligation from ASAP Return • Reinstate Obligation from AR Collection

Process 9. Hire-to-Retire

Service Area(s): Financial Management (FFM); Human Resource Management (HRM) Business Use Cases and Associated Business Scenario(s) 9.1 Post Payroll (L1)

• Domestic Payroll Provider • Payroll Accrual • Employee Receivable Originating Outside of HR


Process 10. Book-to-Reimburse (Travel)

Service Area(s): Financial Management (FFM); Human Resource Management (HRM); Travel and Relocation Management (TRF) Business Use Cases and Associated Business Scenario(s) 10.1 Temporary Duty Travel (TDY) (L1)

• TDY Travel • Travel Card • Split Disbursement

10.2 Permanent Change of Station (PCS) (L2)

• Relocation • Supplemental PCS Voucher

10.3 Travel Sponsored by Non-Government Source (L3)

• Non-Government Source Funds Collection • Advance on Account


• Federal & State Tax Withholding from Employee Disbursements

Process 11. Apply-to-Repay (Loan Management)

Service Area(s): Financial Management (FFM); Loans Management (LNM) Business Use Cases and Associated Business Scenario(s) 11.1 Direct Loan Interest Accrual (L2)

• Disbursement of a Loan • Establishment of Principal Receivable • Interest Accrual • Collection of Interest and Principal

11.2 Government Guaranteed Loan (L2)

• Aggregated Loan Portfolio • Default on Government Guaranteed Loan

11.3 Transition of a Grant to Direct Loan Receivable (L3)

• Default Transition of Grant to Direct Loan Receivable 11.4 Loan Buy Back from Government (L3)

• Buy Backs Requested Business Scenarios

• Subsidy Re-estimation


Federal Financial Management Business Use Case Demonstration Threads This section contains a recommendation for the order in which to execute the FFM Business Use Cases1. Alternative sequences for demonstrating the FFM Business Use Cases can be created by combining the Use Cases in a different order and/or using a subset of the Use Cases. Each Use Case contains a Synopsis and Assumptions that imply dependencies among the Use Cases. These dependencies among the Use Cases are illustrated in Figure 1 below.

Figure 1 Use Case Dependencies

1 This version includes the recommended demonstration sequence for Level 1 and 2 Use Cases.


Based on the Business Use Cases’ Synopsis and the dependencies among Business Use Cases, the Business Use Cases can be organized into Use Case Demonstration Threads. Figure 2 identifies the Demonstration Threads and the End-to-End Business processes that are included in each Demonstration Thread. The figure also illustrates a summary functional relationship and does not imply repeated demonstration of the Budget Formulation-to-Execution Use Cases.

Figure 2 Use Case Demonstration Threads and End-to-End Processes

A summary of each Financial Management Use Case Demonstration Thread is provided below along with the list of relevant Business Scenarios included in each Business Use Case.









Federal Financial Management Business Use Cases The sections below contain the FFM Business Use Cases. The content of the FFM Business Use Case is defined below.

Section 1 of each Business Use Case provides the following information:

a) Use Case Number and Name The Use Case Number correlates to an End-to-End Business Process (e.g., 1.1 Budget Authority Set-up is a Business Use Case under End-to-End Business Process 1 Budget Formulation-to-Execution)

b) End-to-End Business Process Number and Name c) Business Scenario(s) Covered d) Business Actor(s)

There are two categories of business actors, primary and other. Primary business actors are those who execute most of the events. The actors are named in general terms. The actor names in specific agencies or departments may differ. Other business actors are actors that support the primary business actors.

e) Synopsis The Synopsis provides a summary of the events that take place within the Business Use Case.

f) Assumptions and Dependencies These include assumptions about events that have occurred prior to the first event identified in the Use Case or outside of the Use Case and dependencies on events accomplished in other Use Cases. There are a number of common assumptions that are established for all Use Cases. Additional assumptions or dependencies are included if needed for the specific Use Case.

g) Initiating Event The event that triggers the initiation of the Use Case.

Section 2: Typical Flow of Events

This section includes the Federal Financial Management (FFM) and Non-FFM events that may occur to complete the Business Scenario(s) included in the Business Use Case. The non-FFM events are provided for business context. Also included are the inputs and outputs or outcomes that one would expect occur during or as a result of the event.


1 Budget Formulation-to-Execution 1.1 Budget Authority Set-Up End-to-End Business Process: 1 Budget Formulation and Execution Business Scenario(s) Covered • Funds Control at Appropriation, Apportionment, Allotment, Allocation,

Suballocation 1, and Suballocation 2 Levels • Accounting Segments of Treasury Account Symbol/Fund, Organization,

Program, Project, and Activity

• Discretionary Appropriated Funds • Single Year, Multi-Year, and No-Year Appropriations • Program Allocation Exceeding Organization Allotment

Business Actor(s) Primary: Budget Office; Finance Office Other: Office of Management and Budget (OMB); United States Congress (Congress)

Synopsis Single year, multi-year, and no-year funds are included in a Federal agency's discretionary appropriated funds. Apportionments for each fund are requested and received from OMB. A budget operating/spend plan is developed with funds controls at the appropriation, apportionment, allotment, allocation, suballocation 1 and suballocation 2 levels for Treasury accounts/funds, organizations, programs, projects, and activities. A decision is made during budget set up to establish funds control at levels different from those in place for prior years. When implementing the budget operating/spend plan in the financial management system, a program allocation that exceeds an organization's allotment is discovered and brought to the attention of the Budget Office. The over allocation is corrected and no portion of the allotment is posted until the correction is received. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The agency budget has been approved by Congress and OMB without enactment of a continuing resolution. 8. A two-step process is used to receive and process the budget operating/spend plan; the fund control levels and accounting segments are first established,

then appropriation and apportionment information are loaded. 9. The outputs associated with the FFM Event that receive and process the budget operating/spend plan are the inputs required to enter the operating/spend

plan in the financial system. FFMSR ID Reference(s) 1.1.2; 2.1.1; 2.1.2 Initiating Event A Federal agency receives its appropriation warrants.


1.1 Budget Authority Set-Up Typical Flow of Events FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

1 a. Request and receive apportionment for each single year, multi-year, and no-year Treasury Appropriation Fund Symbol (TAFS) (BFM.030.010 Budget Operating/Spend Plan Development)

b. Develop budget operating/spend plan containing organization allotments, program allocations, project suballocations, and activity suballocations (BFM.030.010 Budget Operating/Spend Plan Development)

• Appropriation warrants • OMB-approved apportionments

• Budget operating/spend plan with TAFS appropriation and apportionment information, organization allotment information, program allocation information, project suballocation information, and activity suballocation information

2 Post appropriate budgetary and proprietary entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

• Budget operating/spend plan with TAFS appropriation and apportionment information, organization allotment information, program allocation information, project suballocation information, and activity suballocation information

• Appropriate funds control levels and accounting segments established

• Appropriate appropriation and apportionment funding entries created with reference to source information

• Appropriate allotment funding entries created with reference to source information

• Appropriate allocation and suballocation funding entries created with reference to source information

• Notification one of the program allocations exceeded its organization allotment


1.1 Budget Authority Set-Up Typical Flow of Events FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

3 Revise budget operating/spend plan to correct program allocation exceeding organization allotment (BFM.030.010 Budget Operating/Spend Plan Development)

• Notification one of the program allocations exceeded its organization allotment

• Revised budget operating/spend plan

4 Receive and process revised budget operating/spend plan with correction of program allocation (FFM.010.020 Funds Allocation and Control)

• Revised budget operating/spend plan

• Appropriate allocation and suballocation funding entries created with reference to source information


• GL entries • Appropriate GL accounts updated

1.1 Budget Authority Set-Up Operational Capability Demonstration (OCD) Observations

[Relevant Activity Number(s)] [Observation]


1.2 Spending Authority from Offsetting Collections (Reimbursables) End-to-End Business Process: 1 Budget Formulation and Execution Business Scenario(s) Covered

• Reimbursable Authority • Revolving Funds Business Actor(s) Primary: Budget Office; Finance Office

Other: Office of Management and Budget (OMB); United States Congress (Congress) Synopsis Multiple services are provided by a Federal agency on a reimbursable basis. Approval for a revolving fund and associated budget authority in the form of spending authority from offsetting collections is received by the agency. Anticipated budgetary resources from collections, reimbursements, and other income are apportioned to the agency, and budgetary resources are allotted by the agency to organizations to provide the services. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The agency budget has been approved by Congress and OMB without enactment of a continuing resolution. 8. Approval of the revolving fund is included in the Congressionally approved budget bill and the fund has been established with Treasury. 9. A signed reimbursable agreement is in place that supports the allotment of funding. FFMSR ID Reference(s) 1.1.2; 2.1.1; 2.1.2 Initiating Event A Federal agency receives revolving fund approval and budget authority.


1.2 Spending Authority from Offsetting Collections (Reimbursables) Typical Flow of Events FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

1 a. Request and receive apportionment for revolving fund anticipated budgetary resources from collections, reimbursements, and other income (BFM.030.010 Budget Operating/Spend Plan Development)

b. Develop budget operating/spend plan containing organization allotments (BFM.030.010 Budget Operating/Spend Plan Development)

• Approved revolving fund authority • Approved budget authority • OMB-approved apportionment

• Budget operating/spend plan with revolving fund apportionment information and organization allotment information

2 a. Receive and process budget information and set up the funds control structure, levels, and accounting segments, including TAFS and organization (FFM.010.010 Budget Set-up and Maintenance)

b. Establish spending authority and apportionment funding for revolving fund and allotted funding for organizations (FFM.010.020 Funds Allocation and Control)

• Budget operating/spend plan with revolving fund apportionment information and organization allotment information

• Appropriate funds control levels and accounting segments established

• Appropriate spending authority and apportionment funding entries created with reference to source information

• Appropriate allotment funding entries created with reference to source information




1.2 Spending Authority from Offsetting Collections (Reimbursables)

Operational Capability Demonstration (OCD) Observations



1.3 Budget Authority Transfers End-to-End Business Process: 1 Budget Formulation and Execution Business Scenario(s) Covered

• Appropriation Transfers • Non-Expenditure Transfers Business Actor(s) Primary: Budget Office; Finance Office

Other: Office of Management and Budget (OMB); United States Congress (Congress), Federal Agency Receiving Synopsis Approval to execute two transfers from one of its appropriated funds is requested and received by an agency. These are:

a. An appropriation transfer to another Federal agency to support a mutually beneficial activity (e.g., Department of Energy (DOE) to Environmental Protection Agency (EPA) for a cleanup activity).

b. A non-expenditure transfer to another one of the agency's programs which has its own appropriated funds (e.g., in conjunction with a transfer of an activity from one program which has its own appropriated funds to another program which has its own appropriated funds).

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The agency budget has been approved by Congress and OMB without enactment of a continuing resolution. FFMSR ID Reference(s) 1.1.2; 2.1.2 Initiating Event Federal agency requests transfer of budget authority.

1.3 Budget Authority Transfers Typical Flow of Events

FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s) 1 Receive approval of appropriation

transfer to another agency (BFM.030.020 Budget Operating/Spend Plan Monitoring and Adjustment)

• Appropriation transfer approval • Appropriation transfer information


1.3 Budget Authority Transfers Typical Flow of Events

FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s) 2 Receive and process appropriation

transfer information (FFM.010.020 Fund Allocation and Control)

• Appropriation transfer information • Appropriate appropriation transfer entry created with reference to source information

3 Post appropriate budgetary and proprietary entries to the general ledger (FFM.090.020 General Ledger Posting)


4 Receive approval for non-expenditure transfer from one program's appropriation fund to another program's appropriation fund (BFM.030.020 Budget Operating/Spend Plan Monitoring and Adjustment)

• Non-expenditure transfer approval • Non-expenditure transfer information

5 Receive and process non-expenditure transfer information (FFM.010.020 Fund Allocation and Control)

• Non-expenditure transfer information • Appropriate non-expenditure transfer entries for each program's appropriated fund created with reference to source information




1.3 Budget Authority Transfers




2 Acquire-to-Dispose 2.1 Property, Plant, and Equipment (PP&E) Assets End-to-End Business Process: 2 Acquire-to-Dispose Business Scenario(s) Covered

• Acquiring a PP&E Asset • Leasing a PP&E Asset • Depreciation of a PP&E Asset

• Disposing of a PP&E Asset • Replacing an Asset

Business Actor(s) Primary: Finance Office; Property Management Office Other: Program Office

Synopsis Physical control of new, purchased equipment with an expected 10-year life is acquired by a Federal agency for a 20-year program. Additional costs are incurred to place the new equipment into service. After eight years, it is decided to dispose of the purchased equipment. A capital lease of equipment is implemented to replace the purchased equipment and the leased equipment is operated through the end of the program. Once the agency completes the capital lease of the replacement equipment, retirement and disposal activities for the replaced equipment are performed. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The acquired and leased equipment are procured in a previous Request-to-Procure business process. 8. The acquired and leased equipment are received, accepted and payed for in a previous Procure-to-Pay business process. 9. There is no increase in the value of the purchased equipment during its useful life. 10. The criteria for a capital lease are met. 11. All additional costs, including labor, have been identified, approved and expended. 12. The property record includes all information needed to determine depreciation, including cost, asset class and useful life. 13. The depreciation method is determined by the agency Property Management function. 14. The determination of gains or losses incurred in the disposition of the purchased equipment is determined by the agency's Property Management function. FFMSR ID Reference(s) 1.1.2; 1.1.3 Initiating Event Equipment arrives at the Program Office.


2.1 Property, Plant, and Equipment (PP&E) Assets Typical Flow of Events FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

1 a. Acquire physical control of the equipment, place into service and capture additional costs of placing the property into service (PRM.010.010 Property Acquisition/Receipt)

b. Determine property value and other property information (PRM.010.050 Property Valuation)

c. Establish property records including custodian, location and value (PRM.010.060 Property Control and Accountability)

• Property receipt • Property record

• Property under control • Property value • Depreciation schedule • Property information

2 Receive and process asset information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Property information • Property value

• Appropriate asset information entries created with reference to source information



4 Receive and process asset depreciation information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Property information • Depreciation schedule

• Appropriate asset depreciation entries created with reference to source information





6 a. Complete lease contract for replacement equipment (ACQ.030.070 Contract Award Issuance)

b. Acquire physical control of the equipment, place into service and capture additional costs of placing the property into service (PRM.010.010 Property Acquisition/Receipt)

c. Determine property value and other property information (PRM.010.050 Property Valuation)

d. Establish property records including custodian, location and value (PRM.010.060 Property Control and Accountability)

• Lease terms and conditions • Leased property receipt • Property record

• Signed property lease • Leased property under control • Leased property value • Depreciation schedule • Leased property information • Detailed lease payment schedule


• Leased property information • Leased property value

• Appropriate asset entries created with reference to source information





9 a. Retire and dispose of equipment (PRM.010.040 Property Transfer, Disposal, or Retirement)

b. Capture retirement and disposal costs (PRM.010.040 Property Transfer, Disposal, or Retirement)

c. Determine property gains or losses incurred (PRM.010.040 Property Transfer, Disposal, or Retirement)

d. Update property records with asset retirement and disposal information (PRM.010.060 Property Control and Accountability)

• Property information • Current value of equipment • Retirement and disposal costs

• ID of property retired/disposed • Current net book value of

property retired/disposed • Gains or losses • Property is retired/disposed • Request to record change in asset

information

10 Receive and process request to record change in asset information(FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Request to record change in asset information

• Current net book value of retired property

• Gains or losses

• Appropriate asset adjustment entries created with reference to supporting information




2.1 Property, Plant, and Equipment (PP&E) Assets




2.2 Bulk Purchases End-to-End Business Process: 2 Acquire-to-Dispose Business Scenario(s) Covered

• Bulk Purchases • Transfers between Department Components Business Actor(s) Primary: Department Warehousing Office; Finance Office; Property Management Office

Other: Program Office Synopsis The Federal department uses a warehousing office to manage the acquisition and distribution of bulk purchases across programs. This warehousing office buys property in bulk (e.g., office equipment, emergency equipment) and then holds property for distribution until requested by programs. The warehousing office purchases one lot of property that is held in the warehouse for over a year before transferring it to a program office. The property value and depreciation schedule are recorded when the equipment is originally received. The property book value is periodically reduced to reflect the depreciation. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The property was acquired in a previous Request-to-Procure business process. 8. The property was received, accepted and paid for in a previous Procure-to-Pay business process. 9. The expense of operating the warehouse is not associated with the property transferred to the program office. 10. The property information includes Federal Supply Code and salvage value. 11. The property purchased requires depreciation. 12. The property record includes all information needed to determine depreciation, including cost, asset class, useful life and depreciation method. 13. The determination of depreciation is a Property Management function and will be shown as a non-FFM Event regardless of the office or process used in its

determination. 14. The Program office uses the same FM system as the Department. 15. Depreciation expense is incurred by the office with custodial responsibility. FFMSR ID Reference(s) 1.1.2; 1.1.3 Initiating Event Property arrives at the Federal department warehousing office.


2.2 Bulk Purchases Typical Flow of Events

FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

1 a. Acquire physical control of the property and warehouse (PRM.010.010 Property Acquisition/Receipt)

b. Determine property value and other property information (PRM.010.050 Property Valuation)

c. Establish property records including custodian, location and value (PRM.010.060 Property Control and Accountability)

• Property receipt • Property record

• Property warehoused • Property valuation • Depreciation schedule • Property information

2 Receive and process asset valuation information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Property information • Appropriate asset entries created with reference to source information



4 Receive and process asset depreciation information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Depreciation schedule • Appropriate asset depreciation entries created with reference to source information


2.2 Bulk Purchases Typical Flow of Events




6 a. Process request and transfer property to program office. (PRM.010.040 Property Transfer, Disposal, or Retirement)

b. Update property records including custodian and location (PRM.010.060 Property Control and Accountability)

• Request for property transfer • Updated property information

7 Receive and process updated asset information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Updated property information

• Appropriate asset entries created with reference to source information




2.2 Bulk Purchases




2.3 Complex Systems End-to-End Business Process: 2 Acquire-to-Dispose Business Scenario(s) Covered

• Complex Systems; Internal Use Software • Work in Progress

• Increase Life and Value of Asset • Enhancing an Asset

Business Actor(s) Primary: Office of the CIO; Finance Office; Property Management Office Other:

Synopsis A Federal Agency is developing a complex system (including hardware and internal use software) that is expected to take two years to build. After the complex system is put into operation the hardware is upgraded to extend its life expectancy. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The complex system is being developed by agency in-house personnel for internal use. 8. The expected life of a hardware component purchased in year one is five years. 9. The hardware was procured in a previous Request-to-Procure business process. 10. The hardware was received, accepted and paid for in a previous Procure-to-Pay business process. 11. The base software used in the development of the complex system was procured in a previous Request-to-Procure business process. 12. The base software was received, accepted and paid for in a previous Procure-to-Pay business process. 13. The hardware depreciation schedule begins when the hardware is accepted. 14. The complex system software depreciation schedule begins when the system is placed in to operation. 15. The property information includes property salvage value. 16. When the hardware is upgraded, no original components are removed or retired. 17. The property record includes all information needed to determine depreciation, including cost, asset class, useful life and depreciation method. 18. The determination of depreciation is a Property Management function. 19. The software property record, where available, includes the information needed to determine the value of work in progress. 20. The value of the software work in progress is determined by the agency's Property Management function. FFMSR ID Reference(s) 1.1.2; 1.1.3

Initiating Event The hardware for the development of the complex system is delivered.


2.3 Complex Systems Typical Flow of Events


1 a. Acquire physical control of the hardware (PRM.010.010 Property Acquisition/Receipt)

b. Determine hardware life expectancy, value, and other property information (PRM.010.050 Property Valuation)

c. Establish hardware property information including custodian, location, and value (PRM.010.060 Property Control and Accountability)

• Hardware delivery • Hardware under control • Hardware property value • Hardware depreciation schedule • Hardware property information


• Hardware property information Hardware property value

• Appropriate asset information entries created with reference to source information



4 Receive and process the asset depreciation information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Hardware depreciation schedule • Appropriate asset depreciation entries created with reference to source information






6 a. Assess development and testing progress for internal use software components of the complex system

b. Determine value of the in-progress software components (PRM.010.050 Property Valuation)

c. Update software property information (PRM.010.060 Property Control and Accountability)

• Progress report on development of software component

• Development labor costs for the software components

• Base software costs • Base software property

information

• Value of the in-progress software components

• Updated software property information

7 Receive and process software components valuation information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Value of the in-progress software components

• Appropriate asset adjustment entries created with reference to source information






9 a. Complete software development, testing, and acceptance and place the system into operation (PRM.010.010 Property Acquisition/Receipt)

b. Determine useful life and value of the completed software (PRM.010.050 Property Valuation)

c. Update software property information (PRM.010.060 Property Control and Accountability)

• System development and deployment costs

• Authority to Operate

• Value of the completed internal use software

• Software amortization schedule

10 Receive and process valuation information for completed software (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Value of the completed internal use software

• Appropriate asset adjustment entries created with reference to source information






12 a. Receive and place into service hardware upgrade components (PRM.010.010 Property Acquisition/Receipt)

b. Determine updated life expectancy of base hardware and value of hardware upgrade (PRM.010.050 Property Valuation)

c. Update hardware property information (PRM.010.060 Property Control and Accountability)

• Upgraded hardware information • Base hardware property

information

• Upgraded hardware • Updated value of hardware • Updated hardware property

information

13 Receive and process valuation for hardware (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Updated value of hardware • Appropriate asset adjustment entries created with reference to source information



15 Receive and process the software amortization information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Software amortization schedule • Appropriate software asset amortization entries created with reference to source information




2.3 Complex Systems




3 Request-to-Procure 3.1 Procurement Within a Single Fiscal Year End-to-End Business Process: 3 Request-to-Procure Business Scenario(s) Covered

• Single Year Funds Business Actor(s) Primary: Procurement Office; Finance Office

Other: Vendor Synopsis A request for the purchase of goods (e.g., non-leased office equipment) is submitted using funds that expire at the end of the current fiscal year. A purchase order is prepared and sent to a Vendor.

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. There is sufficient and appropriate time to complete, receive and pay for the purchase of goods. 8. There are sufficient funds to make the purchase. 9. The Agency has purchased from the vendor before and the vendor has already been set up in the FM system. 10. The purchase is made from an approved acquisition schedule. 11. The agency is using commitment accounting. 12. The purchase request includes all necessary information for completing funds control checks. 13. The amount of the approved purchase order is the same as the committed amount. FFMSR ID Reference(s) 1.1.2; 2.1.2; 2.2.1 Initiating Event The Federal agency office requests office furniture.


3.1 Procurement Within a Single Fiscal Year Typical Flow of Events


1 a. Receive and begin processing a purchase request for goods (ACQ.020.010 Procurement Request (PR) Processing)

b. Request funds availability check (ACQ.020.010 Procurement Request (PR) Processing)

• Requirements/specifications for the goods

• Submitted purchase request • Request for funds availability

check

2 Receive and process request for status of funds availability (FFM.010.020 Fund Allocation and Control)

• Request for funds availability check

• Funds availability response

3 Approve purchase request (ACQ.020.010 Procurement Request (PR) Processing)

• Funds availability response • Submitted purchase request

• Approved purchase request

4 Receive approved purchase request and commit funds (FFM.030.020 Obligation Management)

• Approved purchase request • Appropriate commitment entry created with reference to source information






6 a. Develop request for quote (RFQ) (ACQ.020.080 Solicitation Documentation Development)

b. Send RFQ to vendors on the approved acquisition schedule (ACQ.020.100 Solicitation Issuance)

c. Receive vendors’ responses to RFQ and evaluate responses (ACQ.030.010 Proposal Evaluation)

d. Select a vendor (ACQ.030.060 Award Decision)

e. Develop purchase order for that vendor (ACQ.030.070 Contract Award Issuance)

f. Request funds availability check (ACQ.030.070 Contract Award Issuance)

• Approved purchase request • Approved acquisition schedule • Vendor responses to RFQ

• RFQ • Selected vendor • Purchase order information • Request for funds availability

check

7 Receive and process funds availability check (FFM.010.020 Fund Allocation and Control)



8 Approve and issue purchase order (ACQ.030.070 Contract Award Issuance)

• Purchase order information • Funds availability response

• Approved purchase order




9 Receive approved purchase order information, obligate funds, and liquidate commitment (FFM.030.020 Obligation Management)

• Approved purchase order • Appropriate commitment liquidation entries created with reference to source information

• Appropriate obligation entry created with reference to source documentation



3.1 Procurement Within a Single Fiscal Year




3.2 Procurement Across Fiscal Years Using Multi-Year Funds End-to-End Business Process: 3 Request-to-Procure Business Scenario(s) Covered

• Multi-Year Funds • Multiple Funding Sources

• Multiple Vendors on a Purchase Request

Business Actor(s) Procurement Office; Finance Office Other Actor(s) Federal Agencies; Vendors Synopsis A purchase request for development of a complex project is prepared for a Federal program with two funding sources. The project is expected to take two years to complete and to require multi-year funds. To help meet local small business development goals, multiple awards from the one purchase request are issued.

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. There are sufficient funds to make the purchase. 8. The agency is using commitment accounting. 9. The agencies have completed proper acquisition planning steps including the cost estimate. 10. The agencies have obtained the appropriate internal management approvals. 11. The vendors are properly registered in government systems and the relevant payee information has been set up in the FM system. FFMSR ID Reference(s) 1.1.2; 2.1.2; 2.2.1 Initiating Event A purchase request is submitted.


3.2 Procurement Across Fiscal Years Using Multi-Year Funds Typical Flow of Events


1 Receive and validate purchase request with multiple funding sources using multi-year funds (ACQ.020.010 Procurement Request (PR) Processing)

• Information for development project

• Validated purchase request • Request for funds availability

check for each funding source

2 Receive and process request for status of funds availability for each funding source (FFM.010.020 Funds Allocation and Control)

• Request for funds availability check for each funding source

• Funds availability response for each funding source

3 Approve purchase request (ACQ.020.010 Procurement Request (PR) Processing)

• Funds availability response • Validated purchase request

• Approved purchase request

4 Receive approved purchase request information and commit funds (FFM.030.020 Obligation Management)

• Approved purchase request • Appropriate commitment entry is created for each funding source with reference to source information






6 a. Develop Request for Proposal (RFP) (ACQ.020.080 Solicitation Documentation Development)

b. Issue RFP (ACQ.020.100 Solicitation Issuance)

c. Receive and evaluate vendor proposals (ACQ.030.010 Proposal Evaluation)

d. Select multiple vendors (ACQ.030.060 Award Decision)

e. Develop award for each vendor (ACQ.030.070 Contract Award Issuance)


• Approved purchase request • Approved acquisition schedule • Vendor proposals

• RRP • Award information for

multiple vendors • Request for funds availability

check for each funding source

7 Validate funds availability for each funding source (FFM.010.020 Funds Allocation and Control)

• Request for funds availability check for each funding source


8 Request vendor setup with Finance Office (ACQ.030.070 Contract Award Issuance)

• Vendor information • Vendor setup request

9 Receive vendor setup request and establish new vendors (FFM.030.010 Payee Set-up and Maintenance)

• Vendor setup request • Vendors established

10 Approve and issue awards to multiple vendors (ACQ.030.070 Contract Award Issuance)


• Award information for multiple vendors

• Approved award for each vendor




11 Receive approved award information for each vendor and obligate funds and liquidate commitment (FFM.030.020 Obligation Management)

• Approved award for each vendor

• Appropriate commitment liquidation entries created with reference to source information

• Appropriate obligation entries created for each funding source with reference to source information



3.2 Procurement Across Fiscal Years Using Multi-Year Funds




3.3 Single Award from Multiple Purchase Requests Business Scenario(s) Covered

• Single Award from Multiple Purchase Requests Business Actor(s) Primary: Procurement Office; Finance Office

Other: Federal Agency Requestors; Vendor Synopsis Purchase requests from two offices (Requestors) within a Federal agency are submitted to the Procurement Office. Both requests are for the same item. The purchase requests are combined when a single purchase order is issued to a Vendor to fulfill both purchase requests.

Assumptions and Dependencies

1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. There are sufficient funds to make the purchase. 8. The Requestors have obtained the appropriate management approvals. 9. Each Requestor has submitted a purchase request which was approved and an associated commitment for each purchase request has already been

established in the FM system. 10. The Agency has purchased from the vendor before and the vendor has already been set up in the FM system.

The purchase is made from an approved acquisition schedule. 11. The Agency is using commitment accounting. FFMSR ID Reference(s) 1.1.2; 2.1.2; 2.2.1 Initiating Event Two approved purchase requests are determined to be requesting the same item.


3.3 Single Award from Multiple Purchase Requests Typical Flow of Events


1 a. Develop a single request for quote (RFQ) based on two purchase requests (ACQ.020.080 Solicitation Documentation Development)

b. Send RFQ to vendors on the approved acquisition schedule (ACQ.020.100 Solicitation Issuance)

c. Receive vendors’ responses to RFQ and evaluate responses (ACQ.030.010 Proposal Evaluation)

d. Select a vendor (ACQ.030.060 Award Decision)

e. Develop purchase order for that vendor (ACQ.030.070 Contract Award Issuance)


• Approved purchase requests • Approved acquisition schedule • Vendor responses to RFQ

• RFQ • Selected vendor • Purchase order information • Request for funds availability

check




3 Approve and issue purchase order (ACQ.030.070 Contract Award Issuance)

• Funds availability response • Purchase order information

• Approved purchase order


3.3 Single Award from Multiple Purchase Requests Typical Flow of Events


4 Receive approved purchase order information, obligate funds, and liquidate commitment associated with each of the purchase requests (FFM.030.020 Obligation Management)

• Approved purchase order • Appropriate commitment liquidation entries created with reference to source information

• Appropriate obligation entry created with reference to source documentation



3.3 Single Award from Multiple Purchase Requests




4 Procure-to-Pay 4.1 Expenditures Within a Single Fiscal Year End-to-End Business Process: 4 Procure-to-Pay Business Scenario(s) Covered

• Invoice into FM Solution • Three-Way Match Business Actor(s) Primary: Procurement Office; Finance Office

Other: Vendor Synopsis Goods previously ordered by a Federal agency are received and accepted. An invoice is submitted by the Vendor and paid by the agency after performing a three-way match.

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. Agency has purchased from the vendor before and the vendor has been set up in the FM system. 8. A Federal agency has ordered and received the goods and the purchase order obligation has already been established in the FM system. 9. The vendor uses an OMB approved electronic invoicing solution to invoice the agency. 10. The vendor is not on the "Do Not Pay" list. 11. The invoiced amount matches the obligation amount.

FFMSR ID Reference(s) 1.1.2; 1.1.4; 2.1.2; 2.2.1; 2.2.2 Initiating Event The Vendor delivers the goods to the requesting Federal agency.

4.1 Expenditures Within a Single Fiscal Year Typical Flow of Events





1 Receive and accept delivery of vendor's goods (ACQ.040.030 Documentation of Delivery/Acceptance)

• Approved purchase order • Vendor's goods

• Receiving report

2 Receive receiving report information and accrue the expense (FFM.090.030 Accrual and Liability Processing)

• Receiving report • Appropriate accrual liability entry created with reference to source information



4 a. Vendor enters invoice information into an OMB approved electronic invoicing solution

b. Program Office receives notification of vendor invoice submission and reviews and accepts vendor invoice (ACQ.040.030 Documentation of Delivery/Acceptance)

• Vendor invoice • Receiving report • Approved purchase order

• Accepted vendor invoice

5 Receive accepted vendor invoice from OMB approved electronic invoicing solution and perform a three-way match (FFM.030.070 Payment Processing - Commercial Payments)

• Accepted vendor invoice • Receiving report • Approved purchase order

• Successful three-way match • Appropriate payable entry created

with reference to source information

• Appropriate accrual reversal entry created with reference to source information

• Validated vendor invoice




6 Request funds availability check (ACQ.040.030 Documentation of Delivery/Acceptance)

• Validated vendor invoice • Request for funds availability check




8 a. Approve vendor invoice (ACQ.040.030 Documentation of Delivery/Acceptance)

b. Request disbursement (ACQ.040.030 Documentation of Delivery/Acceptance)

• Funds availability response • Validated vendor invoice

• Approved vendor invoice • Request for disbursement




9 a. Receive and process disbursement request (FFM.030.070 Payment Processing - Commercial Payments)

b. Liquidate obligation (FFM.030.020 Obligation Management)

c. Initiate payment (FFM.030.070 Payment Processing - Commercial Payments)

d. Generate disbursement schedule (FFM.030.110 Payment Disbursement)

e. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)

f. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)

• Request for disbursement • Approved vendor invoice

• Appropriate obligation liquidation entry created with reference to source information

• Appropriate payable entry cleared with reference to source information

• Appropriate disbursement entry created with reference to source information

• Certified disbursement schedule • Vendor receives payment • Disbursement confirmation

information




4.1 Expenditures Within a Single Fiscal Year




4.2 Expenditures Across Fiscal Years Using Multi-Year Funds with Invoicing Options End-to-End Business Process: 4 Procure-to-Pay Business Scenario(s) Covered

• Multi-Year Funds Expenditure • Multiple Funding Sources • Receiving Report Accrual • Credit Memo • Vendor Submits Paper Invoice

• Vendor Submits Invoice to Program Office • Two-Way Matching • Progress Payment • Final Payment

Business Actor(s) Primary: Program Office; Finance Office Other: Vendors

Synopsis A purchase request for development of a complex project is prepared by a Federal agency program with two funding sources used. The project is planned to take two years to complete and the program is using multi-year funds. To help meet local small business development goals, three awards were issued from the one purchase request. As work progresses, monthly progress reports are submitted by the vendors and progress is inspected by the agency. Accrued liability is established from the progress reports until invoices are received. One vendor (Vendor 1) is given a waiver to submit paper invoices and the vendor submits it to the Program Office. Electronic invoices are submitted by Vendor 2 and Vendor 3. Invoices are validated using a two-way match. An invoice from Vendor 3 is found not valid by the match, reflecting the agency was billed too much. A credit memo is requested and received from Vendor 3 and the invoice is paid. After the final payments are made to all vendors, the award still has some obligated funds and during award closeout, the remaining funds are de-obligated. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The estimated duration of the project is two years and multi-year funds are used. 8. Some invoices are received in one fiscal year and payment will be due in the next. 9. The contract was awarded to three vendors in a previous Procure-to-Pay use case. 10. The vendors are properly registered in government systems and relevant vendor information has been established in the FM system. 11. The vendors 2 and 3 use an OMB approved electronic invoicing solution to invoice the agency. 12. None of the vendors are on the "Do Not Pay" list. 13. Award closeout includes reviewing final invoices and payments. FFMSR ID Reference(s) 1.1.2; 1.1.4; 2.1.2; 2.2.1; 2.2.2 Initiating Event Work has been completed for each of the awards issued to three vendors from a single purchase request.


4.2 Expenditures Across Fiscal Years Using Multi-Year Funds with Invoicing Options Typical Flow of Events


1 a. Receive and verify three vendor monthly progress reports (ACQ.040.030 Documentation of Delivery/Acceptance)

b. Determine estimated accrual of liability and request liability accrual be recorded (ACQ.040.030 Documentation of Delivery/Acceptance)

• Vendor monthly progress reports • Purchase order • Award information

• Verified vendor monthly progress reports

• Estimated accrual of liability

2 Receive estimated accrual information and accrue liability for progress of each vendor (FFM.090.030 Accrual and Liability Processing)

• Estimated accrual of liability • Appropriate accrual entries created with reference to source information



4 Receive Vendor 1 paper invoice at end of fiscal year and request a two-way match for validation (ACQ.040.030 Documentation of Delivery/Acceptance)

• Vendor 1 paper invoice • Request for two-way match to validate Vendor 1 invoice




5 Receive Vendor 1 invoice and complete a two-way match (FFM.030.070 Payment Processing - Commercial Payments)

• Vendor 1 invoice • Award information • Estimated accrual of liability

• Successful two-way match • Validated Vendor 1 invoice • Appropriate payable entry created


• Appropriate accrual reversal entry created with reference to source information

6 Request multi-year funds availability check (ACQ.040.030 Documentation of Delivery/Acceptance)

• Validated vendor 1 invoice • Request for multi-year funds availability check

7 Receive and process multi-year funds availability check (FFM.010.020 Fund Allocation and Control)

• Request for multi-year funds availability check

• Multi-year funds availability response for vendor 1 invoice

8 Approve Vendor 1 invoice and request disbursement (ACQ.040.030 Documentation of Delivery/Acceptance)

• Multi-year funds availability response

• Validated Vendor 1 invoice

• Request for disbursement




9 a. Receive and process Vendor 1 invoice disbursement request (FFM.030.070 Payment Processing -Commercial Payments)






• Request for disbursement • Appropriate obligation liquidation entry created with reference to source information



• Certified disbursement schedule • Vendor 1 receives payment • Disbursement confirmation

information






11 a. Vendors 2 and 3 enter invoice information into an OMB approved electronic invoicing solution at end of fiscal year

b. Program Office receives notification of vendor invoice submission and reviews and accepts both vendor invoices (ACQ.040.030 Documentation of Delivery/Acceptance)

• Vendor 2 and Vendor 3 invoices • Accepted vendor 2 and Vendor 3 invoices

12 Receive accepted vendor invoices from OMB approved electronic invoicing solution and perform a two-way match for Vendor 2 and Vendor 3 invoices (FFM.030.070 Payment Processing - Commercial Payments)

• Accepted vendor 2 and Vendor 3 invoices

• Award information • Estimated accrual of liability

• Successful two-way match for Vendor 2

• Validated Vendor 2 invoice • Successful two-way match for

Vendor 3 invoice • Appropriate Vendor 2 and Vendor

3 payable entries created with reference to source information

• Appropriate Vendor 2 and Vendor 3 accrual reversal entries created with reference to source information

13 Request multi-year funds availability check for Vendor 2 invoice (ACQ.040.030 Documentation of Delivery/Acceptance)

• Validated Vendor 2 invoice • Unsuccessful two-way match

information for Vendor 3 invoice

• Request for multi-year funds availability check for Vendor 2 and Vendor 3 invoices

• Request credit memo from • Vendor 3

14 Receive and process multi-year funds availability check for Vendor 2 invoice (FFM.010.020 Fund Allocation and Control)

• Request for multi-year funds availability check for Vendor 2 and Vendor 3 invoices

• Multi-year funds availability response for Vendor 2 and Vendor 3 invoices




15 Approve Vendor 2 and Vendor 3 invoices and request disbursement (ACQ.040.030 Documentation of Delivery/Acceptance)

• Multi-year funds availability response for Vendor 2 and Vendor 3 invoices

• Validated Vendor 2 and Vendor 3 invoices


16 a. Receive and process Vendor 2 and Vendor 3 disbursement request (FFM.030.070 Payment Processing - Commercial Payments)


c. Initiate payments (FFM.030.070 Payment Processing -Commercial Payments



f. Receive confirmation of disbursements (FFM.030.120 Payment Confirmation)

• Request for disbursement • Appropriate obligation liquidation entries created with reference to source information

• Appropriate payable entries cleared with reference to source information

• Appropriate disbursement entries created with reference to source information

• Certified disbursement schedule • Vendor 2 and Vendor 3 receives

payment • Disbursement confirmation

information






18 Request processing of Vendor 3 credit memo received in program office, which includes a credit memo (ACQ.040.030 Documentation of Delivery/Acceptance)

• Credit memo from Vendor 3 for accidental overbilling on previous invoice

• Request for processing of Vendor 3 credit memo

19 Receive and process Vendor 3 credit memo (FFM.030.070 Payment Processing - Commercial Payments)

• Request for processing of Vendor 3 credit memo

• Appropriate accrual entry created with reference to source information

• Appropriate Vendor 3 receivable entry created with reference to source information

20 a. Vendors 3 enters invoice information into an OMB approved electronic invoicing solution at end of fiscal year

b. Program Office receives notification of vendor invoice submission and reviews and accepts Vendor 3 invoices (ACQ.040.030 Documentation of Delivery/Acceptance)

• Vendor 3 invoice • Request for processing of Vendor 3 invoice




21 a. Receive and process vendor 3 final invoice (FFM.030.070 Payment Processing - Commercial Payments)

b. Reverse Vendor 3 receivable (FFM.030.060 Public Receivable Credit Memo and Adjustment Processing)

c. Perform two-way match of final vendor 3 invoice (FFM.030.070 Payment Processing - Commercial Payments)

• Vendor 3 invoice • Vendor 3 credit memo information • Award information • Estimated accrual of liability

• Successful two-way match • Validated vendor 3 invoices, as

offset by credit memo • Appropriate vendor 3 payable

entry created with reference to source information

• Appropriate Vendor 3 receivable entry cleared with reference to source information

• Appropriate vendor 3 accrual reversal entry created with reference to source information

22 Request funds availability check for vendor 3 invoice (ACQ.040.030 Documentation of Delivery/Acceptance)

• Validated vendor 3 invoices, as offset by credit memo





24 Approve Vendor 3 final invoice and request disbursement (ACQ.040.030 Documentation of Delivery/Acceptance)

• Funds availability response • Validated Vendor 3 invoice

• Request for disbursement • Approved Vendor 3 invoice






c. Initiate payment (FFM.030.070 Payment Processing -Commercial Payments)







• Certified disbursement schedule • Vendor 3 receives payment • Disbursement confirmation

information



27 Request award closeout (ACQ.040.050 Contract Closeout)

• Award information • Final invoices' information • Confirmed payments

• Award closeout information




28 Receive request for award closeout and clear outstanding obligations and accruals (FFM.090.030 Accrual and Liability Processing)

• Award closeout information • Appropriate obligation liquidation entries created with reference to source information

• Appropriate accrual reversal entries created with reference to source information



4.2 Expenditures Across Fiscal Years Using Multi-Year Funds with Invoicing Options




4.3 Four-Way Match End-to-End Business Process: 4 Procure-to-Pay Business Scenario(s) Covered

• Four-Way Matching • Prompt Payment Business Actor(s) Primary: Procurement Office; Finance Office

Other: Requestors Receiving Office; Vendor Synopsis The Procurement Office has established a single award to a Vendor for goods to fulfill two purchase requests from different offices within the same Federal agency (Requestor). The goods were ordered and delivered to the Federal agency receiving location (Receiving Office) and a receiving report is created. The goods were transferred to the requesting Federal agency offices (Requestors). One of the Requestors (Requestor 1) inspected and accepted only some of the goods; the other Requestor (Requestor 2) accepts all of the goods delivered. The Vendor invoices the agency for the delivered goods. The agency approves for payment based on the Requestors' acceptance reports. The agency makes its payment 5 days after the date the payment was due.

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The contract was awarded to a vendor in a previous Procure-to-Pay use case. 8. The vendor has already been setup in the FM system. 9. The vendor uses an OMB approved electronic invoicing solution to invoice the agency. 10. The vendor submits a valid and proper invoice in compliance with Prompt Pay requirements. 11. The vendor provides Electronic Funds Transfer (EFT) information in compliance with Prompt Pay requirements. 12. The vendor is not on the "Do Not Pay" list. 13. The obligation is liquidated when a payment is made.

FFMSR ID Reference(s) 1.1.2; 1.1.4; 2.1.2; 2.2.1; 2.2.2 Initiating Event The Vendor ships the goods to the Federal Agency Receiving Office.


4.3 Four-Way Match Typical Flow of Events


1 Receive the goods and create a receiving report (ACQ.040.030 Documentation of Delivery/Acceptance)

• Approved purchase order • Vendor's goods

• Receiving report

2 Receive receiving report information and accrue the expense (FFM.090.030 Accrual and Liability Processing)

• Receiving report • Appropriate accrual liability entry created with reference to source information



4 a. Inspect and accept some, but not all, of the goods, return unaccepted goods, and create acceptance report (Requestor 1) (ACQ.040.030 Documentation of Delivery/Acceptance)

b. Inspect and accept all of the goods delivered and create an acceptance report (Requestor 2) (ACQ.040.030 Documentation of Delivery/Acceptance)

• Approved purchase order • Vendor's goods • Receiving report

• Acceptance report (Requestor 1) • Acceptance report (Requestor 2)

5 Receive acceptance reports and adjust the accrued expense (FFM.090.030 Accrual and Liability Processing)

• Acceptance report (Requestor 1) • Acceptance report (Requestor 2)

• Appropriate accrual adjustment entries created with reference to source information






7 a. Vendor enters invoice information into an OMB approved electronic invoicing solution

b. Program Office receives notification of vendor invoice submission and reviews and accepts vendor invoice unaware some of the goods were not accepted (ACQ.040.030 Documentation of Delivery/Acceptance)

• Vendor invoice • Receiving report • Approved purchase order

• Accepted vendor invoice

8 Receive accepted vendor invoice from OMB approved electronic invoicing solution and perform a four-way match of invoice to the award, receiving report, and acceptance reports (FFM.030.070 Payment Processing - Commercial Payments)

• Accepted vendor invoice • Acceptance report (Requestor 1) • Acceptance report (Requestor 2) • Receiving report • Approved purchase order

• Unsuccessful four-way match • Invalidated vendor invoice • Appropriate payable entry created


• Appropriate accrual adjustment entry created with reference to source information




9 a. Program Office requests corrected invoice reflecting results of acceptance reports (ACQ.040.030 Documentation of Delivery/Acceptance)

b. Vendor enters corrected invoice information into an OMB approved electronic invoicing solution

c. Program Office receives notification of vendor invoice submission and reviews and accepts corrected vendor invoice (ACQ.040.030 Documentation of Delivery/Acceptance)

• Accepted vendor invoice • Acceptance report (Requestor 1) • Acceptance report (Requestor 2) • Receiving report

• Request to vendor for corrected invoice

• Accepted corrected vendor invoice

10 Receive accepted vendor invoice from OMB approved electronic invoicing solution and perform a four-way match of corrected invoice to the award, receiving report, and acceptance reports (FFM.030.070 Payment Processing - Commercial Payments)

• Accepted corrected vendor invoice

• Acceptance report (Requestor 1) • Acceptance report (Requestor 2) • Receiving report • Purchase order

• Successful four-way match • Validated corrected vendor

invoice • Appropriate payable entry created


• Appropriate accrual adjustment entry created with reference to source information

11 Request funds availability check (ACQ.040.030 Documentation of Delivery/Acceptance)

• Validated corrected vendor invoice

• Request funds availability check

12 Receive and process funds availability request (FFM.010.020 Fund Allocation and Control)

• Request funds availability check • Funds availability response




13 a. Approve corrected invoice (ACQ.040.030 Documentation of Delivery/Acceptance)

b. Request invoice payment (ACQ.040.030 Documentation of Delivery/Acceptance)

• Funds availability response • Validated corrected vendor

invoice

• Request for invoice payment

14 a. Receive and process invoice payment request (FFM.030.070 Payment Processing - Commercial Payments)






• Request for invoice payment • Appropriate obligation liquidation entry created with reference to source information




information




15 a. Validate that the invoice was proper and paid five days after the due date (ACQ.040.030 Documentation of Delivery/Acceptance)

b. Use current interest calculator to determine interest due (ACQ.040.030 Documentation of Delivery/Acceptance)

c. Request funds availability check (ACQ.040.030 Documentation of Delivery/Acceptance)

• Vendor request for interest payment because invoice payment was received five days after due date

• Federal interest calculator

• Validated claim for 5-day interest payment

• Amount of interest due • Request for funds availability

check

16 a. Receive request for funds availability check (FFM.010.020 Fund Allocation and Control)

b. Record obligation (FFM.030.020 Obligation Management)

c. Record payable (FFM.030.070 Payment Processing - Commercial Payments)

• Amount of interest due • Request for funds availability

check

• Funds availability response • Appropriate obligation entry

created with reference to source information

• Appropriate payable entry created with reference to source information



18 Approve claim for five day interest payment (ACQ.040.030 Documentation of Delivery/Acceptance)

• Funds availability response Validated claim for five day interest payment

• Approved claim for five day interest payment











• Approved claim for 5-day interest payment






information




4.3 Four-Way Match




4.4 Purchase Card End-to-End Business Process: 4 Procure-to-Pay Business Scenario(s) Covered

• Purchase Card • Non-Matching Business Actor(s) Primary: Federal Employee Purchase Card Holder; Finance Office

Other: Vendor; Purchase Card Company Synopsis A request for an item is submitted by a Federal Program Office employee. The item requested is within the threshold of a purchase card so the item is ordered by the Program Office administrative assistant (Federal Employee Purchase Card Holder) from a Vendor's catalog using the purchase card and the item is delivered to the Program Office. The Program Office's purchase card account statement is received by the administrative assistant from the Purchase Card Company, and is reconciled with the Program Office's purchase card receipts without discrepancies. The purchase card account statement is approved by an authorized official in the Program Office for payment and payment is made to the Purchase Card Company. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The Program Office does not require funds be committed or obligated for purchase card purchases. 8. The Program Office administrative assistant is an authorized purchase card holder and has the appropriate delegation of authority to make the purchase. 9. The Vendor does not fall under a blocked merchant category code. 10. The requested item has been ordered and received before the purchase card account statement arrives. 11. The Agency has obligated funds for purchase card transactions.

FFMSR ID Reference(s) 1.1.2; 2.1.2; 2.2.1; 2.2.2 Initiating Event Program Office administrative assistant receives the purchase card account statement.


4.4 Purchase Card Typical Flow of Events FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

1 a. Validate purchase card account statement against receipts (ACQ.050.030 Purchase Card Reconciliation)

b. Request funds availability check (ACQ.050.030 Purchase Card Reconciliation)

• Purchase card account statement • Purchase card receipts

• Validated purchase card account statement (non-matching)


2 Receive and process funds availability check (FFM.010.020 Funds Allocation and Control)



3 Approve purchase card account statement and request payment (ACQ.050.030 Purchase Card Reconciliation)

• Funds availability response • Validated purchase card account

statement

• Approved purchase card account statement

• Request for payment


4.4 Purchase Card Typical Flow of Events FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

4 a. Receive and process approved purchase card account statement (no-way match) (FFM.030.070 Payment Processing - Commercial Payments)






• Approved purchase card account statement

• Request for payment





information




4.4 Purchase Card




5 Bill-to-Collect 5.1 Interest, Penalties, and Collections End-to-End Business Process: 5 Bill-to-Collect Business Scenario(s) Covered

• Individual Receivables • Disputes

• Credit Memo • Interest, Penalties, and Administrative Fees

Business Actor(s) Primary: Finance Office Other: Customer (non-government)

Synopsis A private sector entity (Customer) is billed by a Federal agency for goods or services provided by the agency. The quality of some of the goods is disputed and the disputed goods returned. The invoice is not paid on time causing interest, penalties, and administrative costs to be incurred and a dunning notice to be sent. The dispute is resolved by issuing a credit memo to the Customer and waiving the penalties. The balance due plus interest on the undisputed goods is paid.

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The Federal agency has already recorded the sales order for the goods in their ordering system and the goods have been shipped. 8. The invoice is generated from an external system and electronically sent to the FM system, and the invoice date is the date it is sent. 9. The Federal agency does not refund the administrative costs. 10. The customer finds some of the goods acceptable, but pays for none and does not issue a dispute until after receipt of a dunning notice. 11. The Federal agency is executing the deposit activities. FFMSR ID Reference(s) 1.1.2; 1.1.5; 2.2.4; 2.2.5; 2.2.6 Initiating Event Goods are ordered from a Federal Government Agency.


5.1 Interest, Penalties, and Collections Typical Flow of Events


1 Receive sales order for goods (SFM.010.010 Sales Order Intake)

• Sales order • Payer information

2 Establish non-Federal payer information (FFM.060.010 Payer Set-up and Maintenance)

• Payer information • Established FM system payer

3 Release for sales order fulfillment, track status, and generate sales order invoice (SFM.010.020 Sales Order Processing)

• Sales order • Invoice

4 a. Receive and process invoice, and set-up public receivable (FFM.060.020 Public Receivable Set-up and Invoicing)

b. Recognize earned revenue (FFM.040.010 Revenue Processing)

• Invoice • Appropriate receivable entry created with reference to source information

• Appropriate revenue recognition entry created with reference to source information






6 a. Monitor age of receivable (FFM.070.010 Delinquent Debt Collection)

b. Accrue interest, penalties, and administrative costs (FFM.070.010 Delinquent Debt Collection)

c. Generate and send dunning notice for delinquent debt (FFM.070.010 Delinquent Debt Collection)

• Aged receivable • Terms of sales order • Administrative cost information

• Dunning notice • Debt status and notice of

customer rights • Appropriate receivable entries


• Appropriate revenue recognition entries created with reference to source information

• Receivable balance and accrued interest and penalties information provided to sales order management



8 Produce and provide public receivable report (FFM.060.050 Public Receivable and Collection Reporting)

• Status of the receivable • Receivable and collection status information

9 a. Receive return of disputed goods and record invoice dispute for quality of goods provided against original sales order (SFM.010.020 Sales Order Processing)

b. Resolve dispute by waiving penalties, adjusting interest, and generating an adjusted invoice (SFM.010.020 Sales Order Processing)

• Dispute information • Returned goods • Receivable balance and accrued

interest and penalties information

• Dispute record associated with original sales order

• Adjusted invoice • Request for credit memo




10 a. Create and apply credit memo against initial receivable, waive penalty, adjust interest, and adjust receivable (FFM.060.030 Public Receivable Credit Memo and Adjustment Processing)

b. Adjust revenue per credit memo (FFM.040.010 Revenue Processing)

• Request for credit memo • Adjusted invoice

• Credit Memo • Appropriate receivable

adjustment entries created with reference to source information

• Appropriate revenue adjustment entries created with reference to source information



12 Receive and process collection referencing established principal and interest receivables, and deposit payment (FFM.060.040 Public Receipt Processing)

• Payment received • Appropriate receipt and deposit entries created with reference to source information

• Appropriate receivable adjustment entry created with reference to source information




5.1 Interest, Penalties, and Collections




5.2 Delinquent Debt Processing End-to-End Business Process: 5 Bill-to-Collect Business Scenario(s) Covered

• Insufficient Funds on Debtor’s Payment • Referral to Treasury

• Delinquent Collection and Write-off

Business Actor(s) Primary: Finance Office, Federal Entity Selling Goods/Services to the Public Other: Private Sector Customer

Synopsis A Federal agency good or service was purchased and paid via check. After the good or service was provided, the Customer's check was returned for insufficient funds. An invoice is generated that includes administrative costs and interest. The invoice and receivable are not paid and age sufficiently to refer to Treasury for collection. Because the Customer is no longer in business, the delinquent debt is written-off. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The Federal Agency selling the goods/services processed the sale and the original check payment through their sales order and fulfillment system. 8. The terms of the sales order included assessment of administrative costs for returned checks and interest for unpaid invoices. 9. The payer has been established in the FM system. FFMSR ID Reference(s) 1.1.2; 1.1.5; 2.2.4; 2.2.5; 2.2.6

Initiating Event The Customer's check is returned for insufficient funds.


5.2 Delinquent Debt Processing Typical Flow of Events


1 a. Receive and process notice of insufficient funds (FFM.060.040 Public Receipt Processing)

b. Request original sales order and terms of sale if available (FFM.060.020 Public Receivable Set-up and Invoicing)

• Notice from Treasury • Appropriate receipt reversal entry created with reference to source information

• Appropriate receivable adjustment entries created with reference to source information

• Request for sales order and terms of sale



3 Provide original sales order and terms of sale (SFM.010.020 Sales Order Processing)

• Request for sales order and terms of sale

• Original sales order and terms of sale




4 a. Receive original sales order and terms of sale if available and establish receivable for administrative costs, penalty, and interest (FFM.060.020 Public Receivable Set-up and Invoicing)

b. Recognize revenue for administrative costs, penalty, and interest (FFM.040.010 Revenue Processing)

c. Invoice for original order amount, administrative costs, penalty, and interest (FFM.060.020 Public Receivable Set-up and Invoicing)

• Original sales order and terms of sale

• Invoice that includes original order amount, administrative costs, and interest

• Appropriate receivable entries created with reference to source information




6 a. Monitor age of receivable and accrue additional interest; Generate and send dunning notice for delinquent debt (FFM.070.010 Delinquent Debt Collection)

b. Recognize revenue for interest (FFM.040.010 Revenue Processing)

• Aged receivable • Terms of sales order

• Dunning notice • Appropriate receivable entry








8 a. Monitor age of receivable and accrue additional interest; Refer debt to Treasury for collection (FFM.070.010 Delinquent Debt Collection)

b. Recognize revenue for interest (FFM.040.010 Revenue Processing)

• Aged receivable • Terms of sales order

• Referral to Treasury for collection • Appropriate receivable entry





10 Determine status of debt and request write-off of uncollected amount (SFM.010.020 Sales Order Processing)

• Debtor information • Debtor status information • Write-off request

11 Receive request to write-off uncollected amount with debtor status information; write off and close out receivable (FFM.070.020 Delinquent Debt Write-off and Close-out)

• Aged receivable • Write-off request







13 Generate Treasury Report on Receivables (TROR) (FFM.070.030 Delinquent Debt Reporting)

• GL account balances • TROR

5.2 Delinquent Debt Processing




6 Record-to-Report 6.1 Period End Adjustments and Reporting End-to-End Business Process: 6 Record-to-Report Business Scenario(s) Covered

• Audit Adjustments • Allowance for Uncollectable Amounts

• Financial Statements

Business Actor(s) Primary: Finance Office; Program Offices Other:

Synopsis Overvaluation of an agency’s real property assets is revealed by an audit finding and corrections are required in the current fiscal year (FY “n”). In this instance for example, routine maintenance expenses were incorrectly charged to the asset account. Appropriate valuations and associated adjustments are determined by the agency. As the FY "n" nears its end, the allowance for uncollectible amounts is updated. The corrections are made in FY "n". Finally, financial statements for FY "n" are produced by the agency. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The agency processes and calculations are in place for determining the appropriate allowances for uncollectible amounts. 8. The agency's records contain the financial management and supporting information required to produce its financial statements.

FFMSR ID Reference(s) 1.1.2; 1.1.3; 1.1.4; 1.1.5; 1.3.1; 2.3.2 Initiating Event The agency receives its audit findings for the previous fiscal year.

6.1 Period End Adjustments and Reporting Typical Flow of Events FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)

1 Determine the correct value for the assets noted in the audit findings (PRM.010.050 Property Valuation)

• Audit findings • Corrected asset valuations



2 Receive and process valuations of noted assets (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)

• Corrected asset valuations • Appropriate asset adjustment entries created with reference to source information

• Appropriate expense adjustment entry created with reference to source information



4 Determine allowance for uncollectible amounts (FFM.070.010 Delinquent Debt Collection)

• Established receivable and delinquent debt information

• Historical receivable collection and delinquent debt collection and write-off information

• Allowance for uncollectible amounts information

5 Receive and process the allowance for uncollectable amounts (FFM.090.030 Accrual and Liability Processing)

• Allowance for uncollectable amounts information

• Appropriate allowance entries created with reference to source information



7 Generate required Treasury reports including GTAS (FFM.110.010 Treasury Reporting)

• GL account balances • Supporting Treasury reports

information

• Treasury reports

8 Generate OMB-required Prompt Pay and Electronic Funds Transfer (EFT) reports (FFM.030.130 Payment Reporting)

• GL account balances • Supporting payables and

disbursement information

• Prompt Pay and EFT reports



9 Generate property, plant, and equipment (PP&E) asset reports (FFM.020.060 Financial Asset Reporting)

• GL account balances • Supporting property management

information

• PP&E reports

10 Generate receivable and collection reports (FFM.060.050 Public Receivable and Collection Reporting)

• GL account balances • Supporting receivable and

collection information

• Receivable and collection reports

11 Generate delinquent debt reports (FFM.070.030 Delinquent Debt Reporting)

• GL account balances • Supporting delinquent debt

information

• Delinquent debt reports

12 Generate revenue reports (FFM.040.020 Revenue Reporting)

• GL account balances • Supporting revenue information

• Revenue reports

13 Generate the financial statements for FY "n" (FFM.110.020 Financial Statement Preparation)

• FY "n" annual financial information

• FY "n" financial statements

6.1 Period End Adjustments and Reporting




6.2 Consolidated Financial Statements End-to-End Business Process: 6 Record-to-Report Business Scenario(s) Covered

• Liabilities Not Covered by Budgetary Resources • Liabilities Arising from Non-Routine Events • Actuarial Liabilities

• Eliminations • Consolidated Financial Statements • Statement of Net Costs

Business Actor(s) Primary: Finance Office; Program Offices Other:

Synopsis Consolidated financial statements must be produced for a Department with two component agencies. Because the Department collects revenues, the Statement of Net Cost must also be produced. Adjusting entries are required for liabilities not covered by budgetary resources. Those liabilities not covered by budgetary resources include liabilities incurred for which revenues or other sources of funds necessary to pay the liabilities have not been made available through congressional appropriations or current earnings of the reporting entity (e.g., judgement fund notices, legal settlements). Adjusting entries are also needed for liabilities arising from non-routine events and actuarial liabilities. Before producing the consolidated financial statements, intra-departmental eliminations must be performed. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. Independent financial records are maintained by the Department and each of its component agencies. 8. There exist property transfers and reimbursable agreement transactions in the covered fiscal year between department components and between the

Department and its components. 9. The component agencies financial statements have been produced and provided to the Department. FFMSR ID Reference(s) 1.1.2; 1.1.3; 1.1.4; 1.1.5; 1.2.1; 1.3.1; 2.3.2 Initiating Event The fiscal year closes.


6.2 Consolidated Financial Statements Typical Flow of Events


1 Determine program total liabilities not covered by budgetary resources and request consolidation at the Department level

• GL account balances • Program information

• Total liabilities not covered by budgetary resources information

• Text for financial statement footnotes

2 Receive and process total liabilities not covered by budgetary resources and provide department-wide information (FFM.090.030 Accrual and Liability Processing)

• Total liabilities not covered by budgetary resources information

• Appropriate liability adjustment entries created with reference to source information

3 Determine program total liabilities arising from non-routine events and request consolidation at the Department level


• Total liabilities arising from non-routine events information


4 Receive and process liabilities arising from non-routine events and provide department-wide information (FFM.090.030 Accrual and Liability Processing)

• Total liabilities arising from non-routine events information


5 Determine program total actuarial liabilities and request consolidation at the Department level


• Total actuarial liabilities information


6 Receive and process total actuarial liabilities and provide department-wide information (FFM.090.030 Accrual and Liability Processing)

• Total actuarial liabilities information





6.2 Consolidated Financial Statements Typical Flow of Events


8 Generate department component financial statements (FFM.110.020 Financial Statement Preparation)

• GL account balances • Text for financial statement

footnotes

• Department component financial statements

9 Determine eliminations required for department consolidated financial statements (FFM.110.020 Financial Statement Preparation)

• Department component financial statements

• Appropriate elimination adjustment entries created with reference to source information



11 Generate department consolidated financial statements, including Statement of Net Costs (FFM.110.020 Financial Statement Preparation)

• GL account balances • Text for financial statement

footnotes

• Department consolidated financial statements, including Statement of Net Costs

6.2 Consolidated Financial Statements




7 Agree-to-Reimburse (Reimbursable Management) 7.1 Federal to Federal Reimbursable Agreement End-to-End Business Process: 7 Agree-to-Reimburse (Reimbursable Management) Business Scenario(s) Covered

• Federal to Federal Reimbursable Agreement Modification • Commercial Third Party Service Provider

• Adjustment to Agreement Balance

Business Actor(s) Primary: Finance Office, Federal Agency Seller Other: Federal Agency Buyer; Commercial Service Vendor

Synopsis A reimbursable agreement to perform a service with another Federal agency (Federal Agency Buyer) is established. The work under the agreement is partially performed by a Commercial Service Vendor. Costs are accumulated from the Federal Agency Seller's resources and invoices from the Commercial Service Vendor and are included in bills to the Federal Agency Buyer. After the initial agreement has been signed, modifications to the agreement are negotiated between the Federal Agency Seller and Buyer resulting in a lower price. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. There is no payment in advance because it is a Federal to Federal reimbursable agreement. 8. The Federal Agency Seller is operating under the Economy Act. 9. A contract with the Commercial Service Vendor has already been established and the Commercial Service Vendor has already invoiced the Federal Agency

Seller. 10. The procurement payment processing for contractor resources includes posting costs to cost pools (e.g., projects). 11. The payroll processing for government resources includes posting costs to cost pools (e.g., projects). 12. The Federal Agency Seller bills and collects from the Federal Agency Buyer through the Intra-Governmental Payment and Collection (IPAC) System. 13. The initial receivable is completely paid by the first payment. FFMSR ID Reference(s) 1.1.2; 1.1.5; 1.2.1; 2.2.4; 2.2.5; 2.2.6 Initiating Event Federal Agency Seller and Federal Agency Buyer negotiate terms for a reimbursable agreement.


7.1 Federal to Federal Reimbursable Agreement Typical Flow of Events


1 Establish Federal payer information (FFM.060.010 Payer Set-up and Maintenance)

• Payer information • Established FM system payer

2 Establish a reimbursable agreement (FFM.050.010 Reimbursable Agreement Set-up and Maintenance)

• Reimbursable agreement terms • Reimbursable agreement

3 Establish cost pools/objects (e.g., projects) to accumulate costs (FFM.080.010 Cost Management Set-up and Maintenance)

• Reimbursable agreement • Established FM system cost pools/objects (e.g., projects)

4 a. Incur service costs by performing services

b. Calculate and provide service usage metrics needed to allocate accumulated costs to Federal Agency Buyer

• Reimbursable agreement terms • Internal and vendor service costs • Service usage information

• Accumulated service costs • Service usage metrics

5 Determine allocation of accumulated costs to Federal Agency Buyer (FFM.080.020 Cost Accumulation and Allocation)

• Service usage metrics • Service costs allocated to Federal Agency Buyer

6 a. Generate service invoice, generate IPAC bill, and set up receivable (FFM.050.030 Reimbursable Invoicing)

b. Recognize earned revenue for services provided (FFM.040.010 Revenue Processing)

• Service costs allocated to Federal Agency Buyer

• Service invoice • Appropriate receivable entry








8 Request interagency collection • Collection instructions • Funds transferred to seller 9 a. Establish IPAC collection

(FFM.030.030 Payment Processing - Intragovernmental Payments)

b. Receive and process interagency collection information (FFM.050.040 Reimbursable Receipt Processing)

• Notification of interagency payment receipt

• IPAC collection entry • Appropriate receipt entries





11 Complete negotiations to modify existing reimbursable agreement

• Existing reimbursable agreement terms

• Service invoice • Service usage metrics

• Modified reimbursable agreement terms

12 Update reimbursable agreement (FFM.050.010 Reimbursable Agreement Set-up and Maintenance)

• Modified reimbursable agreement terms

• Modified reimbursable agreement

13 a. Incur additional service costs by continuing to perform services

b. Calculate and provide service usage metrics needed to allocate accumulated costs to Federal Agency Buyer

• Reimbursable agreement terms Internal and vendor service costs

• Service usage information

• Accumulated service costs • Service usage metrics




14 Determine allocation of accumulated costs to Federal Agency Buyer (FFM.080.020 Cost Accumulation and Allocation)

• Service usage metrics • Service costs allocated to Federal Agency Buyer

15 a. Generate service invoice reflecting additional costs and agreement adjustments, generate IPAC bill, and establish receivable (FFM.050.030 Reimbursable Invoicing)

b. Recognize earned revenue for services provided (FFM.040.010 Revenue Processing)

• Modified reimbursable agreement • Service costs allocated to buyer

• Service invoice • IPAC bill entry • Appropriate receivable entries





17 Request interagency collection • Collection instructions • Funds transferred to seller 18 a. Establish IPAC collection

(FFM.030.030 Payment Processing - Intragovernmental Payments)

b. Receive and process interagency collection information (FFM.050.040 Reimbursable Receipt Processing)

• Notification of interagency payment receipt

• IPAC collection entry • Appropriate receipt entries








20 Analyze and report on reimbursable costs, receivables and receipts (FFM.050.070 Reimbursable Reporting)

• GL account balances • Earned unbilled information for trading partners

• Reimbursable cost, receivable, and receipt reports

7.1 Federal to Federal Reimbursable Agreement




8 Apply-to-Perform (Grants Management) 8.1 Grant with Accrual and Offset End-to-End Business Process: 8 Apply-to-Perform (Grants Management) Business Scenario(s) Covered

• Accruals for Grants • Grant Disbursement Offsets Business Actor(s) Primary: Program Office; Finance Office

Other: Grantee Synopsis A competitive (or discretionary) grant is awarded by a Federal agency by the Grantee. The Grantee was overpaid for a previous grant from the same grant program. The awarded grant is a significant percentage of the grant program budget. The Grantee's progress is monitored and progress reports are received. The Grantee submits an invoice to request payment. Disbursement is made with a partial offset to cover the previous overpayment. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. Funds have been committed for the grants program. 8. The agency has and uses a process for estimating accrual liability amounts. 9. The Grantee has had grants with the Federal agency and is setup in the FM system. 10. Grant transactions are provided to the FM system on a per grant basis (i.e., not aggregated across grants). 11. The Grantee sends invoices to the program office and does not receive any payments in advance. 12. The overpayment from a previous grant was drawn from the same fund as the newly awarded grant and an associated receivable has been established. FFMSR ID Reference(s) 1.1.2; 1.1.4; 2.1.2; 2.2.1; 2.2.2 Initiating Event A Federal agency selects a Grantee for a competitive (or discretionary) grant.


8.1 Grant with Accrual and Offset Typical Flow of Events


1 a. Perform grant funding analysis and estimate grant accrual liability (GRM.020.010 Grant Funding Analysis)

b. Prepare grant award documentation (GRM.020.020 Grant Award Issuance and Modification)

c. Request funds availability check (GRM.020.020 Grant Award Issuance and Modification)

• Grantee information • Grant award decision information • Agency historical data and

informed opinion

• Estimated grant accrual liability information

• Grant award information • Request for funds availability

check




3 Approve and issue grant award (GRM.020.020 Grant Award Issuance and Modification)

• Funds availability response • Grant award information

• Approved grant award information

4 a. Receive grant award information, liquidate grant program commitment, and obligate funds for grant award (FFM.030.020 Obligation Management)

b. Process estimated grant accrual liability (FFM.090.030 Accrual and Liability Processing)

• Approved grant award information

• Estimated grant accrual liability information

• Appropriate commitment liquidation entry with reference to source information

• Appropriate obligation entry with reference to source information

• Appropriate accrual liability entry created with reference to source information




6 Receive grant progress report and determine grant accrual liability adjustment (GRM.030.010 Grant Performance Review)

• Grant progress report • Estimate of Grantee expenses

incurred but not yet invoiced

• Grant accrual liability adjustment information

7 Receive and process grant accrual liability adjustment information (FFM.090.030 Accrual and Liability Processing)

• Grant accrual liability adjustment information

• Appropriate accrual liability adjustment entry made with reference to supporting information



9 a. Receive and review Grantee invoice (payment request) (GRM.020.030 Grant Disbursement Processing)

b. Determine adjusted disbursement amount due to previous overpayment (payable offset) (GRM.020.030 Grant Disbursement Processing)

c. Request funds availability check (GRM.020.030 Grant Disbursement Processing)

• Grantee invoice • Grantee award history

information

• Grant payable offset information • Request for funds availability

check





11 Approve Grantee invoice and request grant disbursement for adjusted amount (GRM.020.030 Grant Disbursement Processing)

• Funds availability response • Grantee invoice

• Approved Grantee invoice • Request for disbursement

12 a. Receive approved Grantee invoice and process grant accrual liability adjustment (FFM.030.080 Payment Processing - Grant Payments)

b. Receive grant payable offset information and process receivable adjustment (FFM.060.030 Public Receivable Credit Memo and Adjustment Processing)

c. Receive and process disbursement request (FFM.030.080 Payment Processing - Grant Payments)

d. Liquidate obligation (FFM.030.020 Obligation Management)

e. Generate disbursement schedule (FFM.030.110 Payment Disbursement)

f. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)

g. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)

• Approved Grantee invoice • Grant payable offset information • Request for disbursement

• Appropriate accrual liability adjustment entry created with reference to source information




• Certified disbursement schedule • Grantee receives payment • Disbursement confirmation

information




8.1 Grant with Accrual and Offset




8.2 Administrative Grant Closeout End-to-End Business Process: 8 Apply-to-Perform (Grants Management) Business Scenario(s) Covered

• Administrative Grant Closeout Business Actor(s) Primary: Program Office; Finance Office

Other: Grantee Synopsis An accrual liability for a previously awarded grant is established by a Federal agency. An expected progress report and invoice are not received by the agency. The grantee is determined to be no longer operating and the grant is administratively closed. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. No illegal activity occurred against the terms of the grant agreement. 8. The grantee has been paid for all work that has been invoiced. 9. The grantee has received no payments to which it was not entitled. 10. No commitments or obligations have been made for future fiscal years. FFMSR ID Reference(s) 1.1.2; 1.1.4; 2.2.1 Initiating Event Agency learns the grantee is no longer operating.

8.2 Administrative Grant Closeout Typical Flow of Events


1 Verify grant outstanding accrual liability and remaining obligation amounts and initiate grant administrative close out (GRM.040.010 Grant Award Closeout)

• Grantee status information • Grant outstanding accrual liability amount

• Grant administrative closeout information


8.2 Administrative Grant Closeout Typical Flow of Events


2 a. Receive grant award closeout information and reverse estimated accrual liability (FFM.090.030 Accrual and Liability Processing)

b. Deobligate grant remaining obligated balance (FFM.030.020 Obligation Management)

• Grant outstanding accrual liability amount

• Grant administrative closeout information

• Appropriate accrual liability adjustment entry created with reference to source information

• Appropriate deobligation entries created with reference to source information


• GL Entries • Appropriate GL accounts updated

8.2 Administrative Grant Closeout




9 Hire-to-Retire 9.1 Post Payroll End-to-End Business Process: 9 Hire-to-Retire Business Scenario(s) Covered

• Domestic Payroll Provider • Payroll Accrual

• Employee Receivable Originating Outside of HR

Business Actor(s) Primary: Finance Office; Payroll Provider Other: HR Office

Synopsis An agency's accounting period is ending during a two week pay period. The preceding pay period has been paid and posted within this accounting period. Earned but unpaid employee wage and benefit expenses for the remaining days of the current accounting period are estimated and posted before the accounting period closes. For the pay period that is now ending, the agency's payroll service provider receives time and attendance information and information on an employee receivable originating outside of Human Resources. Employee wages and benefits are calculated and net employee pay is disbursed. Upon receipt of the payroll processing summary from the payroll service provider, the accrued payroll expense posted in the prior accounting period is reversed and the actual payroll expenses are posted. The agency's cash account is charged directly by the payroll service provider for the payroll related disbursements.

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. A common Federal shared services payroll provider (e.g., USDA NFC, GSA, Interior IBC, DFAS, and DoS) handles the agency's payroll. 8. The agency's payroll is calculated for two week intervals with an average of 26 pay periods in a fiscal year. 9. The agency's pay date is the first Thursday or Friday of the following pay period. 10. An employee receivable for an active employee has previously been established in the financial management system and will be reported to the payroll

service provider for collection.

FFMSR ID Reference(s) 1.1.2; 1.1.4; 1.2.1; 2.2.1; 2.2.2; 2.2.5 Initiating Event The close of the current accounting period approaches.


9.1 Post Payroll Typical Flow of Events


1 Determine the estimate of the earned but unpaid wage and benefit expenses for the accounting period nearing close (HRM.050.010 Compensation Management)

• Historical wage and benefit information

• Estimated wage expenses • Estimated benefit expenses

2 Receive and process wage and benefit expense accrual (FFM.090.030 Accrual and Liability Processing)

• Estimated wage expenses • Estimated benefit expenses

• Appropriate payroll expense accrual entries created with reference to source information






4 a. Receive employee time and attendance information (HRM.050.010 Compensation Management)

b. Calculate employee wage and benefit amounts (HRM.050.010 Compensation Management)

c. Receive employee receivable information and determine offset with wage earnings (HRM.050.010 Compensation Management)

d. Disburse employee wages and benefits (HRM.050.010 Compensation Management)

e. Request employee receivable reduction by amount of payroll offset (HRM.050.010 Compensation Management)

f. Summarize and report employee wage and benefit expense and disbursement information by accounting period (HRM.050.010 Compensation Management)

• Time and attendance information • Employee benefit information • Employee receivable information

• Wage expense, benefit expense, benefit accrual, and disbursement information by employee

• Employee receivable information • Employee payroll offset

information • Wage and benefit expense and

disbursement information summarized by accounting period

5 Reverse estimated wage and benefit expense accrual posted in the prior accounting period (FFM.090.030 Accrual and Liability Processing)

• Appropriate payroll expense accrual entries created for the prior period

• Appropriate payroll expense accrual reversal entries created with reference to source information




6 a. Receive and process summarized wage and benefit expense and disbursement information for prior accounting period and current accounting period (FFM.030.040 Payment Processing - Payroll Payments)

b. Receive and process request to reduce employee receivable by amount of payroll offset (FFM.060.030 Public Receivable Credit Memo and Adjustment Processing)

• Wage and benefit expense and disbursement information summarized by accounting period

• Employee receivable information • Employee payroll offset

information

• Appropriate prior-period wage and benefit expense entries created with reference to source information

• Appropriate prior-period benefit accrual entries created with reference to source information

• Appropriate current-period wage and benefit expense entries created with reference to source information

• Appropriate current-period benefit accrual entries created with reference to source information






9.1 Post Payroll




10 Book-to-Reimburse (Travel) 10.1 Temporary Duty (TDY) Travel End-to-End Business Process: 10 Book-to-Reimburse (Travel) Business Scenario(s) Covered

• TDY Travel • Travel Card

• Split Disbursement

Business Actor(s) Primary: Travel Office; Finance Office Other: Program Offices

Synopsis An employee is directed to travel to a customer site to complete an assignment. A TDY travel authorization request is submitted by the employee and approved by their supervisor. Appropriate TDY expenses are paid using the employee's travel card. A split disbursement is issued paying the travel card company directly for authorized TDY charges made by the employee and paying the employee for part of the TDY travel expenses.

Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. Travel has been requested by the Program Office financing the trip and approved by the employee's manager. 8. The employee has a travel card and is in good standing with the card company. 9. The travel request has been approved by the Program Office. 10. The Program Office does not require funds be committed prior to or for the travel request. 11. The obligation amount is sufficient to cover the TDY travel expenses. 12. The payee record for the travel card company and the employee are already established in the system. 13. Any necessary local travel expenses are included in the TDY travel request and subsequent TDY travel voucher. FFMSR ID Reference(s) 1.1.2; 2.1.2; 2.2.1; 2.2.2 Initiating Event Traveler submits a TDY travel request.


10.1 Temporary Duty (TDY) Travel Typical Flow of Events


1 a. Receive and validate TDY travel request (TRF.010.020 Travel Authorization Processing)

b. Request funds availability check (TRF.010.020 Travel Authorization Processing)

• TDY travel request • Validated TDY request • Request for funds availability

check




3 Approve TDY request (TRF.010.020 Travel Authorization Processing)

• Validated TDY request • Funds availability response

• Approved TDY request

4 Receive TDY request and obligate funds (FFM.030.020 Obligation Management)

• Approved TDY request • Funds availability response

• Appropriate obligation entry created with reference to source information



6 a. Receive, process and audit TDY travel expense vouchers (TRF.010.040 Travel Voucher Processing and Audit)

b. Request funds availability check (TRF.010.040 Travel Voucher Processing and Audit)

• TDY travel expense vouchers • Audited TDY travel voucher • Request for funds availability

check







8 a. Approve TDY travel voucher (TRF.010.040 Travel Voucher Processing and Audit)

b. Determine disbursement split between credit card company and employee (TRF.010.040 Travel Voucher Processing and Audit)

c. Request disbursement to credit card company and employee (TRF.010.040 Travel Voucher Processing and Audit)

• Funds availability response • Audited TDY travel voucher

• Approved TDY travel voucher • Request for disbursement to

credit card company • Request for disbursement to

employee




9 a. Receive and process disbursement request to credit card company (FFM.030.070 Payment Processing - Commercial Payments)

b. Receive and process disbursement request to employee (FFM.030.050 Payment Processing - Travel TDY and Local Payments)

c. Liquidate obligation (FFM.030.020 Obligation Management)

d. Initiate payment to credit card company (FFM.030.070 Payment Processing - Commercial Payments)

e. Initiate payment to employee (FFM.030.050 Payment Processing - Travel TDY and Local Payments)

f. Generate disbursement schedule (FFM.030.110 Payment Disbursement)

g. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)

h. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)

• Request for disbursement to credit card company

• Request for disbursement to employee




• Certified disbursement schedule • Credit card company receives

payment • Employee receives payment • Disbursement confirmation

information






10.1 Temporary Duty (TDY) Travel




10.2 Permanent Change of Station End-to-End Business Process: 10 Book-to-Reimburse Business Scenario(s) Covered

• Relocation • Supplemental PCS Voucher Business Actor(s) Primary: Travel Office; Finance Office

Other: Synopsis An employee is moved as a permanent change of station (PCS). Taxable reimbursements to the employee are processed directly by the Finance Office instead of the Payroll Office. An advance is received for expenses that will be incurred. Approximately two months after PCS is complete, receipts for expenses not included in the employee's final expense voucher are found and a supplemental PCS voucher is filed to recover them. Assumptions and Dependencies 1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The PCS has been approved by receiving agency and funds have been committed for the amount of the expected expenses and gross-up to cover employee

tax withholdings. 8. The PCS authorization and PCS advance are received at the same time and processed independently, but are obligated simultaneously. 9. The PCS advance requested by the employee is within allowable limits. 10. Processing invoices from and payments to commercial companies for services related to purchasing the new home, sells the existing home, and moving

household goods are handled by separate Procure-to-Pay business processes. 11. Funding and other information on the supplemental PCS voucher is valid and comprehensive. 12. The supplemental PCS voucher does not include items subject to tax withholding. 13. The activities within this use case occur within a single fiscal year. 14. The employee has a government charge card and is in good standing with the card company. 15. PCS expenses exceed amount of PCS advance. FFMSR ID Reference(s) 1.1.2; 1.1.5; 2.1.1; 2.1.2; 2.2.1; 2.2.2; 2.2.4 Initiating Event The Travel Office receives a PCS authorization request, including a request for a PCS advance.


10.2 Permanent Change of Station Typical Flow of Events


1 a. Verify PCS authorization conforms to policy and request funds availability check (TRF.020.020 Relocation Authorization Processing)

b. Verify PCS advance request conforms to policy and request funds availability check (TRF.020.030 Relocation Advance Processing)

• PCS authorization request • PCS advance request

• Verified PCS authorization request • Verified PCS advance request • Request for funds availability

check

2 Receive and process request for funds availability check for PCS authorization and advance (FFM.010.020 Fund Allocation and Control)

• Funds availability request • Funds availability response

3 a. Approve PCS authorization request (TRF.020.020 Relocation Authorization Processing)

b. Approve PCS advance request (TRF.020.030 Relocation Advance Processing)

c. Request PCS advance disbursement (TRF.020.030 Relocation Advance Processing)

• Funds availability response • Verified PCS authorization request • Verified PCS advance request

• Approved PCS authorization request

• Approved PCS advance request • Request for PCS advance

disbursement




4 a. Receive and process the approved PCS authorization and the advance authorization, and obligate funds for the total expected expense (FFM.030.020 Obligation Management)

b. Establish PCS advance payable (FFM.030.060 Payment Processing - Travel PCS Payments)


• Approved PCS advance request

• Appropriate obligation entry created with reference to source information

• Appropriate PCS advance payable entry created with reference to source information

• Appropriate prepaid expense entry created with reference to source information

5 a. Receive and process PCS advance disbursement request (FFM.030.060 Payment Processing -Travel PCS Payments)

b. Initiate PCS advance payment (FFM.030.060 Payment Processing - Travel PCS Payments)

c. Generate disbursement schedule (FFM.030.110 Payment Disbursement)

d. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)

e. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)

• Request for advance disbursement



• Certified disbursement schedule • Employee receives payment • Disbursement confirmation

information






7 a. Receive, audit and validate employee PCS voucher indicating PCS is complete and a PCS advance was applied (TRF.020.040 Relocation Voucher Processing and Audit)

b. Determine gross-up amount and tax withholding amounts (TRF.020.040 Relocation Voucher Processing and Audit)

c. Offset proposed disbursement by advance amount and withholding amounts (TRF.020.040 Relocation Voucher Processing and Audit)

d. Request funds availability check (TRF.020.040 Relocation Voucher Processing and Audit)


• PCS voucher and receipts • PCS advance information •

• Validated employee PCS voucher • Gross up and tax withholding

amounts • Disbursement offset by advance

and withholding amounts • Request for funds availability

check

8 Receive and process request for funds availability check (FFM.010.020 Fund Allocation and Control)






9 a. Approve the PCS voucher (TRF.020.040 Relocation Voucher Processing and Audit)

b. Request accrual of tax withholding liability (TRF.020.040 Relocation Voucher Processing and Audit)

c. Request PCS voucher disbursement (TRF.020.040 Relocation Voucher Processing and Audit)

• Funds availability response • Validated employee PCS voucher • Gross up and tax withholding

amounts • Disbursement offset by

withholding amounts

• Approved PCS voucher • Request to accrue tax withholding

liability • Request for disbursement of PCS

voucher offset by withholding amounts

10 Receive and process request to accrue tax withholding liability (FFM.090.030 Accrual and Liability Processing)

• Request to accrue tax withholding liability

• Appropriate accrual entry created with reference to source information




11 a. Receive and process PCS voucher disbursement request (FFM.030.060 Payment Processing -Travel PCS Payments)

b. Liquidate obligation and deobligate unused PCS authorization funds (FFM.030.020 Obligation Management)

c. Liquidate advance (FFM.090.030 Accrual and Liability Processing)

d. Initiate payment (FFM.030.060 Payment Processing - Travel PCS Payments)

e. Generate disbursement schedule (FFM.030.110 Payment Disbursement)

f. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)

g. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)

• Request for disbursement of PCS voucher offset by advance


• Appropriate deobligation entry created with reference to source information

• Appropriate prepaid expense liquidation entry created with reference to source information




information






13 a. Receive, audit and validate delayed supplemental PCS voucher and amend the PCS authorization (TRF.020.040 Relocation Voucher Processing and Audit)

b. Request funds availability check (TRF.020.040 Relocation Voucher Processing and Audit)

• PCS authorization • Previous PCS voucher • Supplemental PCS voucher

• Updated PCS authorization • Validated supplemental PCS

voucher • Request for availability check


• Funds availability request • Funds availability response

15 Receive and process the updated PCS authorization and establish payable for supplemental PCS voucher (FFM.030.060 Payment Processing - Travel PCS Payments)

• Funds availability response • Updated PCS authorization • Validated supplemental PCS

voucher

• Appropriate payable entry created with reference to source information

16 a. Approve supplemental PCS voucher (TRF.020.040 Relocation Voucher Processing and Audit)

b. Request disbursement for supplemental PCS voucher (TRF.020.040 Relocation Voucher Processing and Audit)

• Validated supplemental PCS voucher

• Approved supplemental PCS voucher

• Request for supplemental PCS voucher disbursement




17 a. Receive and process supplemental PCS voucher disbursement request (FFM.030.060 Payment Processing -Travel PCS Payments)

b. Initiate payment (FFM.030.060 Payment Processing - Travel PCS Payments)

c. Generate disbursement schedule (FFM.030.110 Payment Disbursement)

d. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)

e. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)

• Request for supplemental PCS voucher disbursement




information






19 a. File applicable state employer returns based on state filing status (HRM.050.010 Compensation Management)

b. Reconcile state tax accruals and request payable to state revenue department (HRM.050.010 Compensation Management)

c. File applicable Federal employer return based on Federal filing status (HRM.050.010 Compensation Management)

d. Reconcile federal tax accruals request payable to Federal tax authority (HRM.050.010 Compensation Management)

e. Request funds availability check (HRM.050.010 Compensation Management)

• PCS authorization, advance, and voucher information

• State employer tax return • State tax accrual information • Request for payable to state

revenue department • Federal employer tax return • Federal tax accrual information • Request for payable to Federal tax

authority • Request for funds availability

check







21 a. Establish payables for state tax withholdings (FFM.030.100 Payment Processing - Other Payments (State, Foreign, and Miscellaneous Payments)

b. Establish payables for Federal tax withholdings (FFM.030.030 Payment Processing - Intragovernmental Payments)

• State employer tax return • Request for payable to state

revenue department • Federal employer tax return • Request for payable to Federal tax

authority

• Appropriate payable entries created with reference to source information

22 a. Approve state and Federal tax payments (HRM.050.010 Compensation Management)

b. Request disbursement of Federal and State tax payments (HRM.050.010 Compensation Management)

• Funds availability response • State employer tax return • Federal employer tax return

• Approved state tax payment • Approved Federal tax payment • Request for state tax

disbursement • Request for Federal tax

intragovernmental payment




23 a. Receive and process disbursement request for state tax payment (FFM.030.100 Payment Processing - Other Payments (State, Foreign, and Miscellaneous Payments))


c. Initiate state tax payment (FFM.030.030 Payment Processing - Intragovernmental Payments)




• Request for state tax disbursement




• Certified disbursement schedule • State tax authority receives

payment • Disbursement confirmation

information




24 a. Receive and process request for Federal tax intragovernmental payment (FFM.030.030 Payment Processing - Intragovernmental Payments)


c. Initiate Federal tax intragovernmental payment (FFM.030.030 Payment Processing - Intragovernmental Payments)

• Request for Federal tax intragovernmental payment




• Federal tax authority receives payment




10.2 Permanent Change of Station




11 Apply-to-Repay 11.1 Federal Government Direct Loans Subject to Credit Reform End-to-End Business Process: 11 Apply-to-Repay Business Scenario(s) Covered

• Disbursement of a Loan • Establishment of Principal Receivable

• Interest Accrual • Collection of Interest and Principal

Business Actor(s) Primary: Finance Office, Federal Agency Lender Other: Non-Federal Borrower (e.g., a small business)

Synopsis A Federal Agency makes an unsecured direct loan to a Non-Federal Borrower. The Federal Agency disburses the loan, accrues interest and collects principal and interest from the Non-Federal Borrower. The Federal Agency provides loan-related information and reports and issues the Non-Federal Borrower a 1098 for the amount of interest paid on the loan, if applicable. Assumptions and Dependencies

1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The loan approval and loan documentation contain the terms and conditions of the principal, interest, and late payment fees. 8. The Borrower has already been set up in the FM system. 9. The loan transactions are provided to the FM System on a per loan basis. 10. The Borrower's loan repayments are processed through a Treasury central service (e.g., lockbox or online payment system). 11. The loan is subject to the Federal Credit Reform Act. 12. The Federal Agency has received borrowing authority to cover the loan. 13. The Federal Agency has already calculated loan value, subsidy cost and administrative expense. 14. The Federal Agency has received appropriated funds for initial subsidy cost and administrative expense. 15. The periodic subsidy re-estimate activity and FM impacts are performed by a different business process. 16. The Federal Agency has already borrowed the necessary funding from Treasury or Federal Financing Bank. 17. The Federal Agency has already obligated the funds for the loan program including the obligation for the subsidy expense. 18. Money borrowed to cover the loan and the subsidy expense are already in the financing account. FFMSR ID Reference(s) 1.1.2; 1.1.3; 1.1.4; 1.1.5; 2.1.1; 2.1.2; 2.2.1; 2.2.2; 2.2.4; 2.2.5; 2.2.6 Initiating Event A Federal Agency disburses a direct loan to a Non-Federal Borrower.


11.1 Federal Government Direct Loans Subject to Credit Reform Typical Flow of Events


1 a. Execute loan documents and calculate the loan disbursement amount (LNM.020.030 Loan Closing)

b. Request funds availability check (LNM.020.030 Loan Closing)

• Approved and validated loan application

• Loan disbursement information, outstanding principal balance and repayment terms





3 a. Approve loan (LNM.020.030 Loan Closing)

b. Request disbursement (LNM.020.030 Loan Closing)

• Funds availability response • Validated loan application





4 a. Receive and process loan payment request (FFM.030.090 Payment Processing - Loan Payments)


c. Initiate payment (FFM.030.090 Payment Processing - Loan Payments)







• Certified disbursement schedule • Borrower receives payment • Disbursement confirmation

information



6 a. Request recording of loan asset information (LNM.020.030 Loan Closing)

b. Request recurring entry for principle and interest receivables (LNM.020.030 Loan Closing)

• Loan amortization schedule • Request for recording of loan asset

• Request for principle and interest receivable recurring entry




7 a. Receive and process request for recording of loan asset information (FFM.020.020 Financial Asset Information Processing - Loans)

b. Receive and process request for recurring entry to invoice principle and interest payments. (FFM.060.020 Public Receivable Set-up and Invoicing)

c. Issue invoice for loan payment (FFM.060.020 Public Receivable Set-up and Invoicing)

d. Accrue interest (FFM.090.030 Accrual and Liability Processing)

• Request for recording of loan asset

• Request for principle and interest receivable recurring entry

• Loan amortization schedule

• Appropriate loan asset entry created with reference to source information


• Appropriate interest accrual entry with reference to source information



9 a. Receive loan payment (LNM.030.010 Loan Servicing)

b. Request processing of loan payment (LNM.030.010 Loan Servicing)

• Loan payment information • Request for processing of loan payment




10 a. Receive and process request for processing of loan payment (FFM.060.020 Public Receivable Set-up and Invoicing

b. Recognize revenue for interest payments, as earned (FFM.040.010 Revenue Processing)

c. Reverse interest liability accrual (FFM.040.010 Revenue Processing)

• Request for processing of loan payment

• Loan payment information

• Appropriate receivable entry cleared with reference to source information

• Appropriate revenue entry created with reference to source information

• Appropriate liability accrual reversal entry created with reference to source information



12 Generate report of loan payments received (FFM.060.050 Public Receivable and Collection Reporting)

• Loan payment receipt information • Reports on loan payments including Form 1098

11.1 Federal Government Direct Loans Subject to Credit Reform




11.2 Federal Government Guaranteed Loans subject to Credit Reform End-to-End Business Process: 11 Apply-to-Repay Business Scenario(s) Covered

• Aggregated Loan Portfolio • Default on Government Guaranteed Loan Business Actor(s) Primary: Finance Office, Federal Agency

Other: Lender, Borrower Synopsis Loans made to private sector borrowers (Borrower) by a private sector lender (Lender) are guaranteed by a Federal agency (Guarantor). One guaranteed loan is subsequently found to be in default. A guaranteed loan default claim is filed with the Federal agency and a default claim payment is made to the Lender. The Borrower's pledged asset is foreclosed on, and is purchased at the foreclosure sale and pledged as collateral for the Federal Agency guarantee of the portfolio. The difference between the value of the asset and the guarantee outlay is not collected from the Borrower after a failed attempt by the Guarantor. The debt is referred to the Treasury for collection. Assumptions and Dependencies

1. There may or may not be automated (near/real-time or batch) interfaces between the financial management system and other systems. 2. There is no presumption in the activities as to which activities are executed by which actor. 3. Supporting information for General Ledger transactions includes sub-ledger entries when sub-ledgers are used. 4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string. 5. Relationships between use cases are found in the Framework for Common Core Solution Use Cases document. 6. All predecessor activities required to trigger the Initiating Event have been completed. 7. The Lender is in good standing under the laws of its state of origination, an approved lender qualified to issue Federal guaranteed loans, and is not in default

under any agreements with the Federal Agency Loan Guarantor. 8. The lender has qualified Borrowers for guaranteed loans and has completed loan settlements and disbursements and is qualified to issue Federal

government guaranteed loans. 9. The Federal agency has already obligated the funds for the default claim for the guaranteed loan program. 10. Financial information is provided to the FM system on a loan portfolio level (i.e., not on a per loan basis). 11. The periodic re-estimation of liability and subsidy expenses is performed periodically in a different business process. 12. On default, a loan is removed from the pool and managed individually for guaranteed loan default claims. 13. An initial liability and subsidy expense for the guaranteed loan portfolio has already been posted in the FM system. FFMSR ID Reference(s) 1.1.2; 1.1.3; 1.1.4; 1.1.5; 1.2.1; 2.2.1; 2.2.2, 2.2.4, 2.2.5; 2.2.6 Initiating Event The Lender provides updated guaranteed loan portfolio information to the Federal agency.


11.2 Federal Government Guaranteed Loans subject to Credit Reform Typical Flow of Events


1 a. Determine the government program’s loan guarantee liability for the portfolio of guaranteed loans (LNM.040.010 Loan Portfolio Management)

b. Request processing of portfolio liability information (LNM.040.010 Loan Portfolio Management)

• Face value of guaranteed loans outstanding and the amount guaranteed

• Guaranteed loan portfolio liability information

• Request for processing of loan portfolio liability information

2 Receive and process request for processing of loan portfolio liability information (FFM.020.020 Financial Asset Information Processing - Loans)

• Guaranteed loan portfolio liability information

• Request for processing of portfolio liability information

• Appropriate liability adjustment entry created with reference to source information



4 a. Receive and process lender's guaranteed loan default claim (LNM.030.040 Loan Insurance Claim Processing)

b. Request funds availability check (LNM.030.040 Loan Insurance Claim Processing)

• Notice of default claim from lender

• Guaranteed loan terms and collateral information

• Validated notice of default claim from lender








6 a. Approve loan default claim (LNM.030.040 Loan Insurance Claim Processing)

b. Request guaranteed loan default claim disbursement (LNM.030.040 Loan Insurance Claim Processing)

• Funds availability response • Validated notice of default claim

from lender

• Approved loan default claim • Request for guaranteed loan

default claim disbursement

7 a. Receive and process guaranteed loan default claim payment request (FFM.030.090 Payment Processing - Loan Payments)


c. Initiate payment (FFM.030.090 Payment Processing - Loan Payments)




• Request for guaranteed loan default claim disbursement




• Certified disbursement schedule • Lender receives payment • Disbursement confirmation

information






9 a. Determine value of foreclosed asset (LNM.030.040 Loan Insurance Claim Processing)

b. Request invoice for balance needed to recover guarantee paid out, offset by value of foreclosed asset (LNM.030.040 Loan Insurance Claim Processing)

• Estimated net recovery from foreclosed asset

• Request for recording of value of foreclosed asset

• Request for invoice for balance to recover guarantee paid out

10 a. Receive and process request to record value of foreclosed asset (FFM.020.010 Financial Asset Information Processing-Property, Plant, and Equipment)

b. Receive and process request for invoice to recover guarantee paid out, offset by value of foreclosed asset (FFM.060.020 Public Receivable Set-up and Invoicing)

• Request for recording of value of foreclosed asset

• Request for invoice for balance to recover guarantee paid out

• Appropriate asset value entry created with reference to source information

• Appropriate receivable entry created with reference to source information






12 a. Monitor age of receivable and determine accrued interest (LNM.030.040 Loan Insurance Claim Processing)

b. Request recording of accrued interest (LNM.030.040 Loan Insurance Claim Processing)

• Receivable for balance to recover guarantee paid out

• Request for recording of accrued interest

13 Receive and process request for recording of accrued interest (FFM.040.010 Revenue Processing)

• Request for recording of accrued interest

• Appropriate revenue entry created with reference to source information



15 Request referral of debt to Treasury for collection (LNM.030.040 Loan Insurance Claim Processing)

• Delinquent debt for balance to recover guarantee paid out

• Request for referral of delinquent debt to Treasury

16 Receive and process request for referral of delinquent debt to Treasury for collection (FFM.070.010 Delinquent Debt Collection)

• Request for referral of delinquent debt to Treasury

• Referral to Treasury for collection • Appropriate receivable entry


• Appropriate interest accrual entry created with reference to source information






18 Report on delinquent debt (FFM.070.030 Delinquent Debt Reporting)

• Delinquent debt for balance to recover guarantee paid out

• Delinquent debt information

11.2 Federal Government Guaranteed Loans subject to Credit Reform



Documents

Financial Management Common Core Solution Business · PDF fileFinancial Management Common Core Solution . Business Use Cases. ... Federal Financial Management Business Use Case