TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Financial Management Systems
OMB is revising
Circular A-127, Financial Management Systems, to improve coordination
among the operators of agency financial management systems, vendors of
financial management software, E-Gov shared services, and the Department
of Treasury. The revisions incorporate the transfer of responsibilities
from the Joint Financial Management Improvement Program to the Chief Financial
Officers Council and the Office of Federal Financial Management. These
updates are effective immediately.
A revised version
of the entire Circular will be made available on the OMB web site. All
questions or inquiries concerning OMB Circular A-127 should be addressed
to the Office of Federal Financial Management, Federal Financial Systems
Branch, telephone number 202/395-3993.
Joshua B. Bolten
Transmittal Memorandum No. 3 Revisions to
OMB Circular A-127
Memorandum replaces and rescinds Circular A-127 Transmittal Memorandum
No. 2, dated June 10, 1999, which revised Circular A-127, "Financial
Management Systems" dated July 23, 1993. Transmittal Memorandum No.
2 revised Sections 8d and 9b of A-127 and added new Sections 9a(3) and
9c. This Transmittal Memorandum revises Sections 7g, 7i, 8d, 9b, and 9c.
It deletes Section 9a(3) and adds new Sections 8g and 9d.
The changes to Circular A-127 are as follows:
Section 7g: “Joint
Financial Management Improvement Program (JFMIP)” is replaced
by “Office of Federal Financial Management (OFFM).”
Section 7i: “JFMIP”
is replaced by “OFFM.”
Section 8d is
deleted in its entirety and replaced with the following:
8d(1)Use of "Off-the-Shelf" Software. Agencies replacing
software to meet core financial system requirements must use "off-the-shelf"
software that has been tested and certified through the Chief Financial
Officers Council (CFOC) software certification process as meeting OFFM
core financial system requirements. Agencies may purchase this software
or contract for a service that operates this software using the strategy
and procurement vehicle they believe will best enable them to meet their
needs in a timely and effective manner following the competition requirements
associated with the procurement vehicle being used to conduct the acquisition.
OMB policy pertaining to using "off-the-shelf" software is
contained in OMB Circular A-130 and must be followed when replacing
financial management systems.
Software Certification Testing. "Off-the-shelf" software
will be tested to ensure that it meets core financial system requirements
as defined in the Core Financial System Requirements document
published by OFFM. The CFOC will coordinate the testing process and
issue software certifications. Information on the details of the certification
testing process and its results will be available to any interested
Federal agency for any certified software package.
A new Section
8g is added and reads as follows:
Requirements Management. Agencies operating or establishing contracts
for financial reporting, transaction processing, or other services that
are or will be interfaced to multiple agencies’ financial systems
must coordinate with OFFM the deployment of these services and changes
to them. OFFM will establish interface requirements for these services
and incorporate them into the Core Financial System Requirements
or other requirement documents, as appropriate. OFFM will manage the
deployment of new interface requirements for efficiency and will rely
generally on the core financial system vendors to develop modifications
to operational systems.
is deleted, section 9a(4) is renumbered accordingly.
Section 9b is revised to read as follows:
9b. GSA Responsibilities. GSA also will make procurement vehicles
available to agencies for acquiring software that has been certified
according to the processes in Section 8d(2).
Section 9c is
revised to read as follows:
Responsibilities. The CFOC will establish processes for testing
"off-the-shelf" software supporting core financial system
requirements that include:
and administering the certification test,
GSA when a software package successfully completes the certification
interested parties with information on the core financial system
requirements and their related testing scenarios, and
interested parties with details on the results of the certification
tests for certified software packages.
A new Section
9d is added and reads as follows:
9d. Transition. All software certifications previously issued
by the Joint Financial Management Improvement Program (JFMIP) shall
be deemed to have been issued by the CFOC.
management system requirements documents and other guidance issued by
the JFMIP are transferred to OFFM and remains in effect until modified.
OFFM will issue guidance memoranda as needed to clarify any transition
issues. OFFM will issue guidance memoranda as needed to implement the
requirements of this Circular.