Financial Management Capability Framework

Alert Message

Treasury released the FY 2027 updates to the federal financial management (FFM) business standards, effective November 13, 2026. These updates can be found in the table below.

The Financial Management Capability Framework (FMCF) is the standards and capabilities that define baseline needs for solutions and services in the FM Marketplace Catalog, including cloud-based core financial systems (Core FS). By ensuring that baseline standards are incorporated into Marketplace solutions and services, we'll help agency leaders gain efficiencies as they plan modernizations, comply with federal policies, and support improved data accuracy and reporting.

The FMCF consists of nine (9) components. It includes the federal financial management (FFM) standards and additional capabilities defined by the FM QSMO that support and complement the standards. The FMCF was developed in collaboration with federal agencies and industry stakeholders. The framework is used as a basis for evaluating and ensuring that Marketplace solutions and services meet baseline needs. FM QSMO's goal is to standardize and streamline what is common for agencies. The Guide to the FM Marketplace provides an overview of how the FM QSMO operates and how providers apply FMCF standards and capabilities to solutions and services in the FM Marketplace.

Treasury, as the designated standards lead for core financial management and the designated QSMO for financial management, is responsible for maintaining the FMCF and will periodically update it to show changing policy or other requirements. To do this, we work closely with other Lines of Business and standard setting agencies, federal agencies, the vendor community, and other stakeholders. To stay informed of pending changes and draft updates, please monitor the FM QSMO Updates webpage or contact us to be added to our mailing list. The FMCF components can be accessed using the links in the table below.

FMCF Components - FY 2027

The FY 2027 FMCF release approach included four incremental comment periods, each focused on a specific theme, a mid-year informational release, and this final release. The more frequent comment periods created additional opportunities for engagement and feedback, while the mid-year informational release gave vendors an early view of new requirements to help inform development. This same approach will be used to prepare for the FY 2028 release. Please note that other websites referencing the FMCF components may display an earlier version.

FMCF Component	Description
FFM Functions and Activities	Defines the functions and processes in the FFM functional area providing identifiable outcomes/outputs.
FFM Business Use Cases	Provides a set of agency "stories" documenting the key activities, inputs, outputs, and other functional area and centralized solution/service intersections to describe how the federal government operates.
FFM Business Capabilities	Defines outcome-based business needs for the FFM functional area mapped to federal government authoritative references, forms, and data standards.
FFM Business Data Elements	Defines the minimum set of business data elements required to support the inputs and outputs identified in the FFM Business Use Cases, FFM Business Capabilities, Core FS Pre-Built Business Information Exchanges, and Core FS Pre-Built Business Reports.
Core FS Pre-Built Business Reports	Defines the common business reports needed in a Core FS solution to execute FFM Functions and Activities, FFM Business Capabilities, and FFM Business Use Cases.
Core FS Pre-Built Business Information Exchanges (BIEs)	Provides the business rules for common exchanges of business information between a Core FS solution and another Federal Integrated Business Framework (FIBF) functional area or a centralized solution/service.
Functions, Activities and Business Capabilities for: Cybersecurity (CYB) & Information Technology Services (ITS) Electronic Records Management (ERM) (These files are posted on the FIBF webpage.)	Capabilities that establish expectations for FM solutions and services in the Marketplace. These include the functions, activities, and capabilities from federal cybersecurity, ITS and ERM which must be incorporated into FM solutions and services.
FM Solution/Service Evaluation Criteria	Used by the FM QSMO when evaluating potential offerings for the FM Marketplace and by agencies during their acquisitions. The criteria categories include business, technology design, technology operation, programmatic, economic, and organizational.
FM Provider Performance Measures	Provides a set of government measures (activity and performance measures) used to evaluate FFM, CYB, ERM, and ITS functions/activities performed by an agency or provided as a service to agency customers.

Additional References

Additional References	Description
Guide to the FM Marketplace	A guide that explains the scope of the Marketplace and how the FMCF is used.
FMCF 101 Training for Agencies	Training material that gives agencies the information needed to locate, define, and restate the purpose of each FMCF artifact and use the FMCF to benchmark and standardize their existing FM capabilities.
FMCF 101 Training for Vendors	Training material that gives vendors the information needed to locate, define, and restate the purpose of each FMCF artifact and design FM solutions/services that conform to the FMCF.
FMCF Release Notes	A summary of the updates made to the FY 2027 FMCF components.
Federal Financial Management Improvement Act (FFMIA) Compliance Determination Resource	Available to assist federal agencies assessing their core financial system's (Core FS) compliance in conjunction with, and as a supplement to, OMB Circular No. A-123 Appendix D.

Archives of past FMCF versions are available by request. Please contact FMQSMO@fiscal.treasury.gov.

Last modified 11/13/2026