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This document captures the functional specifications of a proposed system or application. Typically, IT development work that will impact more than one “actor” or span more than one promotion cycle is of sufficient size to need both business requirements and functional specifications. IT development work that impacts only one or less “actors” or can be done in one promotion cycle most likely requires functional specifications only. While the business requirements represent the high level problems that are to be solved by the proposed project, how they are to be solved is documented in the functional specifications.

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