Change Request for Certification and Release of Funds Form

All Certified Projects Must Follow NM State Policies and Procurement Code

Change Type:

/ Scope / Budget / Schedule

Project Name

/ Revenue Accounting and Collection Standalone
Project Number / Date / 02/20/2008
Lead Agency / TRD / Agency Code / 333
Other Agencies / Project Phase / Implementation

Executive Sponsor

/ Wanda Helms, Phil Salazar
Project Manager / Charlene Trujillo
Agency Head / Jan Goodwin
Agency CIO/IT LEAD / Marlin Mackey
Project Description (Provide a brief description and purpose for this project)
Comments: This project serves four purposes: 1) to convert from a Front-End Revenue Accounting model to a Back-End Revenue Accounting model for all taxes processed by the Taxation & Revenue Department (TRD); 2) to upgrade Combined Reporting System (CRS) Back-End Revenue Accounting from GenTax® version four to GenTax® version six; 3) to implement Collection Standalone functionality within GenTax®; and, 4) to implement a Collection Outsourcing interface.
Two revenue accounting models exist in GenTax® – the Front-End revenue accounting model and the Back-End revenue accounting model. The Front-End revenue accounting model can be used to track cash and the resulting disposition as they are processed by the system. For example, the amounts applied to tax, penalty and interest are recorded against each payment. The current system relies heavily on Front-End revenue accounting to record amounts received by Program type and is effective for tracking total cash, but is lacking in distribution reporting detail.
The Back-End revenue accounting model is used to track detailed information about monies in GenTax® distributed into revenue accounts. The Back-End model provides greater revenue detail about the actual disposition of revenue in the system. Converting to the Back-End revenue accounting model will improve reporting and online access to distribution information and will provide a more robust, accurate, and trusted revenue accounting scheme for all taxes.
CRS accounts are currently utilizing the Back-End revenue accounting model, but must be upgraded from GenTax® version four to GenTax® version six in order to take advantage of all the latest reporting features available in GenTax® version six. This upgrade will provide better reporting and distribution detail than the current version allows.
FAST Enterprises has developed functionality within GenTax®, Collection Standalone, which supports downloading collection information to remote devices. This functionality allows collectors remote access to their cases while in the field. Collectors do not currently have the ability to download collection information for use in out-of-office collection activity. When collectors now work with taxpayers, updates regarding changes to taxpayer information, funds collected or future actions are noted in writing. This prevents updating information in real time as collectors’ are unable to perform this activity until returning to their office. During the time from meeting with a taxpayer to returning to the office, collectors can forget information or lose paper trails.
The Collection Outsourcing feature will allow TRD to pursue taxes owed to the State of New Mexico by referring delinquent accounts to a contractor. TRD will assign accounts with delinquent liabilities to a contractor based on criteria defined by the Audit and Compliance Division. Prior to outsourcing, a warning letter will be sent to the taxpayer explaining the outstanding balance will be sent to and contractor for collection if it remains past due. This outsourcing will generate additional revenue for the department.
Planned Start Date / 05/01/2007 / Planned End Date / 06/30/2008

Justification for Change in Certification (Include budget adjustment request; Business Value and/or program Results)

Comments: The scope for the collection outsourcing is to: 1) distribute certain collections to outside collection agencies for collection; 2) give the taxpayer the opportunity to pay their outstanding balance to the department prior to sending the accounts to an outside collection agency; and 3) generate revenue by pursuing outstanding debt that does not fall within the criteria for collections by TRD.
Amount Requested this Certification / $ 189,970
Amount Previously Certified / $ 1,180,431
Remaining Appropriation not Certified / $ 0
Total Appropriated Amount (include any new funds) / $ 1,370,401

Certification History (Include any previous project or phase certifications)

Date
/ Amount / Funding Source(s) (use specific citations to laws, grants, etc.)
02/08/2007 / $1,128,771 / Laws 2006; Chapter 109, Section 41
01/03/2007 / $51,660 / Laws 2006; Chapter 109, Section 41

Appropriation History (Include all Funding sources, e.g. Federal, State, County, Municipal laws or grants)

Fiscal Year
/ Amount / Funding Source(s)
FY08 / $189,970 / NM: Laws of 2007, Chapter 28, Section 10 (C)[1]
FY07 / $703,000 / NM: Laws of 1999; Chapter 10, Section 1, Sub-section D[2]
FY07 / $154,556 / NM: Laws of 2006; Chapter 109, Section 4[3]
FY05 extended to FY07 / $322,875 / NM: Laws of 2006; Chapter 109, Section 5, Sub-section 12[4]
TOTAL / $1,370,401
Budget
Comments: Backend Revenue Accounting began in FY07 and will complete in FY08. Collection Standalone was started and completed in FY08. Collection Outsourcing will begin and anticipated to be completed within FY08.
Description
/

FY07 & prior

/ FY08 / FY09 / FY10 / FY11
Staff - Internal
Consulting Services / IV&V: / $22,601 / $46,329
FAST: / $232,739 / $1,068,732
Hardware
Software
Total / $255,340 / $1,115,061

Independent Verification & Validation (Include summary of the latest IV V report)

Comments: IV&V functionality will be incorporated throughout the project life cycle. TRD has used the same vendor for Backend Revenue Accounting and Collection Standalone. It would be of most benefit to use the same vendor for the Collection Outsourcing as they are familiar with how the GenTax® system functions. They have been instrumental in providing recommendations to meet the requirements of the projects have helped in identifying the risks that may be associated with the progress of the project. Draft deliverables are currently being prepared to cover change in scope.

Impact of Change (May Include Significant Risks & Mitigation Strategy; SECURITY, Consolidation & Maintenance Strategies; Records Retention; & Business Performance Measures)

Comments:
Risks
·  End-of-life hardware and firewalls could fail during project implementation, affecting project implementation and schedule.
·  Observed system functionality may not match NM business needs.
·  Additional functionality beyond that implemented in COTS solution may be defined by TRD ASD customer.
Mitigation strategy
Risks are minimized by using COTS application already in place in Louisiana, Idaho, and other states; and also through employing vendor with successful track record within TRD (FAST Enterprises and GenTax system with multiple successful rollouts).
Consolidation Strategy:
Revenue accounting distribution will leverage the SHARE implementation through better distribution of tax revenue; otherwise, this project has no direct consolidation or collaboration plans with other agencies, although GenTax® data is shared with some other agencies (e.g. DFA, Department of Labor, Workers Compensation). Thus any taxpayer benefits applicable to TRD may also be applicable to those other agencies. All production GenTax® components are housed at the GSD/ISD data center.
Maintenance Strategy:
GenTax® is the tax processing application of record. Since both the Back-end Revenue Accounting and the Collection Standalone functionality will be configured within the existing GenTax® application, current maintenance and support methodologies of GenTax® will apply.
Record Retention Policy:
The TRD records retention plan is based on 1.18.333 NMAC, effective January 5, 2004. This plan details records retention and disposition schedules for the various record types used within TRD. For GenTax®, the policy is as follows:
·  Local government tax data: 10 years after local government repeals or adopts new tax law
·  Personal income tax (PIT) data: 7 years after the close of the tax year in which created
·  Combined revenue system (CRS) taxpayer data: 7 years after the end of the tax year in which
·  created
·  Corporate income tax (CIT) data: 7 years after the end of the tax year in which return is due, provided no liability exists
·  Employer’s information data: 5 years from receipt of payment
·  Water data: 7 years from the end of the tax year in which created
·  Telecommunications data: 7 years from the end of the tax year in which created
·  Gaming data: 7 years from the end of the tax year in which created

Security Strategy (Application and Data Security Process, Plan, or Standard)

The components implemented in this project employ the same network security structure as the rest of GenTax®. TRD employs a firewall in addition to the firewall in place at the DoIT data center. All client machines must have the GenTax® client application installed in order to connect to the GenTax® database. All transmitted data is encrypted.
In addition, this project will utilize the same data security strategy as the rest of GenTax® which utilizes three main elements: 1) groups; 2) functions; and, 3) users. This project will also follow these practices and be added to our disaster recovery plan.
A function can exist without a component and a component can exist without a function. However, to place access rights on a component it must be associated with a function. This is done in reference tables. These reference tables contain a number column that can be used to associate a component with a function. The column contains the ID of the function to associate the component with. If the column value is zero then there are no security restrictions on that component.
A group can have any number of functions associated with it. The security access given by a group is the sum of its functions; therefore any user that belongs to the group has all the access rights provided by the group’s functions. Managers and TRD Help desk staff (through management input) set user permissions based upon user role.
Also, TRD currently runs full database backups nightly, and creates incremental backups every fifteen minutes. Once each week, full backups are stored to tape for one month. This project will also follow these practices and be added to TRD’s disaster recovery plan. All production GenTax® components are housed at the DoIT data center.

IT System Analysis

The Collection Outsourcing module being requested will use the hardware and software that exists for the GenTax® applications already in production. There will be new configuration and coding needed on the existing software. There will be minimal if any impact on the hardware and software. No architecture changes are required for this project scope change.
The network impact will also be minimal as the processing will be within the current configuration. Files that will be sent to the external collection agencies will be encrypted, zipped, and will be transferred via a secure FTP. The exchange of files will occur daily and will be generated during our nightly batch processing. The total size of zipped files being transmitted on a daily basis should be no more than 2MB each in a compressed file which should be of minimal impact on the network.
The production GenTax® system is currently being housed at the DoIT Data Center. The new Collection Outsourcing module will follow the same procedures that have been implemented since the start of the GenTax® project. TRD developers and database administrators will move the new configuration to the existing production application and database servers during off hours. The anticipated dates to move the application into production is June 20, 2008. There will be no impact on the DoIT Data Center.
A diagram of the GenTax® production system and the security layout is displayed in Exhibit 1.

business Continuity Strategy

TRD currently runs full database backups nightly, and creates incremental backups every fifteen minutes. Once each week, full backups are stored to tape for one month. This project will also follow these practices and be added to TRD’s disaster recovery plan. All production GenTax® components are housed at the DoIT data center.

This is a controlled document, refer to the document control index for the latest revision

Revision: 2/14/08 Page 1

Change Request for Certification and Release of Funds Form

All Certified Projects Must Follow NM State Policies and Procurement Code

Exhibit 1

This is a controlled document, refer to the document control index for the latest revision

Revision: 2/14/08 Page 1

[1] Legal authority is contained in the General Appropriation Act, Laws of 2007, Chapter 28, Section 10 (C).

[2] The appropriation derives from tax amnesty revenues earmarked for the TRD Information Management Systems Project and is non-expiring.

[3] The total RPD and ACD operating budget stipulated in this appropriation is $27,960,500. Only the amount appropriated for this project is listed here.

[4] The listed amount reflects a portion of the $493,789 remaining balance from the original appropriation of $2,300,000 to enhance tax collection efforts.