Tax Rate Redux

PROJECT MANAGEMENT PLAN
(PMP)

Executive Sponsor – Celina Bussey
Project Sponsor - Sue Anne Athens
Business Owner – Roy Padilla
Project Manager – Himanshu Kapoor
Date: August 10, 2016

Table of Contents

Table of Contents

Revision History

1.0 Project Overview

1.1Executive Summary- rationale for the Project

1.2 Funding and Sources

1.3 Constraints

1.4 Dependencies

1.5 Assumptions

1.6 Initial Project Risks Identified

2.0 Project Authority and Organizational Structure

2.1 Stakeholders

2.2 Project Governance Structure

2.2.1 Describe the organizational structure – Org Chart

2.2.2 Describe the role and members of the project steering committee

2.2.3 Organizational Boundaries, interfaces and responsibilities

2.3 Executive Reporting

3.0 Scope

3.1 Project Objectives

3.1.1 Business Objectives

3.1.2 Technical Objectives

3.2 Project exclusions

3.3 Critical Success Factors

4.0 Project Deliverables and methodology

4.1 Project Management Life Cycle

4.1.1 Project Management Deliverables

4.1.2 Deliverable Acceptance Procedure

4.2 Product Life Cycle

4.2.1 Technical Strategy

4.2.2 Product and Product Development Deliverables

4.2.3 Deliverable Approval Authority Designations

4.2.4 Deliverable Acceptance Procedure

5.0 Project Timeline

5.1 Project Team

6.0 Project Management and Controls

6.1 Risk and issue Management

6.2 Independent Verification And Validation - IV&V

6.3 Scope Management Plan

6.3.1 Change Control

6.4 Project Budget Management

6.4.1 Budget Tracking

6.6 Performance Measurement (Project Metrics)

6.6.1 Baselines

6.8 Configuration Management

6.9 Procurement Managemetn Plan

7.0 Project Close

Revision History

Revision Number / Date / Comment
0.1 / August 10, 2016 / Draft version

1.0 Project Overview

1.1Executive Summary- rationale for the Project

The Department of Workforce Solutions (DWS) implemented the new Unemployment Insurance Application (UIA) in January 2013. The UI Application was implemented with the employer contribution rate computation based on the reserve ratio method.

In 2014, new legislation was approved to address issues pertaining to DWS’s trust fund reserve. The UI Application was modified to support alternate methodology in calculating the tax rate based on a benefit ratio method.

In March 2016, the legislation (HB 283 Section 51-1-11 NMSA 1978) was passed modifying the benefit ratio calculation to include the use of an employer’s experience history factor along with their benefit ratio to determine their contribution rate. The overall goal of this project is to implement changes to UIA required to assign a history factor to each experience-rated account. Computation and assignment of experience rates using benefit ratio and history factor are required effective the third quarter of 2016.

1.2 Funding and Sources

Source / Amount / Associated restrictions / Approvers
Federal USDOL Reed Act Funds / $803,799 / fEDERAL us dol Base GRant Rules. / NMDWS

1.3 Constraints

Number / Description
1 / Tax Operation, Appeals and ER&A personnelmay have limited availability; therefore JAD sessions, meetings, testing and training will need to be carefully planned to accommodate resource availability
2 / All deliverables identified in the Project Plan must adhere to documentation guidelines as determined by DWS
3 / Implementation of Tax Rate Redux changes must align with UIA system changes resulting from other projects
4 / UIA employer Contribution Rate computation changes must remain compatible with the architecture and frameworks of impacted business areas, such as Registration, Appeals, and Reports

1.4 Dependencies

  • Mandatory dependencies are dependencies that are inherent to the work being done.
  • D- Discretionary dependencies are dependencies defined by the project management team. This may also encompass particular approaches because a specific sequence of activities is preferred, but not mandatory in the project life cycle.
  • E-External dependencies are dependencies that involve a relationship between project activities and non-project activities such as purchasing/procurement

Number / Description / Type M,D,E
1 / Full understanding by all parties of the “current state” processes / M
2 / Full understanding of all components of employer Contribution Rates functionality in UIA / M
3 / Documentation of Standard Operating Procedures (SOPs) / M
4 / Adequate communication (as determined by Communications Director) with business stakeholders and departmental operational staff about business process changes that are being designed and released / M

1.5 Assumptions

Number / Description
1 / Business Analyst and Developer resources will be available and assigned for the duration of the project
2 / All impacted teams and personnel (Tax Operations, Appeals, Legal, etc.) will actively participate in business requirements and design workshops
3 / All impacted teams and personnel (Tax Operations, Appeals, Legal, etc.) will be available for follow-up meetings regarding review and feedback on requirements, design and deliverables
4 / Tax Operations, Appeals, and Business Analyst personnel will participate in Functional Testing, System Testing, and User Acceptance Testing
5 / Legal personnel will be available to provide legal counsel and keep the team notified of any administrative rules drafted to support implementation of the required changes
6 / The impacted business units will update their SOPs to support implementation of the required changes
7 / The Training Team will prepare and deliver any required trainings
8 / Development and Test environments will be available for the project

1.6 Initial Project Risks Identified

Risk 1

Description–Resource Availability / Probability: High / Impact:High
Mitigation Strategy:Project will be assigned a high priority by DWS and appropriate resources will be made available to perform the work per the approved work plan.
Contingency Plan: Additional contract resources will be deployed to the project.

Risk 2

Description– Potential of uncovering existing defects that have not been previously identified / Probability:Medium / Impact: High
Mitigation Strategy:Perform extensive testing via several testing phases such as Unit testing, Systems Integration testing, UAT testing and Regression testing.
Contingency Plan Additional resources will be deployed to the project to help identify/resolve defects.

2.0 Project Authority and Organizational Structure

2.1 Stakeholders

name / Stake in Project / Organization / Title
Celina Bussey / Executive Sponsor, Project Steering Committee / DWS / Cabinet Secretary
SueAnne Athens / Project Sponsor and Solution Owner / DWS / CIO
Jason Dean / Business Owner / DWS / UI Director
Roy Padilla / Business Owner / UI / Deputy UI Director
Joy Forehand / Communications Director / DWS / Deputy Cabinet Secretary
Lynne Throop / Training Manager / DWS / Training Director
Steven Madigan / Unemployment Insurance (UI) Trainer / DWS / Training Specialist
Rudolph "Rudy" Arnold / Regulations and Law / Legal / Lead Attorney
Shawn Cummins / Regulations and Law / Legal / Chief Legal Counsel
Reba Blackwell / Tax Appeals / Appeals / Chief of Appeals
Rachel Moskowitz / Federal Reporting and Trust Fund Projections / ER&A / ER&A Leader
Ray Gabbard / Federal Reporting and Trust Fund Projections / ER&A / Economist
Michelle Doran / NAICS Code Assignment / ER&A / Economist
Denise Garcia / Tax Operations / UI / Tax Operations Lead
Eric Aragon / PMO Director / DWS / IT Manager

2.2 Project Governance Structure

2.2.1 Describe the organizational structure – Org Chart

2.2.2 Describe the role and members of the project steering committee

The Project Steering Committee will provide oversight to the project effort. They will identify key policy issues and ensure follow through on associated business and regulatory changes. The committee is comprised of the Secretary and Deputy Secretaries representing the DWS executive business, general counsel and public relations. They will receive project status reports throughout the effort.

2.2.3 Organizational Boundaries, interfaces and responsibilities

All changes to the UIA initiated by this project will be reviewed and approved by the DWS Change Control Board. All necessary change request and associated work load for development activities will be managed under the existing release management plan. The PMO will directly manage and review resourcing, scheduling and reporting adherence and mitigate issues as they arise.

2.3 Executive Reporting

Biweekly status reports will be provided in conjunction with milestone status meetings.

3.0 Scope

3.1 Project Objectives

3.1.1 Business Objectives

Number / Description
Business Goal / The goal of this project is to ensure DWS is in compliance with the updates to contribution rate calculation as defined in House Bill 283.
Business Objective 1 / Compute and assign an experience rate to employer accounts using both their benefit ratio and assigned history factor (modified benefit ratio method) effective July 1, 2016
BUSINESS OBJECTIVE 2 / Post revised rates to all experience rated employer accounts to reflect rates computed using the modified benefit ratio method for the third and fourth quarter of 2016
BUSINESS OBJECTIVE 3 / Compute and assign experience rates for 2017 using the modified benefit ratio method
BUSINESS OBJECTIVE 4 / Generate rate notices for period beginning July 1, 2016 through December 31, 2016. Generate rate notices for 2017 and after. Devise a process to allow rate notices to be mailed to an employer in a single mailing
BUSINESS OBJECTIVE 5 / Generate a modified ETA 204 report for 2016
BUSINESS OBJECTIVE 6 / Modify other business processes impacted by the assignment of more than one rate in a given calendar year, including the annual IRS FUTA Certification process and the FUTA recertification process

3.1.2 Technical Objectives

Number / Description
Technical Objective 1 / Add flexibility in the system to enable determination of an employer’s computation period based on effective begin date and effective end date, to compute Contribution Rate
TECHNICAL OBJECTIVE 2 / Modify the system to use additional factors required to determine an employer’s reserve and history factor. Apply history factor in computation of Contribution Rate
TECHNICAL OBJECTIVE 3 / Add configuration to the system to allow an authorized user to select a rating method to be used to compute and assign rates for a specified period of time
TECHNICAL Objective 4 / Integrate solutions identified through JAD sessions into the existing UIA system

3.2 Project exclusions

This project effort does not include limiting the year-over-year increase in Total Contribution Rate (sum of employer's Contribution Rate and Excess Claims Rate) to [2%].

3.3 Critical Success Factors

Number / Description
1 / Rate calculations are accurate for at least 90% of employers as measured by the number of adjustments or fixes required after Go-live.
2 / Increased transparency is demonstrated through open communication that includes explanation of upcoming changes, new calculation for contribution rate.
3 / All stakeholders receive education and/or training on system and process changes; success will be reflected by the absence of any abnormal increase in inquiries to the DWS call center concerning the new contribution rate calculation method.

4.0 Project Deliverables and methodology

4.1 Project Management Life Cycle

Phase / Summary of Phase / Key Deliverables
Initiation / Establish project goals and setup the project team / Project Charter
Planning / Project organization planning / Project Management Plan, Project Schedule, Draft high level Requirements, Bi-weekly status reports, Monthly status reports, Monthly PCC Reports
Requirements and Design / Define requirements and define system design / Business Requirements Document and Traceability Matrix, System Design Documents,
Development and Testing / Development and Unit Testing, System Testing, and Integration Testing / Sprint Development Plan, Test Plan, Test Scenarios, Cases and Scripts, Sprint Reviews, Test Reviews
Implementation / Testing, Implementation planning / UAT testing, Regression testing and Bug fixing; Code Migration to Production
Close / Compile results and close-out / CCB reviews, Approvals, Operational hand off documentation including SOPs, Lessons learned

4.1.1 Project Management Deliverables

Project Deliverables are work products or artifacts that are driven by the project management methodology requirements and standard project management practices regardless of the product requirements of the project.

Task Item / Sub Tasks / Description
1.1 Planning and Project Management / 1.1.1 Implementation Management Plan / Contractor will create, maintain, and present a Tax Rate Reform Implementation Management Plan for the period of performance to include the following.
  • Work Breakdown Structure
  • Build Schedule
  • Work Schedule
  • Major milestones
  • Key SDLC documentation and activities.
  • Project meetings
  • Risk Log
Contractor will endeavor to submit an updated version of the plan to the Procuring Agency CIO by the 1st day of every month.
1.1.2 Project Issue Log / Contractor will create an Issue Log to document issues, resolutions, times and dates.
Contractor will post, store and maintain the log electronically to an internal shared network drive or Procuring Agency SharePoint site.
Contractor will present the Issue Log at the Bi-Weekly status meeting.
1.1.3 Change Management / Contractor will conform to the existing Change Management guidelines as defined by NM DWS for changes related to the project.
1.4 Project Close-Out / 1.4.1 Closeout / Contractor will conduct project closeout activities, which entails creating project closeout plan and report, support lessons learned review and documentation.
1.4.2 Documentation and Training / Contractor will assist with the preparation of materials for training activities related to the project. The Procuring Agency will conduct any necessary training activities.
1.5 Reporting / 1.5.1 Bi-weekly Project Status Meeting / Contractor will coordinate, schedule, and prepare materials for Bi-Weekly Project Status meetings for review, approval and acceptance. The materials for the Bi-Weekly Project Status include:
  • Provide a bi-weekly status of the release schedule
  • Identify and present updated task and milestone accomplishments
  • Itemize needs, identify risk and current activities
  • Define plans for the upcoming two weeks before next meeting.

1.5.2 Monthly Status Report / Contractor will present a monthly status report to the Procuring Agency CIO by the 15th day of each month. Each report will contain the status of each deliverable and the following updated reports:
  • Project Management Plan, including Schedule
Project Issue and Risk Log

4.1.2Deliverable Acceptance Procedure

All deliverables are reviewed by business owner, technical management and subsequently approved by CIO prior to invoice acceptance.

4.2 Product Life Cycle

4.2.1 Technical Strategy

The System updates will be incorporated into existing UIA and be handled within the existing uFACTS framework.

4.2.2Product and Product Development Deliverables

Product deliverable will be the updated UIA System that supports Rate calculation methodology laid out by HB 283.

Requirements and Design / Implementation System Design Documents / Contractor will assist Procuring Agency in defining design alternatives (to the extent necessary) and coordinate submission to the Procuring Agency for review, approval, and acceptance.
Contractor will assist Procuring Agency in designing and documenting the proposed solution for the Procuring Agency as it relates toimplementing the Tax Rate Reform solution.
Contractor will coordinate submission of defined design documents to the Procuring Agency per the mutually agreed upon project schedule.
Design Walkthrough and Approval Session / Contractor will coordinate, schedule and facilitate with Procuring Agency design walk through sessions per the mutually agreed upon and approved release plan per sub task 1.1.1.
Contractor will coordinate submission of applicable design documents to the Procuring Agency for review, approval and acceptance.
Contractor will submit walk through attendance sheets to the Procuring Agency for review and approval.
Development and Testing / Solution Development / Contractor will develop application code in accordance with the mutually agreed upon and approved design per sub task 1.2.2.
Contractor will assist with the deployment of the developed application code to a test environment
Contractor will agency-identified tools and processes to lodge and promote application code
Testing / Contractor, with business and technical teams as appropriate, will perform mutually agreed upon unit and system testing activities related to the project.
Contractor will assist with the user acceptance testing activities.

4.2.3 Deliverable Approval Authority Designations

Deliverable Number / Deliverable / Approvers (Who can approve) / Date Approved
1 / Updated UIA System / CCB
2 / UIA release / CCB

4.2.4 Deliverable Acceptance Procedure

Product deliverables will be accepted through the CCB process at NMDWS.

5.0Project Timeline

5.1 Project Team

See org chart above.

Role / responsibilities
Executive Sponsor /
  1. Provide guidance to team on how project fits within overall agency vision and goals

Project Sponsors /
  1. Define overall project goals and objectives
  2. Provide guidance and directions to the project team over the course of the project
  3. Provide conflict resolution

BusinessOwner /
  1. Provideinsightstobusinessprocedures
  2. Develop, document, and distribute Standard Operating Procedures (SOPs)
  3. Ensure availability of required subject matter expertise throughout the course of the project

SolutionOwner /
  1. Ensure availability of the technical infrastructure and technical expertise needed to develop the solution
  2. Ensure availability of sufficient human resources in following areas:
  3. Projectmanagement
  4. Businessanalysis
  5. Applicationdevelopment
  6. Training

customer /
  1. Provide subject matter expertise over the course of the project
  2. Participate in business solutions design discussions; when developed, test the solutions to ensure that they meet the business requirements
  3. Participate in development of SOPs
  4. Participate in test scenario definition and test script development

BusinessAnalysts /
  1. Elicit and document business requirements and system specifications
  2. Design and test business solutions
  3. Train the customer and business partners for system features
  4. Facilitate customer and business partner communications
  5. Facilitate test scenario development and test script development

businessPartners /
  1. Provide subject matter expertise throughout the course of the project
  2. Participate in business solutions design discussions; when developed, test the solutions to ensure that they meet the business requirements
  3. Participate in test scenario definition and test script development

Trainer /
  1. Develop a comprehensive training plan for the impacted tax rate processes, business processes and system features
  2. Develop training materials
  3. Facilitate training

PMO /
  1. Provide monitoring and governance support, including routine review of the project status, issues, and risks

Communications Director / 1.Develop a comprehensive communications plan for external and internal stakeholders
2.Review and provide feedback on all system-generated external communications (e.g. rate notice)
Legal Counsel / 1.Development of required administrative rules
2.Review and provide feedback on all system-generated external communications (e.g. rate notice)
ProjectManager /
  1. Manage project schedule and scope
  2. Balance project constraints
  3. Manage stakeholder communications

6.0 Project Management and Controls

6.1 Risk and issue Management