High Level Design Specification for the NMDWS

Treasury Offset Program (NMTOP)

NMDWS Workforce Technology

10/21/2013

REVISION HISTORY

Date* / Version / Responsible / Reason for Revision
7/26/2013 / 1 / G. Becker, S. Kitts, L. Carrier / Initial Draft
8/1/2013 / 1.1 / G. Becker, L. Carrier / Updates per peer review
10/9/2013 / 1.2 / Sue Anne Athens / Added section for architecture
10/21/2013 / 1.3 / G. Becker, Sue Anne Athens / Updated for Project Certification Committee

Table of Contents

1.Introduction

1.1.Document Overview

1.2.Conceptual Design Review Cycle

2.Scope Overview

2.1.In Scope

2.2.Out of Scope

3.Conceptual Design - Sub Systems

3.1.NMTOP Application

3.1.1.Inputs

3.1.2.Input Activities

3.1.3.Outputs

3.1.4.Output Activities

3.2.Unemployement Insurance Application

3.2.1.Inputs

3.2.2.Input Activities

3.2.3.Outputs

3.2.4.Output Activities

4.Constraints

4.1.Assumptions

4.2.Stakeholders

4.3.Configuration Management

4.4.Risk Management

5.Glossary

1.Introduction

The Treasury Offset Program (TOP) is a government-wide debt matching and payment offset system developed by the U.S. Department of the Treasury/Financial Management Services (DOT/FMS). TOP works by matching a data base of delinquent debts owed to various government agencies against payments made by the government. When a delinquent claimant record is matched to a payment being issued, the payment is intercepted and offset by all or part of the debt.

The New Mexico Department of Workforce Solutions (NMDWS) is now expanding the TOP system with the New Mexico Treasury Offset Program (NMTOP) application, to include all unemployment insurance overpayment due to fraud or misreported and unreported earnings. These debts will be cross matched against an individual’s Federal income tax return and any overpayment owed to the NMDWS will be deducted from the individual’s tax refund and applied to the debt. While participation in TOP is not required by the Treasury, implementing the program is expected to significantly increase the Agency’s overpayment recovery.

A successful development of the New Mexico Treasury Offset Program (NMTOP) application in coordination with updates to the existing Unemployment Insurance Application is expected to achieve these goals.

1.1.Document Overview

The document overview provides a summary of each section contained within the New Mexico TOP (NMTOP) Conceptual Design.

Section 1: Introduction – This section contains the purpose/objectives, document overview, and review cycle.

Section 2: Scope Overview – This section provides an overview of the scope of the project.

Section 3: Conceptual Design – Sub Systems – This section provides the list of high-level requirements for the conceptual design of the system.

Section 4:Constraints – This section provides information on the project enablers, configuration management and risk management.

Section 5: Glossary of Terms – This section provides a glossary for terms that are associated with this phase of the Project.

1.2.Conceptual Design Review Cycle

The Project Manager has the responsibility for issuing and maintaining the Conceptual Design. To provide version control, the Conceptual Design will be identified with a version number and released via version control.

2.Scope Overview

The New Mexico Department of Workforce Solutions (NMDWS) Unemployment Insurance(UI) needs to establish a secure way to receive data from the Treasury Department for Federal Tax Offsets of overpayments, and process those offsets against Claimant overpayment records in the Unemployment Insurance Application (UIA). The infrastructure and processes implemented to accomplish this must comply with security requirements to prevent the system and all connecting infrastructure from becoming Federal Tax auditable entities. This is most easily accomplished by not distinguishing Federal Tax Information (FTI) offset data from any other UI payment data. The following is a description and requirements of the data flow to and from the Treasury and UIA.

The project scope includes the following sub-systems:

  • The NMTOP Application: This is a new, segregated and securedapplication that will be designed and developed to support the management and transfer of TOP data. The purpose of this application is to have a secure database, application and reporting capabilities that interact with the Department of Treasury’s TOP system and UIA. NMTOP will have all of the required security as defined in the Safeguards Procedures Report (SPR) and will reside on a segregated and secured server.
  • UIA: The current Unemployment System.

2.1.In Scope

The following are in scope for this project:

  • Requirements for the implementation of the NMTOP project. The list of requirements will include business, UIA, security, policy, procedures, training and operations related.
  • High level design of theNMTOPchanges for the UIA/interfaces.
  • High level process diagram for each of the proposed sub-systems that are in scope of NMTOP.

2.2.Out of Scope

The following is out of scope for this project:

  • Detailed Design for all activities not mentioned in Section.

3.Conceptual Design - Sub Systems

This section describes the architecture of the system and sub-systems. The following table describes the files that are sent and received by the sub-systems.

# / File Name / Description of the file / From / To / Method of File Transfer
1 / UIA OffsetReport/Query / This report contains the list of claimants that have debts in the Unemployment Insurance System / UIA / N/A / N/A
2 / Offset/Update File - NMTOP / This file contains the list of claimants that have debts in the Unemployment Insurance Application and any updated records to be stored in the NMTOP Applicationdatabase / UIA / NMTOP / Secure File Transfer Protocol (SFTP)
3 / Offset/Update File - TOP / NMTOP generates a modified file from the Offset/Update File received from UIA and sends it to TOP / NMTOP / TOP / SFTP
4 / Unprocessable File / This file contains the individual records that cannot be processed by TOP system and/or file errors. / TOP / NMTOP / SFTP
5 / Unprocessable No Match File / This file contains the individual records that cannot be processed by TOP system. Business type error / NMTOP / UIA / SFTP
6 / TOP Payment/ Adjustment File / This file contains the intercepted refunds and the payments (total and individual) and also contains all the reversals/adjustments. / TOP / NMTOP / SFTP
7 / AbridgedPayment/ Adjustment File / This contains information from the payments file, but the data is generalized. This data contains no FTI information / NMTOP / UIA / SFTP

3.1.NMTOP Application

3.1.1.Inputs

Inputs to NMTOP include the following:

1.Offset/Update File - NMTOP: This file is a UIA output file, which consists of the delinquent debts and updates. This file is received on a predetermined schedule. The file will be sent daily containing any updates and monthly the file will include all new delinquent debts identified.

2.Unprocessable File: This file is a TOP output file, which consists of the unprocessable records or errors from theOffset/Update file. This file is received in response to an offset/update file being sent.

‐Data or file format errors

‐No Matches - 1 or more data items does not match the data in TOP

3.TOP Payment/Adjustment File: This file is a TOP output file, which contains the debt collection information including the Social Security Number (SSN), name, amount and address of the claimant. The data from this file is considered Federal Tax Information (FTI) and access to this file and any data in this file must be restricted, and only provided to authorized staff members.

3.1.2.Input Activities

Offset/Update File

31: Process the Offset/Update File

  • The Offset/Update file is a UIA system output file.
  • The Offset/Update file is sent to the NMTOP application using FTP.
  • The Offset/Update file is validated for the correct format, length and other basic edits.
  • If the edits are successful, the data is loaded into the NMTOP FTI database via a load script. The data is encrypted in the database. The database resides on the NMTOP application. If the edits are not successful, the file is rejected and sent back to the UIA.
  • The encrypted data is accessible via a user interface residing on the secure server, to authorized staff members only.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOP application. The audit logs are retained based on the Agency’s retention policy.

Unprocessable Error File

32: Fix Unprocessable errors

  • The Unprocessable Error File is a TOP output file, which consists of 2 types of unprocessable records. Type 1 will be corrected at the NMTOP application.

1. Data or file format errors

2. No Matches - 1 or more data items does not match the data in TOP.

  • The Unprocessable Error File is sent daily from TOP via SFTP to the NMTOP application.
  • The Unprocessable Error File that is received is validated for the right format, length and other basic edits.
  • Once the file has been validated, the file is loaded to the NMTOP database and a report is generated.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOPapplication. The audit logs are retained based on the Agency’s retention policy.

TOP Payment/Adjustment File

33: Process the TOP Payment/Adjustment File

  • The TOP Payment/Adjustment file is a TOP output file, which contains debt collection information.
  • The TOP Payment/Adjustment file is sent daily from TOP via SFTP to NMTOP.
  • The TOP Payment/Adjustment file that is received is validated for the right format, length and other basic edits.
  • If the edits are successful, the data is loaded into the NMTOP database via a load script. The data is encrypted in the database. The database resides on the NMTOP application. If the edits are not successful, the file is rejected and another file is requested from TOP.
  • The encrypted data is accessible via a user interface to authorized staff members only.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOP application. The audit logs are retained based on the Agency’s retention policy.

3.1.3.Outputs

Outputs from the NMTOP application include the following:

1.Offset/Update – TOP File: This file is an output of the NMTOPapplication, which consists of the delinquent debts in a format that is approved and accepted by TOP Program. This file is sent daily.

2.Unprocessable No Match File: This file is an output of the NMTOPapplication, which contains records or errors from the Offset/Updatefile. This file is sent as a report to correct the errors.

3.Abridged Payment/Adjustment File: This file is an output of the NMTOPapplication, which consists of the abridged payments and adjustments received from the TOP system.

4.View Data: This process allows authorized users view access to the FTI data and correct file errors.

5.Business Reports (Management, summary, and detailed reports): These reports are produced by the NMTOPapplication and only authorized users can create and view these reports because they contain FTI data. No printing of reports is allowed in the NMTOP Application.

6.Audit log reports (Management, summary, and detailed reports): These reports are produced by the NMTOPapplication and only authorized users can create, view and print these reports as the data that is reported is sensitive.

7.Backup NMTOP database: This process produces the backup media, which is stored in a secure location.

3.1.4.Output Activities

Offset/Update - TOP File

34: Process Offset/Update - TOP File

  • The Offset/Update - TOP file is a NMTOPapplication output file, which contains debt information.
  • A batch job generates the Offset/Update - TOPfile by reading data from the UIA using defined business rules to identify debts that can be certified.
  • The Offset/Update - TOPfile is sent from NMTOPapplication via SFTP to TOP.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOP application. The audit logs are retained based on the Agency’s retention policy.

Unprocessable No Match File (Error file)

35: Process Unprocessable No Match File from TOP

  • The Unprocessable No Match File is a TOP output file, which consists of the Unprocessable records.
  • The Unprocessable No Match File is sent daily from TOP via SFTP to the NMTOPapplication.
  • The Unprocessable No Match File that is received is validated for the right format, length and other basic edits.
  • Once the file has been validated, the file is loaded to the NMTOP database and the file is then transmitted via FTP protocol as an Excel report for manual processing by BPC Staff.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOP application. The audit logs are retained based on the Agency’s retention policy.

Abridged Payment/Adjustment File

36: Process the Abridged Payment File

  • A batch job is run on the NMTOPapplication to “abridge and secure” FTI data from the TOP database.
  • The Abridged Payment/Adjustment file with the “Abridged” FTI data is then sent to UIA using SFTP process.
  • UIA processes the file and the abridged data is now accessible via user interface. The payments and the reversals from TOP would be posted as cashier’s check in UIA. These payments and reversals will show up on the repayment screens.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOP application. The audit logs are retained based on the Agency’s retention policy.

View Data

37: View FTI Data

  • The data from the FTI database is available for view to select authorized users.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOP application. The audit logs are retained based on the Agency’s retention policy.

Business Reports

38: Generate Reports

  • Business Reports (Management, summary, and detailed reports). These reports are produced by the NMTOP application and only authorized users can create and view these reports because they contain FTI data.
  • The data from the FTI database is available for view/update to select authorized users.
  • Audit logs are created for all access activities. Audit logs are stored on the NMTOP application. The audit logs are retained based on the Agency’s retention policy.

Audit Logs

39: Create Audit Logs

  • Audit logs are created for all access activities.
  • Audit logs are stored on the NMTOP application.
  • The audit logs are retained based on the Agency’s retention policy.

Backup NMTOP Database

310: Backup NMTOP Database

  • A batch job is run nightly to back up the NMTOP database.
  • The backed up data base is encrypted and stored in an approved media.
  • The approved media is stored in a secure location.

3.2.Unemployement Insurance Application

3.2.1.Inputs

Inputs to the UIA system include the following:

1.Abridged Payment/Adjustment File: This file is a NMTOP output file. This is an input file to the UIA system. The Abridged Payment file includes the Claimant ID, amount and date of payment of the claimant whose tax refund has been offset by marked as electronic check.

2.ACH Transfer: This file is sent directly to the Agency’s bank. A manual reconciliation process balances the total payments by date to the funds received. The UIA system will match the amount and date of the ACH Transfer, entered by Finance staff, to the amount and date of the abridged payment/update file and will process the file if matched.If there is not a match a manual reconciliation will be done between the 2 files.

3.2.2.Input Activities

Abridged Payment/Adjustment File

312: Process the Abridged Payment/Adjustment File

  • The Abridged Payment/Adjustment file is produced by the NMTOP application. This is an input file to UIA systems.
  • The Abridged Payments file that is received from NMTOP application is validated for the right format, length and other basic edits.
  • The records in the file are processed based on the type (i.e., offsets or reversals). This entire process is automated and does not require a manual user application of offset payments and reversals. The automatic processing of offset payments and reversals enables the payment type and source to be “Cashier’s Check” and no user can differentiate if the payment came from TOP. This process ensures that no FTI data is transmitted to the system.
  • If the record type is an ‘offset’, then the payment amount is applied to the claimant based on business rules.
  • If the record type is a ‘reversal’, the adjustment process is performed on the claimant’s over payment(s) and claim balances.
  • Report(s) are created for payments and adjustments that are performed onclaims.

Bank ACH Transfer