Request for Certification and Release of Funds Form

All Certified Projects Must Follow NM State Policies and Procurement Code

Initiation / Planning / Implementation / Closeout

Project Name

/ NMWebFile – Online Data Capture
Project Number / Date / 7/30/07
Lead Agency / Taxation and Revenue Department / Agency Code / 333
Other Agencies

Executive Sponsor

/ Dona Cook
Project Manager / Ron Martinez
Agency Head / Jan Goodwin – Cabinet Secretary
Agency CIO/IT LEAD / Marlin Mackey
Project Description (Provide a brief description and purpose for this project)
NMWebFile is an existing Enterprise scale application infrastructure created and hosted by the Taxation and Revenue Department (TRD).
This project will allow the TRD to leverage the technology invested in this infrastructure to expand the number of tax applications available to internal and external clients for online data submission. It also proposes to deliver analytical and reporting resources to help begin to translate data to information.
Key benefits from deploying these deliverables include automating a “Paper-only’ process currently using in-house data entry to an external online solution transferring data entry effort from internal staff to the taxpayer users improving data quality through online business rule validations. Additional value will come from data cross-matching capabilities with multiple business unit data being available on one system. This will also allow TRD to replace legacy out-of-service-life software and hardware data capture solutions.
Planned Start Date / August 15, 2007 / Planned End Date / June 30, 2008

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

This project will help deliver results directly applicable to our agency Mission and Vision Statement: “The mission of TRD is to administer and enforce New Mexico’s tax and revenue laws, and vehicle and driver licensing code in a manner warranting the highest degree of public confidence. Our vision is to be the most responsive, technologically advanced and highly respected agency in State Government…”
NMWebFile has integrated role-based security and core data capture processing technology. This provides for capturing constituent client tax and fee data online or for larger clients through bulk file data submission. This project proposes to deliver the following elements and benefits to additional business unit tax and fee programs:
·  Online interactive data validation which will improve tax program data quality
·  E-Payment capability to include e-Check and Credit Card to increase the speed in which taxpayer payments may be deposited as well as providing additional filing convenience options to our constituent clients.
·  Provide client convenience features which will allow for pre-populating of a client’s ‘Filer’ webpage simplifying the data submission process and making the online solution the preferred filing solution.
·  Integrate a Wizard Information page builder that will allow business unit staff to create their own information elements which will be rendered on each webpage offering HELP elements, FAQ pages, Instruction pages, and Business Unit Contact sheets.
·  Introduce automation to tax programs that historically have been “Paper-Only” filing solutions to reduce the agency data entry costs while introducing standard NMWebFile online tools and features.
·  Replace the 10-plus year old internal DCR hardware/software data capture solution with an interactive online enterprise solution.
·  Create foundation data reporting and analysis tools for one-click access to Management Statistics - by business unit, and for parameter-driven inquiry tools to support agency HelpDesk, Audit and Compliance, and Tax Fraud data research needs.
·  Review and upgrade, as necessary, existing NMWebFile modules to ensure that security and core data processing components remain compatible with newer modules.
·  Proposed Business Unit Tax and Fee Programs to be added:
o  Combined Fuel Tax – 3 sub-programs (CFT, Retailer, Rack)
o  Personal Income Tax (PITNet) 2007
o  Cigarette Tax
o  Liquor Tax
·  Agency Client HelpDesk enhancements for online applications that will support these programs
·  RPD Data Capture (DCR – internal data entry – multiple tax programs) – internal data capture from paper to digital
Total Appropriated Amount (include any new funds) / $250,000 / Amount Previously Certified / $0
Requested Amount this Certification / $250,000 / Remaining Appropriation not Certified / $250,000

Certification History (Include any previous project or phase certifications)

Date
/ Amount / Funding Source(s) (use specific citations to laws, grants, etc.)
N/A
Proposed Certification Schedule for Current Fiscal Year (agency to complete for all phases)
Phases / Amount Requested /

Major Deliverable(s)

/

Due Dates

Initiation:
Planning:
Implementation: / New Tax Program Expansion
Project Phase(s) / $12,500
$50,000
$150,000 / Business Unit Requirements Gathering (internal staff)
Project Management Plan (internal staff)
IV&V Contract
Architectural Design
Application Development / 8/15/07
8/15/07-ongoing
9/115/07
11/01/07
5/31/08
Closeout: / Application delivery
Project Phase(s) / $37,500 / IV&V Final Report
User Acceptance Testing (internal staff)
Business Unit Sign-off
Production Deployment / 5/31/08
5/1/08
6/1/08
6/15/08

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

Fiscal Year
/ Amount / Funding Source(s)
FY08 / $250,000 / NM: Laws of 2007, Ch 28, Section 4, Subsection C
Budget
Comments:
Description
/

FY05

/ FY06 / FY07 / FY08 / FY09
Staff - Internal
/ $ 80,000
Consulting Services / $250,000
Hardware
Software
Total / $330,000

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

IV&V will be included in this project and is estimated to require approximately 5% of the project budget. Third party validation will focus on making sure the project is documented, source code and data schema are backed up, and that testing and bug-tracking (change management) are completed according to the project plan and business rule requirements. We will select a vendor from the State Price Agreement and execute a contract before project implementation.

Significant Risks and Mitigation Strategy

Risk 1: Design and development staff (50% contracted) can find alternative employment leaving the development team and project understaffed.
Mitigation 1: Integrate knowledge transfer and documentation into the development process to ensure that new developers can quickly understand the current state and continue development. Also, create regular versioning and backup of source code and database schema on Visual Source Safe. Finally, provide ongoing knowledge transfer to team members to assure the team understands the technology and design on which the project is built.
Risk 2: Source code delivered today can easily be outdated tomorrow requiring substantial modification to continue to provide online services.
Mitigation 2: Require as part of the design that code is developed using modular programming. With this, when a module needs to be updated, the remaining system is fully functional and business continuity is supported. Require Object Oriented Design (OOD) and development as a standard within the project.

Security Strategy (Summarize Plan for Security, Backup and Disaster Recovery)

Business Unit tax program additions resulting from the implementation of this project will be rolled in to the existing Unified Login Service (ULS) to provide role-based access for internal or external users, as appropriate. As part of ULS security “Client Transaction History” will also be an included feature.
Security is governed by core processes existing on NMWebFile’s established infrastructure. Adding new features and additional business unit tax programs will not require additional processing hardware or security changes.
Source code for new applications and client data will be backed up and or restored based on the existing standard for current NMWebFile resources. System backup tapes are delivered to SRCA on a weekly basis.

Consolidation Strategy (Summarize Collaboration Efforts and Plans with Other Agencies)

Other NMWebFile project efforts have allowed collaboration including work with Department of Labor (Department of Workforce Solutions), Workers Compensation Administration, and Department of Public Safety. All development efforts in this project expansion are for the Taxation and Revenue Department. The existing enterprise architecture will remain in place to allow this system to develop data capture and possible data sharing solutions for other business units and agencies in future projects.

Record Retention Policy (Describe the Agency’s records retention requirements for this project)

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. The TRD records retention plan is filed with State Records Center & Archives.
Our business objective is to capture and validate client data. Once accepted it is passed on to GenTax (our system of record) for processing. Any archive copies are expected to be forwarded to the TRD Data Warehouse. In both situations, GenTax and the Data Warehouse manage the records retention process, according to the current record retention policies already in place. No changes are required for this project.

Maintenance Strategy (Describe how the agency plans to maintain this project after deployment)

TRD has historically built, tested, and deployed applications from within an information technology support team. Maintenance was then left to the business unit support staff who built the system. With NMWebFile, system modules for various business units are built per business requirements and legacy system criteria. Once User Acceptance Testing (UAT) has been completed the NMWebFile development team moves on to the development of new applications for other business units. Our strategy provides for these newly delivered applications to be assigned to business unit (e.g. MVD) technical support teams who will coordinate maintenance and modifications with business unit management. After the tax programs are deployed, TRD IT staff will maintain the applications.

Interoperability (Describe how this project interfaces with existing systems/Applications within the agency)

NMWebFile is built as a data validation and data capture solution. Two key infrastructure systems upon which it relies are databases and data processing. System design fundamentally requires integration of databases for data storage as well as for the use of stored procedures (SPROCS) to transfer data between data tiers.
In part, business rule validation is inherited from data schema defined within TRD databases for each business unit. To process the data, in this case through TRD’s GenTax system, taxpayer data must meet the validation requirements through real-time system communication between GenTax validation look-up tables, TRD database requirements and NMWebFile data capture transactions. This coordinated network system then becomes the framework for downstream process, helpdesk research functionality, and client transaction history.
Cost Benefit Analysis (Forecast the tangible and intangible life-cycle costs for five years, quantify the return on Investment (roi) and provide assumptions used in calculations)
Comments: This project will reduce the paper data entry cost and improves data quality. The benefit to the constituent is convenience of online filing with electronic payment capability.
Benefits /
Cost
/

ROI (Y1)

/

ROI (Y2)

/

ROI (Y3)

/

ROI (Y4)

/

ROI (Y5)

Total
Business Performance Measures for Project Life-Cycle (Complete for all phases)
Phases / Date /

Goals/Objectives/Outcomes

Initiation
Planning
Implementation / 6/08 / Goals:
·  Expand the number of tax programs using NMWebFile’s enterprise data capture system.
·  Automate current “Paper-only” systems.
·  Replace legacy hardware/software data capture solutions with an agency proven enterprise solution.
Objective:
·  Improve and expand online client services
·  Incrementally transfer task of data entry to external clients from current agency staff to reduce cost associated with data entry
·  Decrease dependency on legacy applications
·  Reduce data entry errors through improved data validation elements in new applications
Outcomes:
·  Streamline data capture process to extract additional incremental value from technical infrastructure investments.
·  Migrate high-volume data filers such as CPA’s and payroll processors to multi-client bulk file solutions.
·  Redeploy data entry staff to higher level client service roles.
·  Provide a foundation for data cross matching with additional value from data mining, business intelligence, and statistics for comparative analysis across tax programs and tax years.
Closeout
POCD Certification Committee Recommendation
Certification Request: The POCD recommends approval of the TRD project contingent on an IV&V contract.
DOIT Certification Committee Recommendation
Comments:
State Chief Information Officer Approval


Project Governance

Governance Overview

Deliverables for this project will be defined by project prioritization established by the Executive Sponsors. Currently that priority is: 1. Combined Fuel Tax, 2. PIT 2007, 3. Cigarette Tax, and 4. Liquor Tax, 5. Data Analysis. From an architectural perspective, each component will be designed and developed to meet the enterprise standards provided for within the NMWebFile architecture.

Project component scope will be defined by business unit-defined business requirements, existing data base structures, and available paper forms or website applications.

Change management will be driven by technical issues discovered within the FogBugz Bug Tracking system as well as from feedback of prototype demonstrations where requested by and defined by the business unit management team. User Acceptance Testing (UAT) will be the third contributor to requests for changes in a pre-production application.


Project Implementation Plan

(This process iterates for each of the Tax Programs being developed)

Project Timeline


Project Security and Business Continuity / Disaster Recovery

This is described above on page 5.
Projected Annualized Client e-Transactions & Bandwidth

Business Unit / Average Pages per form / Filing Periods / Client Count / Projected Page Transaction Count (Annualized) / Page Size
75k / SubTotal
k-byte / Total
MgByte
CFT / 50 / 12 / 350 / 210,000 / 75 / 15,750,000 / 15,381
Retail / 2 / 12 / 5000 / 120,000 / 75 / 9,000,000 / 8,789
Rack / 20 / 12 / 15 / 3,600 / 75 / 270,000 / 264
PITNet 2007 / 4 / 1 / 102000 / 408,000 / 75 / 30,600,000 / 29,883
DCR / 2 / 12 / 50000 / 1,200,000 / 75 / 90,000,000 / 87,891
Cigarette Tax / 175 / 12 / 50 / 105,000 / 75 / 7,875,000 / 7,690
Liquor Tax / 4 / 12 / 83 / 3,984 / 75 / 298,800 / 292
150,189

Projected Network Bandwidth Consumption Narrative

As a general statement related to bandwidth, the number of tax returns processed will not grow significantly over the next few years. Growth is estimated to be arithmetic with an estimated 5-10% growth rate. The largest change in use of bandwidth, however, is that data electronic submission of tax data will migrate from internal data capture systems to external data capture systems. From a process perspective most of the data will now be keyed-in near the filing deadline date. The old process has paper arriving by the filing deadline and it is keyed-in over then next few weeks. Functionally, this provides for capturing and transferring data in a significantly shorter timeframe each filing period than was previously experienced using the in-house paper method.