GenTaxUpgrades CollectionBankruptcy Implementation Certification 051809

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					                Implementation
                  Request for Certification and Release of Funds Form
                               ALL CERTIFIED PROJECTS MUST FOLLOW NM STATE POLICIES AND PROCUREMENT CODE



 PROJECT NAME                         GenTax Upgrades – Collections/Bankruptcy

 PROJECT NUMBER                                                                  DATE                  5/18/09

 LEAD AGENCY                          TRD                                        AGENCY CODE           333

 OTHER AGENCIES                                                                   PROJECT PHASE        Implementation

 EXECUTIVE SPONSOR                    Phil Salazar

 PROJECT MANAGERS                     Jim Wastvedt/Charlene Trujillo

 AGENCY HEAD                          Rick Homans

 AGENCY CIO/IT LEAD                   Joel Matek



PROJECT DESCRIPTION (PROVIDE A BRIEF DESCRIPTION AND PURPOSE FOR THIS PROJECT)
Collections Upgrade will include upgrades to the collections functionality currently implemented at TRD.
It will eliminate some of the manual processes and provide new functionality to better meet requirements
set forth by federal collection statutes. Some of the new functions that will be implemented are: (1)
redesigned collection stage flows (2) automate collections assignments (3) collections of linked-accounts
(4) customer-level collections capability (5) new payment plans functionality (6) elimination of collection
processing conflicts (7) conversion of existing data to accommodate the new functionality.
Bankruptcy-EBN will add additional functionality to GenTax® to: (1) create bankruptcy cases (2)
maintain filing periods (3) add claims (4) add custom penalty and interest calculations (5) display assigned
cases (6) create case letters (7) track bankruptcy activities (8) and close bankruptcy cases.

The Taxation and Revenue Department (TRD) has implemented the GenTax system as the tax system of record
for New Mexico. GenTax is a commercial-off-the-shelf product provided by FAST Enterprises that delivers state
of the art integrated tax processing. GenTax is currently in production, processing revenue for 28 of the taxes
administered by New Mexico’s Taxation and Revenue Department.

The GenTax Upgrades – Collections/Bankruptcy project is part of TRD’s “Fair Share ROI initiative” - an
ongoing initiative within TRD to increase the effectiveness of Taxpayer compliance, and to generate additional
revenue for the State. By improving the Collection and Bankruptcy functionalities within GenTax application,
TRD will be further along in pursuing its strategic goals of increased taxpayer compliance, improved timeliness
and accuracy of reporting and better quality of service to its constituents.

The Taxation and Revenue Department (TRD) is requesting implementation of an upgrade for two separate areas
of functionality in GenTax. The bankruptcy manager in GenTax currently allows users to create new bankruptcy
cases, create proof of claims, monitor open cases and dismiss or discharge cases, all of which is done manually
upon receipt of paper notifications mailed to TRD. Electronic Bankruptcy Notification (EBN) is a system
designed to electronically notify all affected debtors and creditors about new bankruptcy petitions, confirmed
plans, court hearings, dismissals and discharges nationwide. An upgrade to the bankruptcy manager to include
EBN could allow some of these actions to be done systematically upon receipt of electronic notification.

This upgrade will also help ensure that taxpayers that are in bankruptcy are not contacted for collections once
they file bankruptcy. Currently there is a time lag from when a taxpayer files bankruptcy to when their account if
properly noted and flagged in the system to stop collection activity, which is required by federal bankruptcy
statutes.

The current collection staging flows were poorly designed which results in a small percentage of collection cases
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Revision: 2/14/08                                    Page 1
                       Implementation
                         Request for Certification and Release of Funds Form
                                          ALL CERTIFIED PROJECTS MUST FOLLOW NM STATE POLICIES AND PROCUREMENT CODE


being assigned. In addition, the current system requires a substantial amount of manual intervention resulting in
inefficient use of department resources. The requested upgrade would provide the following:
      Upgrade the collection functionality to redesign collection stage flows
      Automate the assignment of collection cases
      Allow for a single collection to track debt for multiple linked accounts
      Improved reporting capabilities

These upgrades will allow for more efficient use of department resources including less waste of paper, time
spent processing, storing and destroying paper and space needed to store file cabinets; and improved collection
functionality requiring less manual intervention and increased assurance that all collection cases are being
worked. TRD desired outcomes include improving productivity and achieving cost savings, which will result in
additional time for employees to spend on post-petition compliance activity and collections.

The cost of not doing these projects can be translated into the following consequences: inaccurate collections that
could lead to litigation, audit exceptions, and under/over payment of funds; increased costs and delays would
result from reliance on manual processes; failure to comply with statutory or regulatory requirements.
Planned Start Date                        07/15/20091            Planned End Date                      06/15/2010
Amount Requested this Certification                     $1,075,000
Amount Previously Certified                             $107,500
Remaining Appropriation not                             $1,075,000
Certified
Total Appropriated Amount (include                      $1,182,500
any new funds)




    CERTIFICATION HISTORY (INCLUDE ANY PREVIOUS PROJECT OR PHASE CERTIFICATIONS)

             Date                       Amount                     Funding Source(s) (use specific citations to laws, grants, etc.)
    04/22/2009                 $107,500                       Laws of 2009, Chapter 124, Section 7, Item 2




    PROPOSED CERTIFICATION SCHEDULE FOR CURRENT FISCAL YEAR (AGENCY TO COMPLETE FOR ALL PHASES)
    Phases                             Amount                    Major Deliverable(s) / Performance Measure(s)                Due
                                      Requested                                                                               Dates
    Initiation:                  $107,500                                Contract for IV&V Services                       06/2009
    Planning:
                                                                         Execute contract with Fast Enterprises, LLC      06/2009
                                                                         Develop acceptance criteria
    Implementation:
                               $1,075,500                                Implement GenTax Upgrades –
                                                                          Collections/Bankruptcy functionality in          07/2010


1
    This start date is tentative, based on project certification and execution of contract with Fast Enterprises, LLC.
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Revision: 2/14/08                                                   Page 2
                      Implementation
                        Request for Certification and Release of Funds Form
                                       ALL CERTIFIED PROJECTS MUST FOLLOW NM STATE POLICIES AND PROCUREMENT CODE


                                                                    Production.




    Closeout:

    APPROPRIATION HISTORY (INCLUDE ALL FUNDING SOURCES, E.G. FEDERAL, STATE, COUNTY, MUNICIPAL LAWS OR GRANTS)

        Fiscal Year               Amount                                             Funding Source(s)
    FY10                     $1,182,5002            Laws of 2009, Chapter 124, Section 7, Item 2




    BUDGET

    Comments:

                       Description              FY09 & Prior             FY10              FY11
    Staff -
    Internal

    Consulting        IV&V:                                         $107,500
    Services
                      FAST:                                         $1,075,000
    Hardware

    Software


       TOTAL
                                                                    $1,182,500




    IT SYSTEM ANALYSIS
    The GenTax Upgrades – Collections/Bankruptcy modules 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.

    There will be no additional network impact as it will be configured into existing code and will not cause
    any additional processing.
    The production GenTax® system is currently being housed at the DoIT Data Center. The new GenTax
    Upgrades – Collections/Bankruptcy modules 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

2
    NOTE: Multiple projects in Fair Share Initiative (DW, GenTax, ECM) were lumped together into single appropriation of $1,832,500.
                      This is a controlled document, refer to the document control index for the latest revision
Revision: 2/14/08                                              Page 3
                Implementation
                  Request for Certification and Release of Funds Form
                               ALL CERTIFIED PROJECTS MUST FOLLOW NM STATE POLICIES AND PROCUREMENT CODE


 configuration to the existing production application and database servers during off hours. The anticipated
 dates to move the application into production is June 15, 2010. 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.




 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 GSD/ISD 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 GSD/ISD data center.



 INDEPENDENT VERIFICATION & VALIDATION (INCLUDE SUMMARY OF THE LATEST IV & V REPORT)
 IV&V functionality will be incorporated throughout the implementation of this project. TRD is executing a
 contract with a vendor from the Statewide Price Agreement. We anticipate using the same vendor working
 on other GenTax projects to improve ramp-up time, and continue with a vendor that already understand
 GenTax processes and staff.
 The IV&V contract has already been reviewed by DoIT; per DoIT recommendation, we will execute the
 IV&V and Implementation contracts simultaneously to avoid timing issues leading to lack of IV&V
 coverage.

                This is a controlled document, refer to the document control index for the latest revision
Revision: 2/14/08                                   Page 4
                Implementation
                  Request for Certification and Release of Funds Form
                               ALL CERTIFIED PROJECTS MUST FOLLOW NM STATE POLICIES AND PROCUREMENT CODE




 SIGNIFICANT RISKS AND MITIGATION STRATEGY
  Risk 1: The possible risks to TRD and the state of New Mexico by not actively managing
     electronic bankruptcy records: inability to retrieve business critical information on a daily
     or historic basis or increased costs of doing business from inefficiencies related to
     disparate or inaccessible data
 MITIGATION 1: Risks are minimized by using COTS application already in place; and also
 through employing vendor with successful track record within TRD (FAST Enterprises and
 GenTax system with multiple successful rollouts).
 Risk 2: Inaccurate collections lead to litigation, audit exceptions, and under/over payment of
     funds
 MITIGATION 2: Risks are minimized by using the GenTax Backend Revenue Accounting
     system in conjunction with the Collections system will aid in keeping records complete
     and accurate which will provide for minimal risk.

 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. 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



 MAINTENANCE STRATEGY (DESCRIBE HOW THE AGENCY PLANS TO MAINTAIN THIS PROJECT AFTER DEPLOYMENT)
 GenTax® is the tax processing application of record. Since the Tax Increment Financing functionality will
 be configured within the existing GenTax® application, current maintenance and support methodologies of
 GenTax® will apply.



 INTEROPERABILITY (DESCRIBE HOW THIS PROJECT INTERFACES WITH EXISTING SYSTEMS/APPLICATIONS WITHIN THE AGENCY)
 GenTax® is the tax processing application of record. Since the Tax Increment Financing functionality will
 be configured within the existing GenTax® application, both will function within the current table, code, and
 interface structures.


                This is a controlled document, refer to the document control index for the latest revision
Revision: 2/14/08                                   Page 5
                Implementation
                  Request for Certification and Release of Funds Form
                               ALL CERTIFIED PROJECTS MUST FOLLOW NM STATE POLICIES AND PROCUREMENT CODE



                                                  Exhibit 1




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Revision: 2/14/08                                   Page 6

				
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