New Mexico Treasury Offset Program (NMTOP) Presented to Project Certification Committee New Mexico Department of Workforce Solutions Sue Anne Athens, CIO October 23, 2013 Agenda • • • • • • • • Project Purpose Business Objectives Technical Objectives Budget Schedule Scope Lessons Learned Incorporated into this project Questions Current Status • • • • • • • • Initiation, Planning & Implementation Certification Request for Implementation Phase Completed security safeguard review of design and planning Design 80% complete – database, NM TOP initial design, interface specifications, updates to UIA, associated correspondence Testing completed with Treasury UIA letter/correspondence sent in October Unit testing in progress through November End to end testing/training schedule for December Purpose • • • • 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. 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/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. Business Objectives • • • NMDWS will significantly improve its collection rate for both fraud and non-fraud overpayments as well as for underpaid tax assessments including associated penalty and interest owed. NMDWS currently collections $3,401,580 annually as a result of its collections process. It is anticipated that collection will improved by 5% in the first year of operation and increase 3% annually in the subsequent 3 years. Technical Objectives • • Build systems architecture to ensure compliance with IRS safeguards Integrate data exchange with Unemployment Insurance Application. Budget – Planning Phase Budget Category Cost CONTRACTOR MONTHLY $250,000 IT EQUIPMENT $125,000 TEMPORARY STAFF $19,864 MISCELLANEOUS $5,000 TOTAL $399,864 Note: Federal Funding Received via Supplemental Budget Request Schedule Schedule NM TOP Timeline 3/4/2013 - 8/2/2013 Requirements/Design 10/15/2012 - 11/9/2012 Planning/Preparation 1/1/2013 10/14/2012 11/12/2012 - 2/28/2013 Prepare SPR Report for IRS 4/1/2013 7/1/2013 8/5/2013 - 12/13/2013 Development & Testing 10/1/2013 12/16/2013 - 1/20/2014 Implementation 1/1/2014 1/20/2014 Scope • • • The NMTOP Application: This is a new, segregated and secured application 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 the current, Unemployment Insurance Application (UIA). NMTOP will have all of the required security as defined in the Safeguards Procedures Report (SPR) and will reside on a secure standalone server. Incorporated “Lessons Learned” in Other States • • • Consulted with other States who have implemented the project Reviewed base code, held meetings, became familiar with timeline Result: – Designed NM TOP outside the UIA in firewalled zone to ensure IRS requirements did not float down to the UIA – Ramped up testing with Department of Treasury earlier in the process Questions Questions from the Committee?