Barts: UI Claims Audit, Overpayment, and Audit System

BARTBARTS:: UIUI CCLAIMS AAUDIT,, OOVERPAYMENT,, AND AUDIT SYSTEM

PPROJECT CCHARTER FFOR CCERTIFICATION

EXECUTIVE SPONSOR – NEIL MEONI

BUSINESS OWNER - CHARLES MATHER

PROJECT MANAGER – TBD

ORIGINAL PLAN DATE: MARCH 15, 2010

REVISION DATE:

REVISION: 1

ABOUT THIS PROJECT CHARTER DOCUMENT

PERMISSION TO PLAN THE PROJEC T AND SETTING THE GOVERNANCE STRUCTURE The Project Charter provides the project manager and project team with permission to proceed with the work of the project, within the scope delineated in this document. The Project Charter should be the outcome of a number of documents that went into the pre-planning for the project, and in many cases the agency IT Plan, Business Case for appropriations, Federal funding requests and the like. Project sponsors sign the Project Charter signifying that they have agreed to the governance structure for guiding the direction for the further planning of the project, discovery and defining the requirements, acquiring necessary resources, and within that context the statement of work for any related contracts including a contract for the Independent Validation and Verification. The Project Charter is also the foundation for the creation of the project management plan, and much of the thinking and writing for this charter will be immediately usable for that project management plan.

PROJECT CERTIFICATION INITIAL PHASE DOCUMENTATION The Project Charter is also used within the State of New Mexico IT Project Certification process as evidence of the project’s worthiness for the Initial Phase certification. The Initial Phase certification is especially critical to many state and agency projects because of its related release of the initial funds required for the project.

Initiation Phase funding is requested by an agency for use in developing project phases, developing Independent Verification and Validation (“IV&V”) plan and contract; address project review issues and/or to develop an overall project management plan. Note: Waiver of the IV&V requirement requires specific written approval by the Secretary of the DoIT. DoIT “Project Certification” Memorandum July 2, 2007

The Project Charter and the Request for Certification Form are meant to provide a comprehensive picture of the project’s intention and initial planning, that includes the project’s place in the context of the State of New Mexico’s IT Strategic Plan, Enterprise Architecture, and DoIT project oversight process. See “IT Project Oversight Process” Memorandum July 5th 2007 on the OCIO-DoIT web site.

I TABLE OF CONTENTS

ABOUT THIS PROJECT CHARTER DOCUMENT...... I

TABLE OF CONTENTS...... II

1. PROJECT BACKGROUND...... 1

1.1 EXECUTIVE SUMMARY -RATIONALE FOR THE PROJECT...... 1 1.2 SUMMARY OF THE FOUNDATION PLANNING AND DOCUMENTATION FOR THE PROJECT...... 1 1.3 PROJECT CERTIFICATION REQUIREMENTS...... 1 2.0 JUSTIFICATION, OBJECTIVES AND IMPACTS...... 1

2.1 AGENCY JUSTIFICATION...... 1 2.2 BUSINESS OBJECTIVES...... 2 2.3 TECHNICAL OBJECTIVES...... 2 2.4 IMPACT ON ORGANIZATION...... 2 2.5 TRANSITION TO OPERATIONS...... 2 3.0 PROJECT/PRODUCT SCOPE OF WORK...... 3

3.1 DELIVERABLES...... 3 3.1.1 Project Deliverables...... 3 3.1.2 Product Deliverables...... 5 3.2 SUCCESS AND QUALITY METRICS...... 6 4.0 SCHEDULE ESTIMATE...... 6

5.0 BUDGET ESTIMATE...... 6

5.1 FUNDING SOURCE(S)...... 6 5.2. BUDGET BY MAJOR DELIVERABLE OR TYPE OF EXPENSE -...... 7 5.3 BUDGET BY PROJECT PHASE OR CERTIFICATION PHASE...... 7 6.0 PROJECT AUTHORITY AND ORGANIZATIONAL STRUCTURE...... 7 6.1 STAKEHOLDERS...... 7 6.2 PROJECT GOVERNANCE PLAN...... 7 6.3 PROJECT MANAGER...... 7 6.3.1 PROJECT MANAGER CONTACT INFORMATION...... 7 6.3.2 PROJECT MANAGER BACKGROUND ...... 7 6.4 PROJECT TEAM ROLES AND RESPONSIBILITIES...... 7 6.5 PROJECT MANAGEMENT METHODOLOGY ...... 8 7.0 CONSTRAINTS...... 8

8.0 DEPENDENCIES...... 8

9.0 ASSUMPTIONS...... 9

10.0 SIGNIFICANT RISKS AND MITIGATION STRATEGY...... 9

11.0 COMMUNICATION PLAN FOR EXECUTIVE REPORTING...... 9

12.0 INDEPENDENT VERIFICATION AND VALIDATION - IV&V...... 9

II 13.0 PROJECT CHARTER AGENCY APPROVAL SIGNATURES...... 11

14.0 PROJECT CHARTER CERTIFICATION APPROVAL SIGNATURE...... 11

Revision History

REVISION NUMBER DATE COMMENT 1.0 January 14, 2010 Original Project Charter Draft

IV PROJECT CHARTER – BARTS 1

1. PROJECT BACKGROUND

The project background section is meant to provide the reviewer with a picture of the development of the project from inception to its being submitted for certification.

1.1 EXECUTIVE SUMMARY -RATIONALE FOR THE PROJECT New Mexico Department of Workforce Solutions is on a corrective action from the US Department of Labor for Overpayment Establishment, a CORE Measure. BARTs is a one stop resolution for automating the Unemployment Insurance Overpayment Detection, Establishment and Collection Process. BARTs will provide Audit, Fraud, and Overpayment monitoring capability to the agency. This system will improve the functionality and efficiency in which payment errors can be identified and collected. BART’s design is to monitor Unemployment Insurance Claims transactions.

1.2 SUMMARY OF THE FOUNDATION PLANNING AND DOCUMENTATION FOR THE PROJECT The BARTs project charter is a living document and will provide high-level information for the project budget, planning, and governance. More detailed project activity such as business requirements and activities will be managed through the project management plan and system requirements documents.

1.3 PROJECT CERTIFICATION REQUIREMENTS Does the project fit into the criteria for certification? Which and how? CRITERIA YES/NO EXPLANATION Project is mission critical to the agency Yes Overpayment establishment is a Core Measure that must be met by NMDWS UI Quality Control and Benefit Payment Control Sections Project cost is equal to or in excess of Yes Purchase of software, $100,000.00 installation, and perpetual license agreement is $1,337,000 through On Point Technology. Included in this cost are also hardware, project

PROJECT CHARTER – BARTS 2

management, and IV&V. Project impacts customer on-line access No This is an internal use only solution. Project is one deemed appropriate by the Yes Improves agency Secretary of the DoIT stewardship of claims benefits. Will an IT Architecture Review be required? Yes To be presented prior to the Implementation Phase of certification .

2.0 JUSTIFICATION, OBJECTIVES AND IMPACTS

The justification and objectives section relates the project to the purpose of the lead agency and describes the high level business and technical objectives for the project. The section also includes a high level review of the impact to the organization, and of the concerns for transition to operations.

2.1 AGENCY JUSTIFICATION IDENTIFY AGENCY MISSION, PERFORMANCE MEASURE OR STRATEGIC GOALS TO BE ADDRESSED THROUGH THIS PROJECT NUMBER DESCRIPTION AGENCY ETA HANDBOOK 336, STATE QUALITY SERVICE PLAN IDENTIFIES OVERPAYMENT, DETECTION AND RECOVERY AS A CORE MEASURE THAT MUST BE MET ANNUALLY FOR UNEMPLOYMENT INSURANCE PERFORMANCE. NEW MEXICO DEPARTMENT OF WORKFORCE SOLUTIONS, UI BUREAU IS CURRENTLY ON A CORRECTIVE ACTION FOR FAILING TO MEET THE DETECTION PORTION OF THIS MEASURE. PURCHASE AND INSTALLATION OF THE BARTS SOFTWARE WILL ALLOW NMDWS, UI BENEFIT PAYMENT CONTROL SECTION TO AUTOMATE THE OVERPAYMENT ESTABLISHMENT AND COLLECTION PROCESS.

2.2 BUSINESS OBJECTIVES USE THE FOLLOWING TABLE TO LIST MEASURABLE BUSINESS OBJECTIVES NUMBER DESCRIPTION BUSINESS INCREASE THE NUMBER OF UNEMPLOYMENT INSURANCE OBJECTIVE 1 OVERPAYMENTS IDENTIFIED IN A TIMELY MANNER TO MEET THE USDOL CORE MEASURES. BUSINESS AUTOMATE THE OVERPAYMENT IDENTIFICATION AND OBJECTIVE 2 CLAIMANT NOTIFICATION PROCESS BUSINESS INCREASE THE IDENTIFICATION OF OVERPAYMENT, OBJECTIVE 3 FRAUD, AND AUDIT CANDIDATE CLAIMANTS.

2.3 TECHNICAL OBJECTIVES

NUMBER DESCRIPTION TECHNICAL PROVIDE A COTS SOLUTION THAT WILL LIMIT THE OBJECTIVE 1 DEMAND ON IN-HOUSE STAFF RESOURCES TO DESIGN AND DEVELOP ADHOC SOLUTIONS FOR IDENTIFYING CLAIMS OVERPAYMENT, FRAUD, AND AUDITS.

2.4 IMPACT ON ORGANIZATION The impacts on the organization are areas that need to be addressed by the project through its planning process. They may not be internal project risks, but they can impact the success of the project’s implementation. AREA DESCRIPTION END USER THE DWS BENEFIT PAYMENT CONTROL SECTION (BPC) INDIVIDUAL WORKLOAD ASSIGNMENTS WILL BE DECREASED BY AT LEAST 70% THROUGH THE USE OF BARTS. RESOURCES CAN BE REDIRECTED TO MANAGING COLLECTION AND COMPLIANCE EFFORTS. TIMELY ESTABLISHMENT OF OVERPAYMENTS WILL BE INCREASED ALLOWING BPC TO MEET THE USDOL DESIRED LEVELS OF ACHIEVEMENT FOR THEIR CORE

AREA DESCRIPTION MEASURE. BUSINESS NOTIFICATION OF CLAIMANTS WITH OVERPAYMENTS PROCESSES WILL BE AUTOMATED TO ALLOW FOR TIMELY COMMUNICAATIONS BETWEEN CLAIMANT AND NMDWS. NATIONAL DIRECTORY OF NEW HIRES CROSSMATCH WILL BE AVALIABLE ALLOWING FOR EARLY IDENTIFICATION OF CLAIMANTS WORKING WHILE RECEIVING UI PAYMENTS ADDITIONAL CROSSMATCHES WITH OTHER STATE AGENCES CAN BE ESTABISHED AND PERFORMED IN A TIMELY MANNER ALLOWING FOR IDENTIFICATION OF FRAUDULENT COLLECTION OF UI PAYMENTS

IT OPERATIONS AND THIS WILL BE DETERMINED IN THE PLANNING PHASE. STAFFING OTHER QUALITY CONTROL SECTION WILL BE ABLE TO PERFORM NATIONAL DIRECTORY OF NEW HIRE CROSSMATCHES FOR WEEKLY UI CLAIMS SAMPLE FROM THE DESKTOP RATHER THAN REQUIRING A SEPARATE BATCH RUN BY IT.

2.5 TRANSITION TO OPERATIONS The transition to operations areas include items that are asked in the certification form to assure that the project has accounted or will account for these matters in its planning and requirements specifications. AREA DESCRIPTION PRELIMINARY INITIAL DESIGN AND DEPLOYMENT IS PROPOSED AT THE OPERATIONS DWS DATA CENTER. AS STATE ENTERPRISE SOLUTIONS LOCATION AND ARE IMPLEMENTED, THIS SYSTEM CAN BE EVALAUTED STAFFING PLANS FOR MIGRATION TO A DOIT DATA CENTER IN ALBUQUERQUE. DATA SECURITY, DATA IS STORED WITH UI CLAIMS DATA AND BACKED UP BUSINESS NIGHTLY. DATA IS FOR INTERNAL USE ONLY AND IS CONTINUITY PROTECTED WITHIN IN THE SYSTEM BY A FIREWALL AND

AREA DESCRIPTION INTRUSION DETECTION SOFTWARE. MAINTENANCE THIS WILL BE DETERMINED IN THE PLANNING PHASE OF STRATEGY THE PROJECT. INTEROPERABILITY SYSTEM DESIGN WILL BE INTEGRATED WTH EXISTING UI CLAIMS DATA AND PROCESSING. RECORD RETENTION USES DATA FROM THE EXISTING UI CLAIMS SYSTEM. THIS SYSTEM DOES NOT CREATE IT’S OWN RECORDS CONSOLIDATION INITIAL DESIGN AND DEPLOYMENT IS PROPOSED AT THE STRATEGY DWS DATA CENTER. AS STATE ENTERPRISE SOLUTIONS ARE IMPLEMENTED, THIS SYSTEM CAN BE EVALAUTED FOR MIGRATION TO A DOIT DATA CENTER IN ALBUQUERQUE.

3.0 PROJECT/PRODUCT SCOPE OF WORK

In its efforts to move from the high level business objectives to the desired end product/service the project team will need to deliver specific documents or work products. The State of New Mexico Project Management Methodology distinguishes between the project and the product. Project Deliverables relate to how we conduct the business of the project. Product Deliverables relate to how we define what the end result or product will be, and trace our stakeholder requirements through to product acceptance, and trace our end product features and attributes back to our initial requirements

3.1 DELIVERABLES

3.1.1 PROJECT DELIVERABLES This initial list of project deliverables are those called for by the IT Certification Process and Project Oversight memorandum, but does not exhaust the project deliverable documents Project Charter The Project Charter for Certification sets the overall scope for the project, the governance structure, and when signed is considered permission to proceed with the project. The Project Charter for Certification is used to provide the Project Certification Committee with adequate knowledge of the project and its planning to certify the initiation phase of the project

Certification Form The Request for Certification and Release of Funds form is submitted when a project goes for any of the certification phases. It deals with the financial aspects of the project, as well as other topics that indicate the level of planning that has gone into the project. Many of the questions have been incorporated into the preparation of the project charter Project Management Plan “Project management plan” is a formal document approved by the executive sponsor and the Department and developed in the plan phase used to manage project execution, control, and project close. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and documents approved scope, cost and schedule baselines. A project plan includes at least other plans for issue escalation, change control, communications, deliverable review and acceptance, staff acquisition, and risk management. plan.” “ Independent verification and validation (IV&V)” means the IV&V Contract & Reports process of evaluating a project to determine compliance with specified requirements and the process of determining whether the products of a given development phase fulfill the requirements established during the previous stage, both of which are performed by an organization independent of the lead agency. Independent verification and validation assessment reporting. The Department requires all projects subject to oversight to engage an independent verification and validation contractor unless waived by the Department.

IT Service Contracts The Department of Information Technology and the State Purchasing Division of General Services have established a template for all IT related contracts. Risk Assessment and The DoIT Initial PROJECT RISK ASSESSMENT template management which is meant to fulfill the following requirement: “Prepare a written risk assessment report at the inception of a project and at end of each product development lifecycle phase or more frequently for large high-risk projects. Each risk assessment shall be included as a project activity in project schedule.” Project Oversight Process memorandum

Project Schedule A tool used to indicate the planned dates, dependencies, and assigned resources for performing activities and for meeting milestones. The defacto standard is Microsoft Project

Monthly Project Status Project status reports. For all projects that require Department Reports to DoIT oversight, the lead agency project manager shall submit an agency approved project status report on a monthly basis to the Department. Project Closeout Report This is the Template used to request that the project be officially closed. Note that project closure is the last phase of the certification process

3.1.2 PRODUCT DELIVERABLES The product deliverable documents listed here are only used for illustration purposes Requirements Documents Description – Business Use Cases will be completed by On Point Technology and USDOL Benefit Payment Control Section Personnel. Design Documents These documents are to be provided by the vendor during the planning phase of the project.

Systems Specifications These documents are to be provided by the vendor during the planning phase of the project.

Systems Architecture These documents are to be provided by the vendor during the planning phase of the project.

System and Acceptance These documents are to be developed by agency staff Testing during the planning phase of the project.

Operations requirements These documents are to be provided by the vendor during the planning phase of the project.

3.2 SUCCESS AND QUALITY METRICS Metric are key to understanding the ability of the project to meet the end goals of the Executive Sponsor and the Business Owner, as well as the ability of the project team to stay within schedule and budget. NUMBER DESCRIPTION QUALITY METRICS SYSTEM WORKS AS DESIGNED

NUMBER DESCRIPTION 1

4.0 SCHEDULE ESTIMATE

The schedule estimate is requested to provide the reviewers with a sense of the magnitude of the project and an order of magnitude of the time required to complete the project. In developing the schedule estimate, certification timelines and state purchasing contracts and procurement lead times are as critical as vendor lead times for staffing and equipment delivery. Project metrics include comparisons of actual vs. target date. At the Project Charter initial phase, these times can only be estimated. 5.0 BUDGET ESTIMATE

Within the Project Charter budgets for the project can only be estimated. Original budgets requested in appropriations or within agency budgets are probably not the numbers being worked with at project time. Funding sources are asked for to help evaluate the realism of project objectives against funding, and the allocation of budget estimates against project deliverables. Please remember to include agency staff time including project managers as costs.

5.1 FUNDING SOURCE(S) SOURCE AMOUNT ASSOCIATED RESTRICTIONS USDOL SBR $1,200,000 FF MUST BE OBLIGATED BY SEPTEMBER 30, AGENCY FUNDS: 2011 UI CLAIMS OPERATING $137,000 GF BUDGET

5.2. BUDGET BY MAJOR DELIVERABLE OR TYPE OF EXPENSE - ITEM COST ESTIMATE . INITIATION $0 PLANNING AND $107,000 TOTAL PROJECT PROJECT COST FUNDED BY MANAGEMENT SBR IV&V $30,000 IMPLEMENTATIO $1,200,000 N

5.3 BUDGET BY PROJECT PHASE OR CERTIFICATION PHASE

6.0 PROJECT AUTHORITY AND ORGANIZATIONAL STRUCTURE

6.1 STAKEHOLDERS Stakeholders should be a mix of agency management and end users who are impacted positively or negatively by the project. NAME STAKE IN PROJECT ORGANIZATION TITLE SUZANNA KITTS USER NMDWS BPC SECTION SUPERVIS OR CHARLES MATHER USER NMDWS QC MANAGE R

6.2 PROJECT GOVERNANCE PLAN A diagram of the organization structure including steering committee members, project manager and technical/business teams would be helpful.

6.3 PROJECT MANAGER 6.3.1 PROJECT MANAGER CONTACT INFORMATION NAME ORGANIZATION PHONE #(S) EMAIL TBD 6.3.2 PROJECT MANAGER BACKGROUND TBD after Planning phase certification and release of funds.

Executive Sponsor Neil Meoni Deputy Secretary

IV&V TBD

Charles Mather Suzanna Kitts PM QA Manager BPC Bureau Chief TBD

6.4 PROJECT TEAM ROLES AND RESPONSIBILITIES

ROLE RESPONSIBILITY Business Owner Manage USDOL requirements and work with system integrator to ensure delivery of defined solution components. Subject Matter Expert Manage the Knowledge Transfer and Transition to Operations.

6.5 PROJECT MANAGEMENT METHODOLOGY The Department of Information Technology certification process is built around a series of certification gates: Initiation, Planning, Implementation and Closeout. Each of these phases/gates has a set of expected documents associated with it. The gates and the associated documents make up the certification methodology. For some projects such a framework might be sufficient, where for some projects the solution development life cycle (SDLC) with plan, define, design, build, close might be more appropriate. Put most simply how is the project to be structured into a methodology or framework and where do the project and product deliverables fit into this roadmap? 7.0 CONSTRAINTS

NUMBER DESCRIPTION 1 AVAILABILITY OF CONTRACTOR 2 DELIVERY OF NEW SERVERS 8.0 DEPENDENCIES

Types include the following and should be associated with each dependency listed.  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 CONTRACTOR AVAILABILITY E 2 EQUIPMENT DELIVERABLES E

9.0 ASSUMPTIONS

NUMBER DESCRIPTION 1 DATA ELEMENT TRANSFERS WILL FLOW PROPERLY 2 EQUIPMENT WILL BE PURCHASED AND DELIVERED AS

NUMBER DESCRIPTION REQUESTED 3 BARTS WILL INTERACT WITH EXISTING DATA

10.0 SIGNIFICANT RISKS AND MITIGATION STRATEGY

Risk 1 Probability : 20% Impact Possible delay of implementation. Availability of Resources (Human) Mitigation Strategy: Reallocate existing resources Contingency Plan: Use of Temp employees or contractors

Risk 2 Probability < 20% Equipment availability Impact Project stoppage Mitigation Strategy : Order equipment 6-weeks ahead of implementation phase. Contingency Plan : Use alternative vendor source for hardware

11.0 COMMUNICATION PLAN FOR EXECUTIVE REPORTING

This will be managed through the executive steering committee defined in the governance structure diagram above.

12.0 INDEPENDENT VERIFICATION AND VALIDATION - IV&V

IV&V focus depends upon the type of project, with various emphases on project and product deliverables. The following check list is based on Exhibit A of the OCIO IV&V Contract Template, and the Information technology template. It is included here to provide a high level of the type of IV&V accountability the project envisions:

Project/Product Area Include –

Yes/No Project Management Yes Quality Management Yes Training Yes Requirements Management Yes Operating Environment Yes Development Environment Yes Software Development Yes System and Acceptance Testing Yes Data Management Yes Operations Oversight Yes Business Process Impact Yes

13.0 PROJECT CHARTER AGENCY APPROVAL SIGNATURES

SIGNATURE DATE

EXECUTIVE SPONSOR NEIL MEONI – DEPUTY SECRETARY

BUSINESS OWNER CHARLES MATHER – QA MANAGER

PROJECT MANAGER TBD

14.0 PROJECT CHARTER CERTIFICATION APPROVAL SIGNATURE

SIGNATURE DATE

DOIT / PCC APPROVAL