New MexicoTreasury Offset Program (NMTOP)

Sue Anne Athens, CIOMay 2014

Presented to Project Certification CommitteeNew Mexico Department of Workforce Solutions

• Project Purpose• Business Objectives• Technical Objectives• Budget• Schedule• Scope• Lessons Learned• Questions

Agenda

• Certification Request for Close Out Phase.• Design and Implementation complete• Correspondence sent monthly to new fraudulent claimants is

automated and working since 10/12/2013. • Weekly updates sent from UI to NMTOPs and forwarded to

Treasury is automated and functioning since 1/27/2014.• Weekly return files from Treasury to NMTOPs is automated and

functioning since 1/27/2014.• First automated collection file received 2/13/2014 and funds were

received in bank 2/20/2014.

Current Status

• NMDWS has 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.

ACHIEVED

Business Objectives

Project Delivered Within Budget

Budget Category Cost

CONTRACTOR $250,000

IT EQUIPMENT $125,000

TEMPORARY STAFF $19,864

MISCELLANEOUS $5,000

TOTAL $399,864

Note: Federal Funding Received via Supplemental Budget Request

• Double the time for internal testing as test administrators are optimistic.

• IT information provided by Treasury is often cryptic and not correct.

• Timing of collections proves to be challenging and causes unavoidable refunds.

• Many states advised us just to jump in and that proved to be good advice because issues are not that great to overcome.

• Project has provided a great source of income to the state:

NMDWS recovered $303,630.39 directly from taxpayers via NMTOP letters And NMTOP collected an additional $6,501,915.82 from the US Treasury for those who did not pay directly.

“Lessons Learned”

Questions