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Royalty Accounting and Revenue Processing System (RAPS) Certification

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Presentation on theme: "Royalty Accounting and Revenue Processing System (RAPS) Certification"— Presentation transcript:

1 Royalty Accounting and Revenue Processing System (RAPS) Certification
planning may 23, 2018 RAPS Management Team: George Rosenbaum, Executive Sponsor Tony Hoffman, CIO cathy plummer, pm

2 Project Stakeholders and Governance
NM State Land Trust Beneficiaries Oil and gas industry SLO Royalty, Oil and Gas, Accounting, and Information Technology Divisions Citizens of New Mexico Executive Steering Committee: SLO Deputy Commissioner, Chair Executive Director, IT and Royalty Mgt Division Chief Information Officer Director, Royalty Mgt Division Asst Commissioner, Oil, Gas, Minerals Division Asst Commissioner, Administrative Services

3 Project Justification
SLO produces revenue by leasing lands and collecting royalties for renewable energy, oil and gas drilling, and other surface and subsurface activities. ONGARD has collected and distributed over $26 Billion, but the technology is now nearly three decades old, and more of a risk each year to maintain. Just during the past month, mainframe operating system issues resulted in royalty and leasing functionality offline for several days. Delaying distributions to SLO's beneficiaries is not acceptable. SLO is moving forward with a phased approach that provides the least risk, and the most functionality, in the least time, effort and cost.

4 Phased Approach The RAPS project will modernize the system platform and applications: PHASE I Refactor mainframe COBOL code into modern language (C# or Java) Migrate code to a server architecture Fully tested application that replaces royalty and leasing accounting functions PHASE 2 Concurrently address application modernization Optimize royalty accounting and audit functions Migrate leasing accounting to Land Information Management System (LIMS) Interface to SLO Geographic Information System (GIS)

5 Phase 1: Migrate Code to Modern Architecture

6 Interoperability

7 Phase 2: Business Function Modernization

8 Timeline:

9 Timeline:

10 Risks, Issues, Mitigation Strategies
Risk Title Description Probability Impact Response Mitigation Strategy Schedule Project delays due to extended contract approval process. Med High Initiation of the project is time sensitive. Coordinate efforts with contract approving agencies, involve SLO General Counsel early in the contract review process. Architecture SLO’s existing technical architecture must support the new system implementation. Low Project will engage in visioning with stakeholders, and produce future state and sizing documentation early in Phase 1 to confirm architectural requirements. Assess architectural options in early planning phase, requirements and gap analysis to ensure funding is adequate to address necessary infrastructure and application modifications. Code conversion The refactored code produced from Phase 1 may not adequately replicate ONGARD system functionality. Cutover data functionality is guaranteed by the vendor to match 100% current PROD code and functionality. Validate to prove legacy system functionality, in modules, starting with foundational modules first. Repeat steps with each module and parallel test to legacy system. Resources and Sustainability Knowledge, skills and abilities of SLO IT team not sufficient to collaborate on development and deployment or maintain the modernized system. Phase 1 code conversion will be incremental and provide opportunities for training SLO IT team on tools and process. Cross train SLO IT resources in the knowledge transfer process to diversify the risk.

11 Budget and Major Deliverables
Description FY17 & Prior FY18 FY19 FY20 FY21 & After Consulting Services Tek Systems and H. Lewis $ ,826 $ 143,036 IV&V $ ,062 $ ,350 $ ,900 RAPS Phase 1 Refactoring Vendor ONGARD platform conversion, sizing, architecture design, code migration, system specification, testing, deployment, training and documentation $ 1,796,091 $ 3,754,045 $ 2,149,864 Additional professional services Phase 2 RAPS application development: business analysis, integration, testing, deployment, training and documentation $ ,000 $ ,000 Equipment Equipment to support new system $ ,826 Total $ 1,947,189 $ 4,702,395 $ 3,219,590

12 SLO Accomplishments Successfully decommissioned the TRD-severance portion of ONGARD. Reduced lines of code to ~ 1.3 Million, cutting conversion costs. Maintaining royalty + leasing accounting functions in ONGARD. Evaluated code and produced diagnostic analysis and observations. Interfaces and third party products deemed to be convertible or compatible to new code in a post-conversion environment. Performed due diligence on feasibility of using proprietary conversion engine to verify the methodology and contractor’s ability to deliver as promised. Past performance over the last 20 years indicates a high degree of success with this technology and related processes. Negotiated IV&V and Phase 1 contracts (currently in procurement)

13 Certification Request
Amount Requested this Certification $ ,034,651 Amount Previously Certified $ ,861 Remaining Appropriation not Certified $ ,691,488 Total Appropriation Amount $ ,000,000 SLO is seeking PCC approval to release funding for Planning through September 2018

14 Questions? New Mexico State Land Office


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