1. GenTax® Upgrade to Version 9
Executive Sponsors
Demesia Padilla, CPA
Cabinet Secretary John Monforte Deputy Cabinet Secretary
Greg Saunders Chief Information Officer
September 17th, 2014

2. Background GenTax® – tax system of record for New Mexico
Commercial-off-the-shelf (COTS) product provide by Fast Enterprises, LLC
First implemented in 2002 for Personal & Corporate Income Tax
Currently 30 tax programs are processed in GenTax
Manages tax revenue stream fluctuating between $5.5 and $6.5 billion annually

3. Background Accounting basis for TRD financial revenue processing
Manages the revenue stream from taxpayers to beneficiaries
Processes all tax returns and payments
System for Tax Audit and Compliance initiatives
Repository for all historical tax information
Used to enforce tax code compliance and combat tax fraud

4. Key Reasons for Upgrade to v9
Some modules in the current version were obsolete, no longer supported, and were cumbersome to use and maintain; TRD was unable to fulfill critical user requests and implement legislative mandates on a timely basis.
Lost revenue opportunities – inability to take advantage of new additional revenues due to lack of implementation of New Refunds module, Taxpayer Offset Program, Discovery product, Business Credit Manager and other modern core revenue generation functionality

5. Key Reasons for Upgrade to v9
Fraud Prevention – GenTax v6 was unable to identity & prevent millions in fraudulent activity each year
Catastrophic failure – if GenTax suffered a catastrophic failure, NM would have been unable to collect and distribute $6 billion in revenues

6. Scope Upgrade all modules of tax processing system to Version 9 GenTax
Implement integrated data warehouse, Discovery
Implement a Business Credit Manager module

7. Benefits from Upgrade
Significant annual reduction of fraudulent refunds as a result of upgraded Refunds module and new data exchange functionality:
$20,577,764 in additional revenue captured by the Questionable Refunds Unit through increased reduction of fraudulent refunds as of 06/ due to the upgrade to v9 GenTax and the implementation of GenTax Discovery data warehouse module.
Additional new revenues annually resulting from more efficient processing due to an upgraded Taxpayer Offset Program module:
$7,051,123 as of 06/30/14 in additional revenue since implementation of new TOP module in 09/2012

8. Benefits from Upgrade
Significant increase in new revenues annually resulting from implementation of GenTax integrated data warehouse (Discovery). This module increases audit, collections, non-filer recoveries, real-time fraud prevention and return validation.
$8,179,000 in added collections realized from additional assessments made with the (Discovery) data warehouse product between 11/12/12 and 05/31/14.

9. Benefits from Upgrade
Annual savings in support & maintenance costs by incorporating the current data warehouse functionality into GenTax: $247,000 in annual data warehouse maintenance costs.
Considerable annual saving to General Fund will result from the implementation of Business Credit Manager functionality on 06/30/14. This new functionality will help ensure that revenue due to the State is fairly collected and distributed.
Greatly reduce the risk of catastrophic failure by upgrading to version 9 of GenTax

10. Benefits from Upgrade Business Process Improvements Benefits
Improved Efficiency
Streamlining of business processes for multiple Bureaus such as: the auto assessments of cases, automatic case creation, automatic client/account creation, electronic applications, all of which reduce labor intensive manual tracking and will facilitate realization of revenue.
Reducing false positive leads by moving the data warehouse into a single integrated system.
Improved collection and levy functions.

11. Lessons Learned
Strong emphasis on implementation of a comprehensive integrated user training plan
Different forms of training: videos, handouts, formal classes, computer labs
Committed business user divisional resources onsite for the duration of the project
Internal PMO and PMO business analyst dedicated to the project
Highly effective interaction between the TRD project management staff, vendor staff and IV&V vendor ensured quality of product and on time project delivery
Standardization and consistency of GenTax v9 has benefited employees
Knowledge and experience is more easily transferred between functional areas

12. Timeline and PCC Gates Initiation Planning Implementation Closeout
Initiation
Planning
Implementation
Closeout
4/18/12 to 5/1/12
5/1/12 to 5/31/12
6/1/12 to 6/30/14
6/30/14

13. Budget
In Laws of 2012, Chapter 19, Section 7, Item 4, TRD received $6,230,000
The total cost of the project was $6,081,072 Project came in under budget by $148,928
Funds were expended by 6/30/14

14. Summary Return on Investment
The original Business Case for the GenTax Upgrade to v9 Project:
A ROI of over 3:1 over five years after implementation into Production of GenTax v9 on 06/30/13
As of 06/30/14 the GenTax Upgrade to v9 has generated an additional $36,055,000 in revenue and cost savings to the state at a cost of $7,800,000. This represents a current run rate ROI of over 4.5:1.

15. Summary The upgrade to GenTax Version 9 resulted in:
Increased annual revenue generation
Improved Fraud detection and prevention
Enhanced processing and tracking of refund requests
Business Credit Manager will increase annual savings through the prevention of over distribution from the General Fund
Reducing overall system risk over the long term
Ensuring continued collection and distribution of $5.5
to $6.5 billion in annual revenues

16. Questions
Thank You!