TRD Data Analytics Initiation Project Certification April 25, 2018

Agenda Background Purpose Scope Budget Schedule Request Questions

Background TRD Audit and Compliance Division (ACD) has been employing SAS for over 10 years to improve the Audit Selection process. In 2014, the Agency purchased SAS Visual Analytics (SAS VA) to improve the security of the data. In 2016, ACD started to explore solutions that employed additional predictive modeling and business intelligence functions to reduce wait time in the audit selection process. Decision was made to extend the SAS platform and employ the SAS Solution for External Analytics.

Purpose - TRD Data Analytics Project Increase the sophistication of the current TRD infrastructure, specifically in the functional areas of Audit Selection. Improve this function specifically for the Gross Receipts Tax (GRT) tax program. Incorporate external data as available and feasible to improve the Audit Selection focus and accuracy.

Scope Audit Selection Process Gross Receipts Tax program External data used to improve data models only to the extent feasible and available within budget.

Total Project Budget ROUGH ORDER OF MAGNITUDE ESTIMATE Proposed Major Deliverable Schedule and Performance Measure Major Project Deliverable and Performance Measure*** Budget Due Date Project Phase Provide (3) environments in TRD infrastructure at SIMMS $170,000 4/25/2018 Initiation IV&V Services $150,000 5/31/2018 SAS Annual Support and Licensing – 1 year in advance $320,000 Planning SAS Training $48,000 2/1/2019 Implementation   SAS Contract ($1.150.000) Document Requirements & Gain Approval $100,000 7/13/2018 Install SAS Fraud Framework 10/1/2018 Develop Design Specifications 10/5/2018 UAT Approval $300,000 2/27/2019 Rollout into Production + 30 days $550,000 4/30/2019 TOTAL Project Budget $1,838,000

Project Schedule

Initiation Request Requesting $320,000 in initiation funds for the TRD Data Analytics project which will deliver improved Audit Selection for the GRT tax program.

Questions