1. Data Warehouse External Data Loads Implementation Certification May 27, 2009 Project Certification Committee May 27, 2009 1

2. Data Warehouse Description –Consolidated collection of data for the sole purpose of enforcing taxpayer compliance –Load additional sources of data to enhance existing system Justification –More efficient, productive system Improve efficiency of ACD employees Reduce false positive notices to taxpayers –Increase data available for future project development

3. Current Processes The purpose of the DW is to increase the capability of to identify, create and track potential cases by –Matching data from multiple sources to find discrepancies –Automatically calculate taxes due –Automatically generate cases and correspondence –Automating the audit prospecting process –Implementing tape match programs Existing data sources used for data matching are: –GenTax –MVD license and vehicle registrations –Federal IRS Returns and Income Sources –Department of Workforce Solutions May 27, 2009 3

4. Initiation Phase Status Develop contractual requirements for external data loads and weight-distance sub-projects –Analysis of specific data loads in process Develop contract based on requirements –Contract in review Develop project management plan Determine required hardware/software –Quotes received and architectural review in progress Execute IV&V contract May 27, 2009 4

5. Implementation Phase Deliverables Procure and configure required hardware/software Execute Vendor contract Execute Proposed Solution May 27, 2009 5

6. Proposed Solution Existing capabilities and project complexity will increase by loading additional external data sources: Weight-Distance Project –IFTA Clearinghouse Data –GenTax Weight Distance Data –Commercial Vehicle Data –NMWebFile Data Data Loads Project –Regulation & License Data –Property tax –Voter registration –Active duty military website –Death index –Customs data –PRC corporation information –USPS address changes –DFA contract information –Dodge reports –Third Party business entity information that provides detailed financial, demographic, and affiliation information. April 22, 2009 6

7. Project Timeline May 27, 2009 7

8. Appropriations May 27, 2009 8 Laws of 2009: Chapter 124, Section 7, Item 2: $500,000 (part of Fair Share Initiative) NMSA 1978, Section 7-15A-13 : $360,000 Requesting $760k for Implementation phase

9. DoIT System Impact Minimal impact on DoIT during Implementation Phase TRD plans to house Virtual Environment at TRD Data Center or commercial BC Center Planning additional hardware/software resources to help optimize data load activities Very slight increase expected in network activities –DW & Vendor developers only May 27, 2009 9

10. Security Due to the existence of Federal Tax Information in the data warehouse, data security and integrity is governed by IRS Publication 1075 and TRD & DoIT security policies. IRS Audit Scheduled for 08/2009, internal audits and validation currently in process. Oracle authentication implemented to determine database level authority. Use of Roles within the application prevents departmental overlap of accessing secured and confidential data. Data access logging used to monitor and retrieve user activity May 27, 2009 10

11. Conclusion –Ensures the fair and equitable administration of our tax reporting and paying requirements –Decrease the overall 10 – 15% tax gap leading to increased revenues for general Fund –Identify non-compliant taxpayers –Ensure Department efficiency by targeting true under-reporters and non-filers. –Increase overall revenue by making staff audit time more efficient; as well as collection time after assessments are generated by automating time intensive processes. May 27, 2009 11