Q U S UMMARY

QUARTER
Q
RLY REPO
ORT – APR
RIL 2013
UIA INTEG
U
GRATED SSYSTEM P
PROJECTSS SUMMARY
Th
he State of Michigan’s Department of Lice
ensing and Reggulatory Affairss (LARA), Unem
mployment Inssurance Agenccy (UIA) has em
mbarked on a a multi‐year Syystem Integrattion Project to
o complete a comprehensivve and compllex rewrite of Michigan’s cu
urrent Unemplloyment Insuraance (UI) syste
ems. A moderrnized, integratted system wiill provide real‐time data shaaring across fu
unctions, increaase productivitty, enhance cu
ustomer service
e and ease of uuse, and provid
de flexibility in
n complying with changing feederal mandate
es and other rrequirements. The UIA provid
des critical, bi‐‐weekly, econo
omic support ffor Michigan w
workers and th
heir families, m
many of whom rely exclusivelyy on their unem
mployment coompensation fo
or daily living eexpenses. Th
he UIA–Integrated System (UIA‐IS) (
projecct will replace
e the 25+ yea r old legacy m
mainframe sysstem and all the various an
ncillary applicaations used byy UIA to delive
er customer se
ervice to Michiigan businessees and citizenss. Through a ccompetitive Reequest for Pro
oposal (RFP) procurement p
process, p
the State selected FAST Enterprises to configure and impleement their GenTax comme
ercial‐off‐the‐sshelf (COTS) application. a
This T
COTS soolution – referred to as M
Michigan Integgrated Data utomated Systtem (MiDAS) ‐ ‐ will replace the t current taax and benefit s mainframe ssystem. The d
design, develo
opment and Au
im
mplementation
n project startted on Augustt 29, 2011 and will run forr three (3) years. The Tax System comp
ponent was su
uccessfully imp
plemented into
o Production on o August 13,, 2012. The B
Benefits compo
onent is on‐scchedule to be installed in Seeptember 2013
3. The fully inttegrated Unem
mployment System (UI) will thhen enter a on
ne‐year warran
nty period, followed by up to
o seven (7) years of maintenaance and suppo
ort. To
o achieve thesse objectives, UIA and its state s
partner agency, a
the D
Department off Technology, Management and Budget (D
DTMB) contraccted with CSG Government Solutions S
(CSG
G) to provide ffull‐time, on‐siite Project Maanagement to oversee this co
omprehensive and complex p
project, and to function as th
he overall Projeect Control Offfice (PCO) overr the following projects: A MiDAS Projecct ƒ UIA
ƒ HB4
4408 ‐ compliaance with Housse Bill 4408, Be
enefit Paymentt Control (BPC)) Detection and
d Collection Prrocess Imp
provements ƒ Inte
egrity Initiative
e – Enterprise FFraud Detectio
on System (EFD
DS) ƒ Inte
eractive Voice Response (IVR
R) Systems Replacement and Software Upgrrades ƒ UIA
A Call Center Sttudy STTATUS UIA Michigan Integrated Data Automatted System (M
MiDAS) Th
he UIA MiDAS met its sched
dule and imple
emented the Phase P
I ‐ Tax aapplication on
n August 13th, 2012. This phase of the prroject was com
mpleted on‐sco
ope, on‐schedu
ule and on‐budget. Th
he MiDAS appllication has been operating ssuccessfully in Production fo r over eight (88) months, with
h minor issues. Some 987 UIA requiremen
nts and 3,658 rules were inccorporated intto the MiDAS Tax applicatio
on. The Emplo
oyer facing co
omponent – M
Michigan Web A
Account Managger (MiWAM) –
– now has over 53,248 Emplooyers utilizing the on‐line ap
pplication. Th
he Benefits application (Phasse II of the pro
oject) completed planning annd overview seessions late last year, and is now in the Deesign/Definitio
on stage. An aadditional 571 Requirementss and 3,321 Ruules are being reviewed and
d discussed as the project m
moves through the Benefit functionality. State Busine
ess Analysts hhave recently started Systeem Testing on
n the early deeveloped modules. Benefit cconversion, datta purification activities, andd developmentt of Interfaces iis also underway. In
n January 2013
3, the project ssuccessfully up
pgraded the Tax production environment from client/seerver to web‐b
based. This m
maintenance an
nd support upggrade from the COTS vendor is providing ennhanced functiionality and a rrobust user intterface. Ap
pril 11, 2013 ©2013 CSG
Page
e 1 QUARTER
Q
RLY REPO
ORT – APR
RIL 2013
UIA INTEG
U
GRATED SSYSTEM P
PROJECTSS House Bill 440
08 ‐ Benefit Pa
ayment Conttrol (BPC) Dettection and CCollection Pro
ocess Improveements UIA contracted with On Poin
nt Technologie
es to implement their COTSS recover colleections software solution. TThe project mented into Production P
inn September 2011. UIA has also im
mplemented sttarted in May 2011 and was implem
deetection/collecction process improvements
i
s and has show
wn a 33% incrrease in collecctions ($27.3M
M for 2010 vs. $35.3M for 20
012) when com
mpared year‐ovver‐year for the past two yeaars. This projecct is 100% com
mplete and in m
maintenance and support. Ad
dditionally, CSSG Governmen
nt Solutions – which manage
es the Project Control Officee (PCO) provid
ded an evaluation of BPC prrocesses and completed a report r
of reco
ommendationss for improvem
ments based o
on best practices and addittional state reesearch. These
e recommendaations are being incorporated
d into the UIA M
MiDAS and EFD
DS projects as applicable. In
nteractive Voice Response
e (IVR) System
m Replaceme
ent and Upgraades Th
he Interactive Voice Responsse (IVR) projecct is occurring in two phasess. The first ph
hase was an up
pgrade of the existing call ceenter hardware and is now 1
100% complette, with UIA an
nd DTMB havinng replaced th
he MARVIN an
nd Telephone FFiled Claims (TTFC) hardware systems in Julyy 2012. The old hardware an
nd telecomm liines have been
n decommissio
oned. Th
he second phaase is for the call center and IVR softwaare platforms to be upgrad
ded. Working with Genesyss (TFC) and Ceenturion (MAR
RVIN), the upgrade vendorss, the project completed thhe Discovery, Business Requirements and
d Technical Deesign phases in i the May – August 2012 time frame. Due to UIA prrogram changges and MiDASS project implementation deecisions, both the TFC and MARVIN Busin
ness Requirem
ments and Tec hnical Designss were review
wed again and updated in Jaanuary – February 2013. An
n independentt study of the overall existin
ng call center ttelephone Pubblic Branch Excchange (PBX) aand Auto Call Distribution (A
ACD) architectu
ure has conclu
uded, and a re
eport was pro
ovided to the State. Much of the existin
ng PBX/ACD eq
quipment is an
ntiquated and,, as such, shorrt term solutio
ons are being implemented tto allow the in
nterface of thee existing PBX//ACD phone eq
quipment to th
he TFC & MARV
VIN upgraded IVR systems. Th
he project is m
moving into the Build & Deplo
oy phase, so thaat all IVR changges will be in p
production prio
or to MiDAS go
oing live. In
ntegrity Initia
ative ‐ Enterprise Fraud De
etection Syste
em (EFDS) Prroject Th
he purpose of the EFDS projject is to imple
ement a comm
mercial‐off‐the‐‐shelf (COTS) ssoftware soluttion able to prrovide fraud deetection based
d on State and Federal guidellines. The goals are to: reducce the percenttage of UI and public assistan
nce benefits paaid due to fraaud; identify and a report fraud characterisstics by individduals or group
ps based on information deerived from m
multiple sources; and recognize patterns in
n data that revveal organizedd attempts to defraud the u
unemploymentt and public asssistance systems. In
n December 20
011 UIA hosted
d “spotlight” se
essions whereby six vendorss provided dem
monstrations o
of their system
ms. The RFP w
was released in February 201
12. Four bidde
ers responded to the RFP. TThe procurem
ment process w
was placed on hold, while reequirements from f
the Dep
partments of Human Services (DHS) annd Communityy Health (DCH
H) were deveeloped and in
ncorporated intto a re‐release of the RFP. Proposals were evaluated andd oral presentaations were heeld in July 2012
2. Proposals an
nd pricing were
e reviewed and scored by joint evaluation committee (JEEC) members from DTMB, DC
CH, DHS and UIA. The JEC m
made its vendorr recommendaation in Octobe
er, with the revviewed/approvval of the contrract funding byy the State Adm
ministrative Bo
oard (AD Board
d) received in D
December 201
12. Th
he project staarted in Janu
uary 2013, an
nd is workingg with the DH
HS Food Assiistance Prograam (FAP) to be the 1st im
mplementation
n, scheduled fo
or the August‐‐September 20
013 time fram
me. The impleementation off the UIA fraud
d detection co
omponents is sscheduled to sttart in the 4th q
quarter of 2013
3. A
APPROVED
D BUDGET (as of February
(
y 28, 2013) Total Projecct Budget = $ 69,427,524
Ap
pril 11, 2013 ©2013 CSG
Page
e 2 EExpenditures to
o Date = $ 26,9
971,813