State of New Jersey Experiences in Tax Processing Making Technology Work Statewide Steve Csogi...
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State of New Jersey State of New Jersey Experiences in Tax Experiences in Tax Processing Processing Making Technology Work Statewide Steve Csogi August 17, 1999 State of New Jersey Division of Revenue
State of New Jersey Experiences in Tax Processing Making Technology Work Statewide Steve Csogi August 17, 1999 State of New Jersey Division of Revenue
State of New Jersey Experiences in Tax Processing Making
Technology Work Statewide Steve Csogi August 17, 1999 State of New
Jersey Division of Revenue
Slide 2
08/12/99 -Page 2 State of New Jersey Document Processing System
State of New Jersey Division of Revenue Outline F Background F DPS
Project Scope F System Architecture F Forms F Inscript Processing F
Results F Next Steps
Slide 3
BackgroundBackground State of New Jersey Division of
Revenue
Slide 4
08/12/99 -Page 4 State of New Jersey Document Processing System
State of New Jersey Division of Revenue New Jersey Division of
Revenue F Formed in January 1997 F Tax and revenue functions
transferred from vDivision of Taxation vDivision of Motor Vehicles
vDivision of Commercial Recording vDepartment of Environmental
Protection vDepartment of Labor F States Lock Box for revenue
collections F States Imaging Center F 1998 Inscript Customer of the
Year - Capture 98
Slide 5
08/12/99 -Page 5 State of New Jersey Document Processing System
State of New Jersey Division of Revenue Tax Processing in New
Jersey F New Jersey Division of Revenue processes all tax returns
and payments from New Jersey taxpayers F 8.6 million total returns
filed each year F 3.5 million personal income tax returns filed F
1.6 million personal income tax returns filed in April F Annual
processing requires: v115 Permanent Staff v400 Seasonal Staff
vOutside Contractor to extract and prep tax returns
Slide 6
08/12/99 -Page 6 State of New Jersey Document Processing System
State of New Jersey Division of Revenue Where we were F Processes
were manual with traditional data entry F Aging data entry
equipment with excessive maintenance costs F Heads Down data entry
resulting in Repetitive Strain Injuries and lawsuits F Data entry
operators were being paid incentive F Shrinking labor market of
trained data operators F Increased demand to do more with less F
Paper returns were kept in files and stored
Slide 7
08/12/99 -Page 7 State of New Jersey Document Processing System
State of New Jersey Division of Revenue Front End Modernization
Project F Four Major Project Phases F Automated Mail Extraction
(OPEX Corporation) vMPE 5.0 / System 150 / MPS 30 v6,000/hour vs.
150/hour F Replacement of Data Entry System to open architecture
(Unisys/DCR) F Integration of Image Enabled Remittance Processing
(Unisys/DP500) F Full Page Image Processing - Document Processing
System (Logicon/Northrop Grumman)
Slide 8
08/12/99 -Page 8 State of New Jersey Document Processing System
State of New Jersey Division of Revenue Goals & Projected
Return on Investment F Reduce seasonal employee hiring and salary
expense F Less traditional data entry F Faster deposit of tax
revenue F Faster refunds to taxpayers F Leveraging existing
technology investment F DPS throughput of 38,000 income tax returns
per day F Expand functionality to add new forms
Slide 9
DPS Project Scope State of New Jersey Division of Revenue
Slide 10
08/12/99 -Page 10 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Project Scope - Size
& Processing F Process 4 million returns annually F NJ1040s
received in April must be processed through DPS by May 31 F DPS
will operate over 2 shifts / 14 hrs per day F 12 person hours are
available for manned operations such as scanning and verify F DPS
is available 24 hours per day for unmanned operations such as
deskew, OCR/ICR, system backup F Net peak DPS requirement is to
process 38,000 NJ1040s per day to achieve a maximum 6-week refund
turnaround
Slide 11
System Architecture State of New Jersey Division of
Revenue
Slide 12
08/12/99 -Page 12 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Functional
Architecture F Image Capture F Data Capture F Data Export F System
Services
Slide 13
08/12/99 -Page 13 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Functional
Architecture F Image Capture Subsystem vScan Tax Documents and
Attachments vAssign a Document Locator Number and Form Codes
vHandle Input Errors and Exceptions vMaintain Batch Integrity
Slide 14
08/12/99 -Page 14 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Functional
Architecture F Data Capture Subsystem vPerform OCR on Machine Print
Text vPerform ICR on Hand Print Text vPerform Review and Repair for
Low Confidence Recognition, and Math/Edit Errors vConvert Image
Fields to ASCII Data
Slide 15
08/12/99 -Page 15 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Functional
Architecture F Data Export Subsystem vAccepts Tax Form Data from
the Data Capture Function vReformats Data into Mainframe Output
File Spec vTransfers Image Data to Backend Imaging System F System
Services vOverall System Control and Process Flow vManages Workflow
and Data Structures vHandles Batch Creation and Processing
vMonitors Local Network Communications
Slide 16
08/12/99 -Page 16 State of New Jersey Document Processing
System State of New Jersey Division of Revenue DPS
Architecture
Slide 17
FormsForms State of New Jersey Division of Revenue
Slide 18
08/12/99 -Page 18 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Forms Building
Process - NJ1040 F Joint Project between State and Logicon/Northrop
Grumman F Three Personal Tax Forms to Process vNJ1040 Hand Print
vNJ1040 Machine Print vHR1040 Hand Print (Homestead Rebate Only) F
State Establishes Policy and Form Rules F Joint Team Designs Forms
F Northrop Grumman Implements Form and System Changes F
Post-implementation Changes for Production
Slide 19
08/12/99 -Page 19 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Forms Building
Process F Hand Print NJ1040 Forms vTwo pages/Four form-sides
vBarcodes (2-of-5 Encoding) on each form side vMultiple
Registration Points on each Form-side vConstrained Boxes vNumber of
Fields: 101 Page 1 - 33 Page 2 - 23 Page 3 - 19 Page 4 - 26 vName
and Address Block Processing for both Label and Non-label
Returns
Slide 20
08/12/99 -Page 20 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Inscript Forms
Definition F Hand Print NJ1040 v2 Physical Pages - 4 Recognized
form-sides vOne FDF/form-side - 101 Total Fields vImplements 16
Math and 110 Edit Rules vRegisters forms using pre-printed
registration marks vContains ICR and MarkSense fields vRecognition
rate thresholds typically set at 85% vPage End Rule Block enforces
cross-field validation vOutput file passes through specific Unix
processes then on to the Verify function
Slide 21
08/12/99 -Page 21 State of New Jersey Document Processing
System State of New Jersey Division of Revenue
Slide 22
08/12/99 -Page 22 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Forms Building
Process F Machine Print NJ1040 Forms vSupports 35 Tax Software
Versions vOne page/One side vLarge Scan Band Recognition Area
vBarcode on Page 1 vScan Band Registration Corners vNumber of
Fields: 101 vName and Address Block Processing of Machine Printed
Address Data
Slide 23
08/12/99 -Page 23 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Inscript Forms
Definition F Machine Print NJ1040 vOne Physical Single-sided Page -
One recognized form-side vOne FDF - 101 Fields vImplements 15 Math
and 96 Edit Rules vRegisters form using corner of scan band
vTwo-step Processing Column-mode Field-mode vPage End Rule Block
enforces cross-field validation and syntax checking vOutput file
passes through specific Unix processes then on to the Verify
function
Slide 24
08/12/99 -Page 24 State of New Jersey Document Processing
System State of New Jersey Division of Revenue
Slide 25
08/12/99 -Page 25 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Forms Building
Process - WR30 F NJ1040 Success Builds Foundation for New Forms F
DPS Now Processes Wage Reporting Forms (WR30) vWR30 Dropout Form
vWR30 Plain Paper Spec (PPS) F Form Processed Quarterly v180,000
Employers file each period v144,000 single-page forms v36,000
multi-page forms result in 130,000 imaged pages v1.3 million
employee records processed/quarter F Over 32 million fields
recognized per year F States data base used to validate employer
and employee data each quarter and reduce manual data
verification
Slide 26
08/12/99 -Page 26 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Forms Building
Process F WR30 Dropout Form vVariable Number of Pages vMinimum One
page/Two form-sides vFront-sides Pre-printed vAdd Employees on Back
vBarcodes (2-of-5 Encoding) on each form side vMultiple
Registration Points and Constrained Boxes vMax Fields/page: Front
side: 68 and 100 Back side: 28 vPre-print 99 employees Max
Slide 27
08/12/99 -Page 27 State of New Jersey Document Processing
System State of New Jersey Division of Revenue
Slide 28
08/12/99 -Page 28 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Forms Building
Process F WR30 Plain Paper Spec (PPS) vMultiple Tax Software
Supplier Versions vState-specified Printed Page Layout vMultiple,
single-sided Pages vMaximum 99 employees vText-line Registration
vMax Fields/page: 108
Slide 29
Inscript Processing State of New Jersey Division of
Revenue
Slide 30
08/12/99 -Page 30 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Inscript Environment
F Inscript 7.0 F Fourteen (14) Pentium 333 MHz F 128 MB RAM F
Windows NT Server Platform F Operates 24 hrs/day
Slide 31
08/12/99 -Page 31 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Inscript Performance
Metrics F NJ1040 Page Processing Rates v1997 Rates - Inscript 5
Hand Print: 5-8 sec/page (4 pages) Machine Print: 14-20 sec/page
v1998 Rates - Inscript 7 Hand Print: 2-5 sec/page (4 pages) Machine
Print: 5-7 sec/page vAverage Rate Increase Range: 120-180 %
Slide 32
08/12/99 -Page 32 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Inscript Performance
Metrics F NJ1040 Field Recognition Rates v1998 Hand Print
Average92.8 % Page 1 - 93.7 Page 2 - 85.3 Page 3 - 96.5 Page 4 -
95.1 v1998 Machine Print Page 1 - 98.1 %
Slide 33
DPS Results State of New Jersey Division of Revenue
Slide 34
08/12/99 -Page 34 State of New Jersey Document Processing
System State of New Jersey Division of Revenue 1998 Volumes &
Throughput F Scanning vExceeds 38,000 returns/day v10 images/return
equates to 400,000 pieces of paper and images/day F Inscript
Processing v90,000 Pages processed/day v26,000 Machine Print
v64,000 Hand Print F Verify v38,000 returns/day v1/2 hour/batch vs.
2 hours/batch in conventional data entry
Slide 35
08/12/99 -Page 35 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Projected 1999
Volumes & Throughput F Scanning v58,000 returns/day vNearly
500,000 images/day F Inscript Processing vNJ1040 90,000 Form-sides
processed/day 3.8 M fields/day vWR30 64,000 Form-sides
processed/day 800,000 fields/day F Verify v58,000 returns/day
Slide 36
08/12/99 -Page 36 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Expanding Technology
Base Sub-system19951996199719981999 Scanners 3 6 8 8 9 CPU Modules
1 2 6 6 6 Inscript Server 6 9 14 14 14 Verify WS 10 20 33 63
63
Slide 37
08/12/99 -Page 37 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Peak Performance F
Scanning v04/30/1998 50,300 page sized documents / 553,300 pages F
Recognition v04/27/1998 5.7 million fields F Verify v04/27/1998
57,546 page sized returns F Image Committals v04/28/1998 895,906
pages v633,006 page sized / 262,900 coupon sized
Slide 38
Next Steps State of New Jersey Division of Revenue
Slide 39
08/12/99 -Page 39 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Processing Changes F
Implement the 1999 NJ1040 Income Tax Form F Continue Processing
Wage Reporting Form (WR30) F Integrate Key-From-Image Functions F
Implement Page-size Remittance/Document Processing F Implement
Senior Citizens Property Tax Freeze Form F Provide Imaging-based
services to other state agencies as a result of consolidation
efforts
Slide 40
08/12/99 -Page 40 State of New Jersey Document Processing
System State of New Jersey Division of Revenue Upgrade DPS
Components F FormWare software vAdd Formware 2.5 Capabilities F
System Software vOperating System vKodak Capture Subsystem F Expand
System Configuration vAdjust for increased workload and throughput
vAllow for additional levels of redundancy vAdjust for added
functionality F Year 2000 compliance (complete 8/1999)