Cancelled per Agency Request 8-8-2005
Scope Statement
Department / Agency: Department of State Treasurer
Project Name: Unclaimed Properties Program – Integrated Document
Management System (UPP-IDMS)
Implementation Phase
TECH-002265
Issue Date: March 14, 2005
Questions Due: March 28, 2005
Due Date for Proposals: April 25, 2005
Project Sponsor: Kenneth Wilkins, Deputy State Treasurer
Project Manager Name: Robert Sickler Project Manager Phone: (919) 715-7530
Project Manager E-Mail: [email protected]
Reference: Technical Services Contract, Attachment 6 — Electronic Document Management Systems
1 Scope Statement Purpose
The intent of this scope statement is to solicit proposals from Vendors to implement an Integrated Document Management System (IDMS) for the Department State Treasurer’s Unclaimed Property Program. The Department of State Treasurer (DST) is currently using the Legato AX System and the Captovation E-Capture System in the Retirement Systems Division and wishes to use the same system for the Unclaimed Property Program (UPP). In addition, DST is requesting the conversion of backfiles. The contract awarded as a result of this Scope Statement will be for services only. The vendor must provide a description of the hardware needed to operate the proposed system. The Department of State Treasurer, under separate contracts, will purchase the hardware. The overall project is comprised of two phases:
Phase I – Requirements Analysis (was completed in July 2003)
Phase II – Implementing the Legato IDMS and conversion of backfiles (The purpose of this scope statement.)
The Department of State Treasurer (DST) on behalf of the Unclaimed Property Program will award this contract to the prime contractor or vendor who can best meet the needs as defined in this Scope
Statement. If the prime contractor is not capable of providing all the services, it is the prime contractor's sole responsibility to form alliances with other firms to meet the requirements of the Scope Statement. The prime contractor will be responsible for performance of all involved parties. All subcontractors must be identified as part of the proposal. The prime contractor is responsible for and must provide the following:
• Prepare a detailed Requirements Document for the UPP IDMS project.
• Prepare a Detailed System Design Document to be used with SB991 Project Approval.
• Prepare a Cost/Benefit Analysis to be used with SB991 Project Approval.
• Prepare a detailed Project Plan and Work Breakdown Structure.
• Develop a Risk Management and Mitigation Plan.
• Develop and implement a Communications Plan for the project.
• Install the Legato IDMS software and the Captovation E-Capture software on the DST-supplied hardware for both test and production systems.
• Configure the new UPP IDMS.
• Design and developing custom workflows to the UPP IDMS.
• Convert the UPP backfiles – paper and CD’s.
• Convert the UPP CD’s, microfiche and microfilm backfiles. All vendors are REQUIRED to submit bids for all Options listed in Section 4.2. DST will determine which, if any, Options will be authorized at the time of award.
• Provide user manuals and training to DST staff - business and technical.
• Provide a project manager to work with the DST project manager.
• Provide ongoing support for the UPP IDMS for a period of three (3) years. (See # 6.3) 2 Purpose and Objective
The Unclaimed Property Program falls under the Administrative Services Division of the North Carolina Department of State Treasurer. As mandated by North Carolina General Statute 116B since 1971, the State Treasurer is the Administrator of the Escheat Fund, which is managed through the Unclaimed Property Program. The purposes of this program are to:
Recover unclaimed or forgotten property Reunite these properties with the rightful owner
Remit the interest earnings on the funds invested to worthy and needy North Carolina students in State-supported institutions of higher education.
Unclaimed property is commonly associated with properties that come from an estate of a person dying without a will and without any known heirs. However, this concept has been broadened to include the recovery of any property that results from the failure of a person legally entitled to that property to make
a valid claim against the holder of the property within a prescribe period of time. Unclaimed property can include cash, stock, mutual funds, bearer bonds, or physical property such as coins, jewelry, and collectibles.
With the increased awareness, volume of documents, processes, and staff, there is a need for a repository of data that can be easily retrieved, shared, and processed among the program staff. Currently, the Unclaimed Property Program needs to process holder reports and claims for approximately 30,000 Holders and 32,000 Claimants a year. The Audit and Compliance staff is responsible for researching Holders and performing approximately 50 physical audits each year. As the program continues to grow, so will the increase in volumes of records each year. The IDMS should allow the users to have
concurrent access and manipulate data that is necessary in performing Unclaimed Property functions while maximizing the efficiency of the staff. The basic functionality of the current process is described in Section 3 - Project Description. Detailed process flows are documented in Appendix A of this document.
The goals of implementing an IDMS include:
• Increase efficiency in claims and receipt processing
• Increase quality of service to claimants and holders
• Reduce document processing time
• Improve accessibility to information
• Enhance document image quality
• Reduce document storage space
• Improve file management and security
• Improve disaster recovery capability
• Improve compliance auditing
• Increase effectiveness of the Unclaimed Property web site The UPP IDMS must provide for the following functionalities:
• Capture and index paper, electronic files and data from electronic forms
• Search and retrieval of stored documents
• View and markup of stored documents
• Provide a systematic method for publishing information to a website
• Foldering capability to organize documents
• Customized workflows to support current Unclaimed Property business processes
• Audit capabilities.
• Interface with Wagers Unclaimed Property System
Additional products may be proposed to meet mandatory and future requirements that cannot be met by the UPP IDMS. These additional products must be fully integrated with the IDMS. The vendors shall propose an associated team that can provide the necessary project management and technical capabilities to implement the IDMS to meet the project requirements.
The current workflow is described in Appendix A. This appendix also identifies several proposed changes to the current process to create a more efficient document management system and a more productive Unclaimed Property process. These changes are noted as such – “New Business Process”.
Additional Business Requirements are listed in Appendix D.
3 Project Description
3.1 Background Information – Business Environment
An electronic means to store reporting forms, claim forms, compliance correspondences, audit work papers, etc. is very limited for some documents (PaperVision) and does not exist for other documents within the Unclaimed Property Program. Those that are electronic are limited to only a few selected users. The Unclaimed Property business processes are very paper intensive and these documents are stored in paper files, microfiche, microfilm, or CD (Digitech Systems, Inc - PaperVision). Since filming and the retrieval of these documents are time-consuming tasks, they create barriers to document accessibility, thereby increasing processing time to an even greater extent. In addition, image quality is scarified.
Holder reports are received in paper format and/or on magnetic media. The information is keyed or loaded into the Wagers Holder database, the data cleansed, and the Holder reports are filed until they are scanned or filmed. These reports are often reviewed after they have been keyed or loaded. The information included on these reports is the key factor in returning property to the rightful owner; therefore, it is imperative that the reports are legible in future years.
Claim forms are received in paper format. Two types of claim forms are received, those
generated by the claimant via website, and secondly those generated by the Unclaimed Property staff using Wagers. Those generated using Wagers are bar coded and are logged into Wagers using a bar code reader. Other claims are manually recorded as being received. The claims processor will review the information submitted with the claim form. If proper documentation is received, the claim will be approved and forwarded to settlement so that a warrant may be
issued. The claim form and supporting documentation are filed until they are scanned or filmed. If proper documentation is not received, the claims processor will notify the claimant of the additional documentation needed and file their claim in a pending folder until such information is received.
Compliance documents are in paper format only. Limited information has been entered into an Access database for tracking purposes only. Work is currently being performed to convert the information on the Access database into the Wagers database and to utilize Wagers to document the compliance process.
The majority of Audit documents are in paper format. Audit findings are keyed into an MS excel spreadsheet and into MS Word but are not being maintained with the audit file. The actual audit program used to perform these audits is an electronic audit program. This program has no external support and plans are to replace this software in the near future.
The processes for the Unclaimed Property Program can be divided into four main business practices/units: Claims, Receipts, Compliance, and Audit.
The Claims Unit attempts to return money or property to the rightful owner. Claimants, people or business who are requesting what they are owed, may inquire about old payroll checks, vendor checks, abandoned bank accounts, stocks, mutual funds, physical property, or any other item turned over to the state as “unclaimed”. The Claims Unit is responsible for ensuring that the claimant has a legitimate request, processing the claim, and sending the money and/or property to that claimant. During the 2003-2004 fiscal year, the Program paid over 32,000 claims, with approximately 200,000 pages.
The Receipts Unit obtains reports of unclaimed property from Holders once or twice a year. Once the money is verified and deposited, the information included on the reports is entered into the Wagers system so Owners can check to see if money is owed to them. Additionally, the money and/or property to be paid to the claimants are processed in the Receipts unit. The
Program processed 7,000 receipts in fiscal year 2003-2004, with approximately 120,000 pages of receipts documentation.
The Compliance Unit researches various holders to ensure that they are following North
Carolina General Statute 116B and the Department’s procedures/policies on reporting unclaimed property. If a holder cannot prove compliancy, the Compliance unit turns its file over to be audited. There are around 9,500 compliance packages on file with approximately 95,000 pages. Approximately 6,000 pages would be added yearly.
The Audit Unit performs on-site examinations of records from holders who are potentially non-compliant. Copies are made of pertinent company documents and kept on file at the Department. Non-compliant holders are made aware of regulations and monitored for future compliancy. Auditors average 50 audits a year, with approximately 25,000 pages.
Appendix A contains a detailed workflow, both narrative and flowchart, describing each of the processes in the Unclaimed Property Program along with the documents used in these processes.
3.2 Background Information – Technical Environment
In August 2002, the Unclaimed Property Program converted to an UPS2000 SQL Server database system developed by ACS Wagers, formerly Ken Wagers and Associates. This database is comprised of multiple interfacing modules. Reports generated from the Wagers system may be printed in hardcopy or exported electronically. The Wagers software does lend itself to imaging. Currently most screens in Wagers contain a document image icon. During Phase I – Requirements Analysis, Wagers advised that the Legato IDMS was compatible with their software. It is a requirement that all access to imaged documents be through the ACS
The Unclaimed Property Program operates from an office location, which is separate from the DST data center and operates in a Terminal Services environment. Additional access is required for:
ACS Wagers – for system support and maintenance.
• • •
ACS – Processing of claims and holder reports. DST staff at the central office location
Architecture
The North Carolina Statewide Technical Architecture (http://www.ncsta.gov/) provides a
framework for the development, implementation, and integration of business systems. Agencies and Vendors should refer to this framework when implementing enterprise applications and/or infrastructure.
4 Results of the Phase I Requirements Analysis 4.1 Conceptual Design Overview For Phase II
The system will provide Unclaimed Property with a repository of current and historical data that can be easily retrieved, shared, and processed among the program staff. The Unclaimed Property program needs to process holdings and claims for approximately 30,000 Holders and 22,000 Claimants a year. The Audit and Compliance staff is responsible for researching Holders and performing approximately 50 physical audits each year. The system will allow the users to access and manipulate data that is necessary in performing Unclaimed Property functions while maximizing the efficiency of the staff.
Each user will have concurrent access to the document management system, the Wagers system, and other needed applications, such as products in the Microsoft Office suite. The users will be able to create, update, and delete documents and data based on their user security authorization profiles.
The system will input data from a variety of sources. Paper documents will be entered into the system via scanners. Data entered into the Wagers system will be imported into data fields in the document management system. Electronic documents will be imported via a document capture utility. The system will have the capability of redisplaying documents in its native application if necessary.
All documents, as needed, outside of generic templates and form letters, will be ultimately associated with a Holder or Claimant. As documents are added to the system, they will be indexed in a method that allows the user to retrieve all necessary data for a particular Holder or Claimant upon request. The processing status of a particular Holder or Claimant file will be easily distinguished.
The system will be capable of defining business processes and then automatically routing documents and the accompanying information from user to user during processing. The routing of defined processes will be to an individual user or to a work pool of from which several users will select work. The work pool, often referred to as a queue, will have the ability to perform workload balancing and dynamic workload allocation. Tasks will be distributed among the users according to each user's skills sets and access security authorization. The work may be distributed according to level of effort, so
that the total workload will be the same, and/or by task to ensure that each user receives a variety of work.
Users will also be able to receive their work from a queue or an electronic in-basket that is similar in concept to an email in-basket. The work will be indexed for transaction type and status. The user selects which file to process in a predefined sequence. Access to online forms, letters, the Wagers system, and other applications will be available to the user. Once the user has completed the processing for his or her function, the workflow is automatically routed to the next user in the business flow for additional processing.
Each process will have an associated status that will indicate whether or not a file is currently being processed. If a file is currently in process, the status will indicate which steps in the workflow have been completed and the current step in which the document is being processed. Processes that are pending will be associated with a pending date, allowing the system to notify the user of items that have exceeded a predefined pending time period.
Worksheets, letters, and other documents currently completed by hand will be converted to electronic files and be made available online. The system will provide the user the capability to print documents via a network laser printer. All documents and document data will be stored on mass storage devices.
The system will be adaptable to changes in the business environment, such as changes to legislation, technology, and processing standards. The system will be scalable to meet potential growth within the Unclaimed Property program.
4.2 Recommended Implementation Approach For Phase II
A phased implementation is recommended for the integrated document management system in the Unclaimed Property Program. The first IDMS implementation would be for Claims, followed by a second IDMS implementation for Receipts, Compliance and Audit. This approach will allow Claims to be implemented earlier and provide Receipts, Compliance and Audit with Lessons Learned from the first implementation. In addition, it provides Claims, which has the most complex process, with more onsite vendor support to facilitate change management and system acceptance.
The backfile conversion will be staggered to support the IDMS implementation listed above. The conversion activities should be started during the construction activities of the IDMS
implementation.
The total project is estimated to take approximately 6 to 8 months with the IDMS
implementation requiring 6 months and backfile conversion requiring 5 months. There will be a 4-month overlap between the IDMS implementation and the backfile conversion. The Design activities will cover all four Unclaimed Property Units and should be followed by the Construct, Test, Conversion and Implementation activities for Claims. After evaluating the Lessons Learned from the Claims activities, the Construct, Test, Conversion and Implementation activities for Receipts, Compliance and Audit would begin.
Due to the low volume of documents to convert, the backfile conversion effort should be done in parallel with the IDMS implementation as shown in the Proposed Implementation Timeline. The backfile conversions associated with the Options below, if awarded by DST, would start after the IDMS is fully implemented.
NOTE: All vendors are REQUIRED to submit bids for all Options listed below. DST will determine which, if any, Options are in the best interest of the State.
The Unclaimed Property management team has analyzed their historical records to determine the requirements for backfile conversion as follows:
Claims – Convert only unprocessed claims. Pending claims shall be converted as responses are received from external sources. The estimated number of pages to convert will be 20,000 pages from hard copy. Closed claims are available on microfilm and CD’s and are seldom referenced.
Option # 1). 400,000 pages on microfilm from 1986 to 2000. Option # 2). 700,000 Pages on CD’s from 2001 to 2004.
Receipts – Convert the current year (July 1, 2004 to June 30, 2005) and the previous 3 years (2001 – 2003) receipt documents, which are the ones most referenced. The current year receipt documents are in hard copy and the previous 3 years are available on CD. Currently, receipts average 120,000 pages a year. Estimates for conversion are 400,000 pages.
Option # 3). 30,000 Holder receipts on microfiche from 1981 to 1985. Option # 4). 530,000 pages of Holder receipts on microfilm from
1986 to 1997, 1999 and 2000.
Option # 5. 55,000 pages of Holder receipts on CD’s for 1998.
Compliance & Audit – Since a Compliance Processor or Auditor must always refer back to previous records, the decision was made to convert all Compliance and Audit
documents; These are only available in hard copy and are estimated at 200,000 pages.
Unclaimed Property will have between 600,000 – 650,000 pages to convert depending on the time of year and the accumulation of additional documents before implementation. Research shows that Unclaimed Property will process approximately 350,000 pages in a year.
4.3 RECOMMENDED PROJECT WORKPLAN FOR PHASE II
Project Initiation
Define and establish team logistics
Define Statement of Work
Develop detail Project Plan
Develop Risk Management Plan
Develop Backfile Conversion Plan
Define Communication Plan
Develop Project Controls – Issue Log, Change Control Procedure
Plan and conduct Kickoff Meeting
Project Control
Manage Project – Scope, Workplan, Resources, Risks, Issues, Change Control
Manage Communications – Weekly Status Reports & Meetings
Review/Approve Project Deliverables
Requirements
Review/Update Business Process Flows
Review/Update Requirements
Design
Define Detail Design for Capture, Retrieval & Workflow Processes
Develop Detail Design for Wagers Interface
Develop Detail Design for Website Interface
Develop Detail Design for Management Reports & Queries
Establish Software Change Guidelines
Develop Detail Design for Custom components
Develop Training Plan & Training Environment
Develop System Test Plan & Test Cases
Finalize the System Architecture
Develop Disaster Recovery Plan
Construct – Claims
Install Test Environment & Configure Network
Construct Processes & Configure Application – Capture, Retrieval, Workflow
Construct Interface to Wagers
Unit test Interface to UPP Website
Construct Management Reports & Queries
Construct & Unit Test Custom Components
Prepare User Procedures
Prepare Training Materials
Test & Train – Claims
Conduct Training for System Test Participants
Conduct System Test Claims – Capture, Retrieval, Workflow Conduct System Test for Interface to Wagers
Test Reports & Queries
Conduct System Test
Conduct User Acceptance Tests
Prepare Operations documentation & Setup automated schedules
Conduct Formal User Training
Implementation – Claims
Install Production Environment & Configure
Implement Procedures & Controls
Finalize Change Management Go Live with Claims
Construct – Receipts/Compliance/Audit
Conduct Lessons Learned from Claims Implementation
Construct Processes & Configure Application
Construct Management Reports & Queries
Construct & Test Custom Components
Prepare User Procedures
Prepare Training Materials
Test & Train – Receipt/Compliance/Audit
Conduct Training for System Test Participants
Test Receipts – Capture Retrieval, Workflow
Test Audit & Compliance – Capture, Retrieval, Workflow Test Reports & Queries
Conduct System Test
Conduct User Acceptance Tests
Prepare Operations documentation & Setup automated schedules
Conduct Formal User Training
Implementation – Receipt/Compliance/Audit
Implement Procedures & Controls
Go Live with Receipts/Compliance/Audit
Post Implementation
Conduct Post Implementation Support
Conduct Post Implementation Evaluation
Conduct Project Closure & Final Project Acceptance
Conversion
Project Control
Finalize Conversion Plan
Develop Detailed Designs for Conversion
Develop Conversion Procedures & Training Materials
Test Conversion Process Conduct Conversion Training
Complete Backfile Conversion Claims Documents – estimate 20,000 pages (paper)
Complete Backfile Conversion Receipt Documents – 400,000 pages (300,000 CD, 100,000 paper) Complete Backfile Conversion Audit & Compliance Documents – 200,000 pages (paper)
4.4 RECOMMENDED IMPLEMENTATION TIMELINE For Phase II
High- Level Schedule for IDMS - Unclaimed Property IDMS Implementation & Backfile Conversion
Phase II Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6
Project Management Project Initiation Detail Design Construct - Claims Test - Claims Implement - Claims Construct - Receipts/Compliance/Audit Test - Receipts/Compliance/Audit Implement - Receipts/Compliance/Audit Post Implementation Support
Conversion - Claims Conversion Receipts/Compliance/Audit Legend
Project Kickoff Meeting
Design Complete Claims Implementation Receipts/Compliance/Audit Implementation
5 Timetable/Schedule 5.1 Scope Statement Dates
The dates provided below are approximate and are for the period up to the date of the award of the contract for this scope statement.
Date Activity
3/14/2005 Scope Statement Issued
3/28/2005 Last Day for Questions
4/11/2005 Response to Questions
4/25/2005 Deadline for Proposal
5/13/2005 DST recommendation completed
6/3/2005 Contract Awarded
6/13/2005 Project Begins
2/28/2006 Project Complete
5.2 High level deliverables
Vendor selected shall be responsible for installing the Legato IDMS software and the Captovation E-Capture software on DST supplied hardware, both for test and production systems; configuring the UPP IDMS; designing and developing customized workflows to meet Unclaimed Property’s needs; providing user manuals and training for DST staff, both user and technical; and provide ongoing software support for the UPP IDMS after implementation. In addition, the vendor will be responsible for conversion of backfiles – paper and CD’s.
Vendors must provide a detailed listing of deliverables that will be produced for the project with estimated completion dates. This listing must include the high-level deliverables outlined below and the desired end date for the project of February 28, 2006.
The high-level deliverables required during the UPP IDMS project follow: 1. Detailed Requirements Definition Document
The Vendor must review the results of the Phase I Requirements Study and revise as necessary to include all detailed requirements.
2. Detailed Implementation Plan including Work Breakdown Structure
The vendor must provide a complete plan of all activities required to meet the project requirements including system design, software installation and configuration, workflow development (to meet custom requirements), user and developer training, conversion, system testing and acceptance testing. Plan must include a detailed staffing plan, including hours to complete. This plan must be maintained by the vendor throughout the life of the project and will be reviewed at weekly
meetings between DST and the vendor. Both vendor and Department resources should be detailed on the plan.
3. Completion of a Cost/Benefit Analysis Document
This document must be in a format required by the SB991 Project Approval process.
4. Installation and Configuration of the Legato IDMS software and the Captovation E-Capture software on site at the DST.
All IDMS software for the test system and production system must be installed and configured on recommended hardware at the DST data center. All workflow development must be completed at the DST office location and not offsite.
5. Completion of a Detail System Design Document
The Detail Design for the system must include all components of the system and provided in the format required by the SB991 Project Approval process.
6. Completion of the UPP customized workflows.
The customized workflows must include all the workflow processes detailed in Appendix A, as well as any new or changed workflow requirements resulting from the Detailed Requirements Document.
7. Completion of System Test
The vendor shall prepare a written test plan designed to demonstrate the successful operation of the system. System testing to ensure the IDMS is functioning and processing the data correctly, must be performed and documented by the vendor and DST. Tests to be performed include end-to-end application testing, stress tests, performance tests to assure that the solution will meet performance requirements under expected user loads, backup and recovery testing and installation testing. End users will participate in the end-to-end application testing. Successful completion of the System Test will be signed off by DST’s project manager.
8. Completion of Training
The vendor must provide training for 75 users, 5 system administrators and 7 developers. This training may be a combination of standard courses and customized, implementation-specific training. Training must take place onsite at the DST office locations, training materials are required and must be provided by the vendor.
9. Commencement of User Acceptance Test (UAT)
The User Acceptance Test will be prepared by the vendor and consist of using the system for a period of thirty (30) business days of continuous operation, at a 99 percent uptime level, between the hours of 7 AM to 5 PM Monday through Friday with no more than one (1) major nor more than five (5) minor problems during the 30 day period. Major problems are defined as system problems affecting scanning and indexing, image availability, workflow capability or any other problems that affect 20% or more of the users for a period of more than 1 hour. Minor problems are defined as all others. Should the limitations for major or minor problems be exceeded during the 30 business day period, the Acceptance Test would be restarted for another 30 business day period.
10. Acceptance of the system by users
After successful completion of the UAT, the system will be turned over to the users for production use.
11. Completion of the Backfile Conversion Process. Completion and verification of the conversion process.
6 Vendor Proposal Cost
A cost summary sheet and detail cost sheets have been provided in Appendix B in order to show the format that must be used by vendors to clearly indicate their proposal costs. The cost information must address the following:
6.1 Services Costs
Services costs shall include implementation services, workflow customization services, training
services, backfile conversion services and other services. A fixed price figure should be provided for the fully implemented cost of the initial system to meet the requirements.
This figure shall cover all costs, including direct and overhead expenses. Travel, per diem, and other miscellaneous costs must be included in this figure. This figure must be broken down as indicated in the format supplied in Appendix B. An indication of the number, role and hours of each of the personnel involved in the project should be provided.
6.2 Software Costs (List under Other costs)
Vendor must include all costs to purchase any additional software components required by their solution. Hardware, operating system and database management software must not be included in the costs.
6.3 Support Costs
Costs to provide UPP IDMS support on a 24 hour x 7-day basis, with a 4-hour response time, must be highlighted separately for each of three years after final acceptance of the system.
6.4 Optional Backfile Conversion Costs
Costs to convert the optional backfile items listed in Section 4.2.
7 Vendor Proposal Requirements
Vendor proposals must be straightforward and concise. They must contain the following separate sections, with no others:
• Section 1: Vendor’s overall approach to implementing the Legato IDMS and the conversion of the backfile. (Limit to 5 pages)
• Section 2: Company Overview. (Limit to 15 pages) Must include:
• Brief history of company and products;
• Management Approach;
• Company and product visions. Must demonstrate commitment to product life and enhancement for at least 5 years;
• Proposed Project Team, including detailed descriptions of how the vendor’s team experience will meet the project requirements. Include team resumes, tailored to highlight their experience and skills in specific relevance to their role on this effort;
• Section 3: References and financial data - must include the following: (Limit to 15 pages)
• References, at least three IDMS implementation projects using Legato AX or similar IDMS.
• References, at least three backfile conversion projects.
• Company financial data – Income Statement and Balance Sheet for the current and two previous years.
• Section 4: Detailed solution (Limit to 100 pages) - a vital part of the Scope Statement response that provides:
• Detailed technical approach
• Team Organization
• Roles and Responsibilities
• High-Level Project Plan (including tasks resources, and estimated duration)
• Projected start and end dates
• A response to the Business Requirements listed in Appendix D
• List of deliverables, following proposed SDLC, with a brief explanation of each one; The list must include at a minimum the following:
• Detailed Requirements Definition Document
• Detailed Project Implementation Plan
• Detailed Design Document
• Cost/Benefit Analysis
• Risk Management Plan
• Communications Plan
• Documented Source Code for any custom development
• System Test Plans
• User Acceptance Test Plans
• User Training Plan
• User Training Manuals
• System Operations Training Plan
• Backfile Conversion Plan
• System Operations Manuals
• Technical Training Plan
• Technical Training Manuals.
• A proposed payment schedule – by deliverable.
• Section 5: Detailed costs for the project including software (other than Legato and Captovation software, OS software and database software) services and training. Cost information must be provided in the format detailed in Appendix B.
• Section 6: Detailed list of hardware that DST must provide to support the proposed UPP IDMS. Appendix C identifies the required information.
Include the following information with the proposal:
• Vendor name
• Vendor Tax Id
• Contact Name, title, address and telephone number of the individual who can negotiate on behalf of the company
8 Evaluation Criteria
The selection criteria will be based on the “best value” concept. A trade-off method of source selection will be utilized when it is in the best interest of the Department of State Treasurer to consider award to other than the lowest priced offer of other than the highest technically qualified offer. Department of State Treasurer may elect to conduct negotiations with one or more vendors and make requests of vendors as may be necessary or proper for best and final offers. For this project, proposals will be evaluated on the following criteria: (each weighted as shown):
Criteria Weight for each General Category Company overview, overall
approach and quality and understandability of the proposal
15% References and financial data 10%
Detailed solution 45%
Cost 30%
9 Selection Process
When the proposals are submitted, they will be evaluated and responses scored based on the evaluation criteria listed above.
10 Administrative Items
• Vendors must submit all questions to [email protected], the IT project manager. Please reference TECH-002265 in the subject line of the email.
• All questions will be compiled and answered and emailed to all eligible vendors on Attachment 6.
• Return one (1) original, six (6) hard copies and one (1) soft copy (cd) of your proposal to the following address:
North Carolina Department of State Treasurer Attn: Sondra Phillips
Reference: TECH-002265
Indicate firm name and scope statement title on the front of each proposal envelope or package. Proposals must be received by 2:00 P.M. on Monday, April 25, 2005. Proposals arriving after this deadline will not be accepted.
11 Execution of Scope Statement
By signing the below, the Offeror certifies that:
This Scope Statement Response was signed by an authorized representative of the Offeror; This Scope Statement Response was not derived through any acts of collusion as stated in NCGS 147-33.100.
The Offeror agrees to all the mandatory terms and conditions and agrees to pay the 2% administrative fee to ITS per Section I, Paragraph B of the ITS Technical Services Contract, The Offeror agrees to abide by all State CIO Policies, Standards and Procedures and in addition, adhere to the Statewide Technical Architecture.
Therefore in compliance with the foregoing Scope Statement and subject to all terms and conditions of the ITS Technical Services Contract, including all exhibits, the undersigned offers and agrees to furnish the services set forth in the Scope Statement if the Scope Statement Response is accepted by the State. Failure to execute/sign scope statement prior to submittal shall render it invalid. Late bids are not acceptable.
Bidder: Federal ID or SS #
Street Address: PO Box Zip
City & State & Zip: Tel No: Toll-Free Tel No:
Type or print name & title of person signing: Fax Number
Authorized signature: Date: Email
Acceptance by Agency is contingent upon ITS approval of the Agency’s recommendation of award. This contract award was approved by ITS on ______________,2005, as indicated by attached certification letter from ITS.
ACCEPTANCE OF SCOPE STATEMENT RESPONSE
If any or all parts of this scope are accepted, an authorized representative of Using Agency shall affix their signature hereto and this document along with the provisions of the Umbrella Contract shall then constitute the written agreement between the parties. A copy of this acceptance will beforwarded to the successful offeror(s).
For Contracting Agency Use Only
Offer accepted this _____ day of __________, 20__ as indicated on attached certification or purchase order
Appendix A
Current Process Flow
This appendix describes the current flow of work, data, and documents for the following processes:
New Business Process – Current unclaimed property related documents that are in hardcopy format will need to be scanned and added to the document management system. This task will need to take place upon receipt of hardcopy documents from external sources.
New Business Process – Documents that are electronic in nature and are either kept on a local or network drive or printed and kept in hardcopy format will need to remain electronic and imported into the document management system. This would include documents received form outside sources such as electronic holder files, or documents created in-house such a forms, letters, reports, etc.
New Business Process – Historical documents being maintained on CD will need to be added to the system. This will include both claim forms and supporting documents and holder reports.
New Business Process – The document management system should include the use of hierarchal controlled vocabulary lists. These list, used in both index and retrieval, prevent incorrectly indexed documents due to spelling errors, and provide quick methods for indexing and retrieval.
New Business Process – Interfacing the document management system to the Wagers system will be necessary to facilitate day-to-day functions.
1 Current Claims Process
M ail D istrib u tor
2ndA p p rov al 3rdA p p rov al R eq u est R eq u est C la im C laim C laim an t H old er D en ied A ttorn ey D ep u ty T reasu rer S ettlem en t C on troller
A cco u n tin g M ail D istrib u tor
C laim s P rocesso r C la im an t S ettlem en t 1 2C 5 2B 2A 3 4 2 E 2D 6 10 1 1 8 7 9 2 C laim s P ro cessor
Request
People who believe they are owed money through the Unclaimed Property program send in a request to the Department. Claims processors then check to see if they are truly owed money, and if so, send claimants claims forms through the mail.
New Business Process – Making it possible for potential claimants to send in requests electronically via the Web would allow the requests to be in the system sooner and eliminate some of the paper.
Claim
Once the claimant completes the claims form and obtains the necessary proof that he is the actual claimant, the form needs to be sent to the Department. The receipt of the claim starts the Claims business process flow.
New Business Process – Received claims generated from Claims Processors can be both scanned and indexed by an additional resource. Online claims require pre-processing to ensure validity of request and must be handled by Claims Processors.
New Business Process – Claimants who have access to scanners should be able to image evidence to be reviewed by the Claims Processors. Currently, faxed images of evidence are accepted in the Unclaimed Property Program.
Step 1: Mail Distributor
This person receives both the requests and the completed claims forms in the mail (at separate times). The mail distributor logs the claims into Wagers. Online claims are documented in the Online Claims Tracking spreadsheet. All are filed in the Claims Received File in date-received sequence. Currently, there is a 1-2 month delay between the time a claim is received and the time it begins to go through processing.
Step 2: Claims Processor
After receiving the completed claims form, the Claims Processor verifies the owner information (proof) and enters information into the Wagers system. If everything with the claim appears to be in order, the Claims Processor gives the 1st approval for the claim and then routes it to the 2nd Approver. All of the paperwork is stapled together and put in a box for the 2nd approval person to review. The exception to this is if the claim is for stock. After preparing the claim, the Stock Claims Processor sends the claim to the 1st approver and then the Stock Claims Processor is the 2nd approval person. Additionally, if the claim is for a Mutual Fund, the Mutual Funds Claims Processor generates a redemption letter requesting that the fund be reregistered. After the Deputy Treasurer obtains the Medallion seal, the redemption letter is sent to the Holder by the claims processor.
New Business Process – The addition of new, trained Claims Processors would help to expedite
services. Currently, there are not enough processors to keep up with the workload and a large backlog exists.
New Business Process – If too many documents or too many pages within a document are provided as evidence and have been scanned into the system, Claims Processors should have the authority to delete
Step 2A: Claimant
If additional information is needed, the Claims Processor generates a letter from Wagers stating such and sends it in the mail to the Claimant. The claim is then placed in a pending file, located in the Claims Processor’s office. Upon receipt of the letter requesting additional information, the Claimant must provide the necessary proof and mail it in to the Department. This action starts the Claims process, again.
New Business Process – A copy of the letter generated from Wagers requesting additional
information needs to be imported (automatically) to the document management system. Doing this provides the Claims Processor with a record of the exact information requested of the Claimant.
Step 2B: Holder
If verification is needed or if the Holder is a Clerk of Court, it is necessary for the Claims Processor to send the claim to the Holder (sends Holder sheet, proof, and the claim). The claim is placed in a pending file until the Holder returns the proper information. When the Holder receives a request for verification from the Claims Processor, or if the Holder is a Clerk of Court (verification is
automatically needed in that situation), it is necessary for the Holder to provide the appropriate information and mail it to the Department to the attention of the Claims Processor. Receipt of the information from the Holder could take several months. This action starts the Claims process, again. Step 2C: Denied
If the claim is denied, the Claims Processor must then go through the denial steps. A claim can be denied if the proper proof was not given or if the claimant is not the rightful owner. If it is
necessary, the Claims Processor sends a letter to the Claimant, informing him of the denied status and keeps a copy of that letter in a denial file that is maintained in date denied sequence. If the Claimant calls, sometimes the denial status is relayed over the telephone instead of by mail.
New Business Process – If a claim is denied, the file for the record should be kept online for a period of one year and then purged. Denied claims are accounted for in Wagers system. Keeping an electronic copy of all the associated documents for a denied claim would allow processors to reuse those documents, should the Claimant get the appropriate supporting evidence within the next calendar year.
Step 2D: Attorney
At times, legal approval is needed (when there are exceptions to the rule); therefore the Claims Processor will contact the Attorney for advice. The work history section of Wagers is updated and the attorney signs and dates the claim. If the services of the attorney are needed during the approval process, typically, the Claims Processor contacts the Attorney by telephone. The attorney then provides legal consultation.
Step 2E: Deputy Treasurer
If the claim is for a mutual fund, the Claims Processor routes the package to the Deputy Treasurer to be sealed. The Deputy Treasurer takes the packet to the bank to obtain a Medallion seal. He then returns the sealed packet to the Claims Processor. This step takes place before it is routed to the Holder in the case of mutual funds.
Step 3: 2nd Approval
The person at the 2nd Approval step double checks the information the Claims Processor approved. If 2nd approval is given and the claim amount is over $5,000.00, the 2nd Approval person routes the claim
to the 3rd Approval step. If there is a problem with the Claim, the 2nd Approval person routes it back to the Claims Processor. This situation is an often occurrence. If the claim is a tangible claim, it is routed to the Claims Processor so that he may mail out the physical property to the claimant. If 2nd approval is given and the claim amount is under $5,000.00, it is routed to Settlement.
Step 4: 3rd Approval
The person at the 3rd Approval step reviews and signs all claims with values over $5,000.00. The claim is then routed to Settlement.
Step 5: Settlement
Settlement uses the Wagers system to review the claim and spot-check it. The batch is prepared on Wagers and the Settlement person prints the Settlement Register (a list of all the claims to be paid out on that settlement) and places it with the claim forms in that batch. A copy of the Settlement Register is made for the Accounting department. Then the Wagers file is sent via FTP (File Transfer Protocol) to the Controller’s Office for authorization. After the batch is sent to the Controller’s Office, the
Settlement person prints out letters to claimants. For stock and mutual funds, in addition to the cash settlement tasks, the stock and mutual funds claims processors perform settlement tasks in Wagers, as well. With mutual funds, the checks are mailed to the claimants by the mutual funds claims processor as soon as they have been settled and the checks have been received from the fund.
Step 6: Controller
After receiving the Wagers file via FTP, the Controller’s Office gives an authorization to transfer money from the general account to the settlement account so the checks can be written, and then passes it to the Accounting department.
Step 7: Accounting
The Accounting department prints the checks and then returns the checks and the Warrant Register Report to Settlement. The System Payment Register Report is also run by Accounting and submitted to Settlement with the printed checks.
Step 8: Settlement
The Settlement person sends the checks, along with the letters printed from Wagers, to the Mail Distributor. When the Mail Distributor returns the envelopes with the checks and letters, Settlement mails them to the Claimants. Before the checks can be mailed, authorization is needed from Accounting that the requisition has been approved (typically an email notification). The settlement person then files the Settlement package in a paid claims file, in order of the date they were paid.
Step 9: Mail Distributor
After receiving the checks and letters from Settlement, the Mail Distributor stuffs the envelopes. If any special handling is required, such as extra postage or the return of original documents to the claimants, it is taken care of at this step. The Mail Distributor then returns the checks/letters/envelopes to Settlement. Step 10: Claims Processor
Step 11: Claimant
If the Claimant is due money, he receives a check in the mail at this step. If the claim was for physical property, the Claimant receives that property in the mail. The entire settlement process takes
approximately one week. Documents
The following documents and document formats are used throughout the Claims process flow.
Document Document Type Volume per year
System Payment Register
Report/Settled Claims Report (Warrant Register from Financial Ops)
Hardcopy (kept 1 year after they are filmed); filmed copy is kept indefinitely; most recently they have been scanning to cd’s
5,200
Claim form Hardcopy 80,000
Clerk of court documentation (proof
that claimant is owed money) Hardcopy 1,500
Corporate actions, Custodian Report .xls 2,400
Denial letters .doc 1,500
Email Hardcopy 100
Escheatment reports (from Holder) Hardcopy 1,000
Evidence (social security cards, death certificates, birth certificates, driver’s license, etc.)
Photocopies, Hardcopies 50,000
Explanatory documents (notes from a conversation, etc.)
.doc 500
Faxes Hardcopy 100
Holder sheet (paper form checklist) Hardcopy 500
Letters from Claimants Hardcopy 2,000
Notices and statements from securities (in place of certificates)
Hardcopy 1,000
Safekeeping printout (state surplus inventory numbers assigned by Wagers)
.xls 1,000
Settled Claims Report (Wagers Report) Hardcopy 1,300
Signature
incumbencies/Guarantees/excerpts from escheats law (all become part of the claims file)
Hardcopies 600
Stock certificates Hardcopies 100
Stock powers Hardcopies 100
Surrendered bearer bonds Hardcopies 100
Wagers forms and letters Hardcopy 1,000
Data
Properties used to retrieve information within the Claims business process flow include:
• Address
• Aggregate Accounts
• Amount of Report
• Claim ID Number
• Date (year reported)
• Federal ID Number • Holder ID Number • Holder Name • Maiden Name/Alias • Name • Property ID • Receipt Number • Report ID • Safekeeping Number
• Social Security Number
• Type of Claim
• Type of Document
3rd Party Applications and Manual Systems
The following 3rd party applications and manual systems are used throughout the Claims process:
• FTP
• Internet – Unclaimed Property website
• MS Office
2 Current Receipts Process M a il D is trib u to r D a ta E n tr y B a n k in g H o ld e r D e p o sito r R e c e ip ts P r o c e ss o r A c c o u n tin g D e p o sito r A n n u a l R e p o r t & C h e c k s A n n u a l R e p o r t & C h e c k s 1 6 5 4 2 3 7 8
Annual Reports and Checks
The Remittance Annual Reports and accompanying checks are sent to the Department 1-2 times a year, sparking the Receipts business process flow. The bulk of these reports are due in May (life insurance) and November (all other), however, throughout the year, various Holders send in a semi-annual version of the report to account for checks not included in their main report. These documents are sent to the Department via paper copies, however, some Holders send in reports in electronic format on a diskette. About 7,000 annual reports came in report year 2003-2004. 85-90% of the time, a check is involved. Sometimes there is more than one check involved. Overall more than 6000 checks are created in this process throughout the year.
New Business Process – Documents imaged in the Receipts process can be scanned by an outside resource; however, indexing will need to be done by qualified Receipts Processors.
New Business Process – It would be beneficial for the Receipts unit to have a scanner that is capable of scanning checks. Photocopying checks to create full-sized paper copies to be imaged creates an
additional step in this flow of work.
Step 1: Mail Distributor
This person receives the Remittance Annual Reports and checks in the mail and distributes them to the Receipts Processor.
Step 2: Receipts Processor
The Receipts Processor receives the reports and checks, enters information into the Wagers system, verifies that the Holder exists in the system, and verifies the amounts in the check report. Auditors assist with this process during peak times.
A. Route to Holder: If there is a problem with the check report, the Receipts Processor will then contact the Holder, typically by phone or email, in an effort to resolve the issue.
B. Route to Depositor: If the report is acceptable, the Receipts Processor sends the information to the Depositor for further processing. If a hold needs to be placed on the report, a note is attached to let the Depositor know its deferred revenue. It then will go into the deferred revenue account until the report can be processed.
Step 3: Holder
If the Holder has been contacted by the Receipts Processor regarding issues with the check report, they will then correct the problem so that the Receipts Processor may proceed.
Step 4: Depositor
After receiving the Receipts package from the processor, the Depositor enters information into Wagers, stamps the report with a unique number and date using the receipting machine, makes copies of checks, and verifies the check amounts against the report. The J-50 spreadsheet is then updated and a deposit slip is filled out. On a normal day, the Depositor performs her duties and gets the deposit to the bank by 11:00 a.m.
New Business Process – Copying checks to place with every related report will no longer be necessary with the use of a document management system. Those items can be linked in the system by compound document management, virtual folder placement, or data properties.
Step 5: Banking
The Depositor takes the deposit slip and checks to the bank. The Depositor then waits while the bank employee verifies the checks against the deposit slip amount, and then stamps the slip and keeps the checks.
Step 6: Depositor
After taking the checks to the bank and depositing them, the Depositor must perform a couple of tasks, including prepping the information for data entry, before completing the process.
A. Route to Accounting: It is necessary for the Depositor to deliver copies to the Accounting department.
B. Route to Data Entry: After prepping the reports, the Depositor turns them over to Data Entry to capture the Owner Information.
Step 7: Accounting
When Accounting receives the copies from the Depositor, they assign a number to each and return them to the Depositor.
Step 8: Data Entry
The Data Entry clerk logs the information into the book (manual process), updates the Wagers system with the owner information. In November, there is usually a backlog for a 2 to 3 month due to the volume of reports being received.
New Business Process – Additional data entry clerks would allow for speedier entry of receipts, therefore decreasing the time it takes for claimants to receive their money.
Documents
The following documents and document formats are used throughout the Receipts process flow.
Document Document Type Volume per year
Checks Photocopies 6,000
Deposit slip Hardcopy (3-part): 1-Banking,
2-Accounting, 3-Depositor 500
J-50 (Cash Receipts Log) .xls 500
Mutual Funds statements Originals or photocopies 5,000
Remittance Annual Report Photocopy or electronic
(proprietary format or .xls); 1 – 1000 pages
107,000
Stock certificates Photocopies 500
Receipts summary report Hardcopy (printed from Wagers) 500
Data
Properties used to retrieve information within the Receipts business process flow include:
• Date Receipted • Document Type • Federal Tax ID • Holder ID • Holder Type • Holder Name • Owner Name • Receipt ID • Receipt Number • Report Amount ($) • Report ID
3rd Party Applications and Manual Systems
The following 3rd party applications and manual systems are used throughout the Receipts process:
• NCAS (North Carolina Accounting System)
• Photocopier
• Receipting Machine
• Wagers
Additional Workflows
In addition to the main Receipts process flow, there are exception processes that take place in the Receipts area. Those business processes are:
• Insufficient Funds A ccoun tin g H old er D ep ositor B ank ing $ $
Ins uf f ic ient Funds
repeat Rec eipts proc es s
1 2 3
4
Step 1: Banking
The bank notifies the Depositor that the Holder does not have sufficient funds to cover a check. They then return the deposit slip back to the Depositor. Insufficient funds scenarios occur with Unclaimed Property Holders approximately 3-4 times a year.
Step 2: Depositor
The Depositor makes a note of the insufficient funds on the old J-50 and then creates a new J-50 sheet and in the Wagers system. Copies of the new J-50 are made for the files and for
Accounting. The Depositor also keeps a copy of the deposit slip.
A. Route to Accounting: The Depositor sends the copy of the J-50 and deposit slip to the Accounting department so they may make changes in their system.
B. Route to Holder: The Depositor contacts the Holder to notify them of the insufficient funds status. This is done typically by telephone and sometimes via email.
Step 3: Accounting
The Accounting department makes the necessary changes in their system to reflect the check not being properly deposited.
Step 4: Holder
After learning that there are insufficient funds to cover a check, the Holder must then start the Receipts process over to correct the mistake.
• Tangibles Process
C laim s P rocessor V ault
A uction C laim s P rocessor
M ail D istrib utor
Ph y s ic a l Pr o p e r ty 1 2 4 3 5 Physical Property
Before the physical property is sent in, the Holder sends in an ASD-127 and an ASD-159 report with the owner’s information and a description of property. The Claims processor checks off the items of significant value on the lists and sends the reports back to the Holder. Where the
physical property is received in the mail, the process begins. Step 1: Mail Distributor
The Mail Distributor delivers the property upon receipt to the Claims Processor. Step 2: Claims Processor
The Claims Processor must enter the physical property into inventory (Wagers, hardcopies) and attempt to contact the owner of the property. Afterwards, for legal reasons, two Claims
Processors must take the physical property to the vault for safekeeping. The annual report is given to the Depositor once entered into Wagers.
Step 3: Vault
Items are stored in the vault, located in the basement of the Albemarle Building, for up to 12 months, with the exception of bonds and stock, which are stored indefinitely. If physical items are not claimed within those 12 months, they are sent to State Surplus Property.
Step 4: Auction
After unclaimed items are sent to State Surplus Property, they are auctioned off to the highest bidder. The proceeds from the auction are sent to the Claims Processor in the form of a check and a log.
Step 5: Claims Processor
The check is given to the Depositor so a receipt ID number can be added and then returned. The Claims Processor then enters the auction proceeds into the system. The money is then held until the owner makes a claim for it.
3 Current Compliance Process
C o m p li a n c e P r o c e s s o r H o l d e r M a il D is t r i b u t o r C o m p lia n c e P r o c e s s o r C l o s e d H o l d e r A u d it o r 1 2 3 5 6 7 4
Step 1: Compliance Processor
The Compliance Processor selects a company (Holder) for review. If that company is potentially non-compliant, the processor contacts them through the mail. An inquiry letter is sent, along with a questionnaire.
New Business Process – Outside resources will be able to scan initial compliance documents; however,
Compliance Processors must do the indexing when a document management system is first implemented.
Step 2: Holder
The Holder, upon receipt of the inquiry, must respond within 30 days. The questionnaire must be completed, and at times, an inter-office review/self audit is requested. It is necessary for the Holder to return the questionnaire to the Department.
Step 3: Mail Distributor
The Mail Distributor receives the returned questionnaire from the Holder and routes it to the Compliance Processor.
Step 4: Compliance Processor
At this point, the Compliance Processor reviews the information submitted by the Holder. If
the Holder fails to respond to the communications sent by the Compliance Processor or if the Holder is seen as non-compliant by the processor, the file is routed to the Auditor.
Step 5: Holder
If further information is required, the Holder will receive a letter in the mail from the Compliance Processor stating such. After compiling the additional information, the Holder then needs to send it to the processor.
Step 6: Closed
If an inquiry is closed, the Compliance Processor marks it ‘closed’. If the Holder has satisfied the questions of the Compliance Processor but the processor doesn’t want to close the record, it is kept open.
Step 7: Auditor
If an audit is necessary, the Auditor will receive the file from the Compliance Processor and then proceed with the audit process. Overall, it takes approximately three months, on average, to complete the Compliance process.
Documents
The following documents and document formats are used throughout the Compliance process flow. The retention for each is indefinite, except documents pertaining to inactive companies. Those companies no longer exist, so the records are destroyed.
Document Document Type Volume per year
Attachments from Holder (subsidiaries listing, procedures, etc.)
Hardcopies 300
Audit notification (from 3rd party
auditors)
Hardcopy 750
Audit report (from 3rd party
auditors) Hardcopy 300
Bank/Insurance Questionnaire Hardcopy 300
Bankruptcy notices Hardcopies 1,400
Compliance Correspondence Info.
Sheet Hardcopy 450
Letter (addressing issues) .doc 250
Letter (inquiry) .doc 250
Newspaper clippings (research
information) Hardcopies 200
Questionnaire (completed) Hardcopy 1,500
Reporting history (Wagers) Hardcopy 50
Telephone call log/Auditor Note
Sheet Hardcopy 50
Data
Properties used to retrieve information within the Compliance business process flow include:
• Compliance processor
• Date of record (each item pertaining to that file needs a date)
• Federal ID number
• Holder ID number
• Holder name
• Holder type
• Status (open, closed, inactive, contact, etc)
• Type of document 4 Current Audit Process
M a i l D i s t r i b u t o r A u d i t o r H o l d e r A t t o r n e y 3 1 2 4 5 S i t e V i s i t Step 1: Auditor
When it is necessary to perform an audit on a Holder, the Auditor sends the Holder an engagement letter, alerting them of the audit. If more information is needed after an audit takes place, the Auditor may also request more information of the Holder.
New Business Process – Outside resources will be able to scan initial audit documents; however,
Auditors must do the indexing when a document management system is first implemented.
Step 2: Holder
If additional information has been requested by an Auditor after an audit takes place, the Holder must comply by mailing the research back to the Department. In some cases the Holder can provide the research material via email.
Step 3: Mail Distributor
If the Holder has mailed documents to the Department in support of an audit, the Mail Distributor receives those documents and routes them to the Audit department.
Step 4: Attorney
If legal consultation is needed, the Auditor will contact the Attorney by phone, by email, or in person. Step 5: Site Visit
In the situation of an audit, it is necessary for the Auditor to visit the site of the Holder. At this time, the Auditor collects information and reviews records, checking for signs of non-compliancy.
New Business Process – Portable scanners would be beneficial to Auditors performing site visits. The use of scanners would prevent them from making copies of all the company records and transporting them back to the Department.
Documents
The following documents and document formats are used throughout the Audit process flow.
Document Document Type Volume per year
Annual reports Photocopy 750
Audit program (checklist of procedures) and AP workpapers
Internal application, .xls 4,925
Audit report .doc 200
Chart of accounts Photocopies 2,000
Comp List (compliance list) Access database 50
Copies of contracts Photocopies 125
Correspondences with Holder Photocopies 1,250
Engagement letter .doc 100
Financial statements Photocopy 750
General ledgers Photocopies 2,500
Interest calculations .xls 50
Journal entries Photocopies 2,500
Outstanding check listing Photocopy 4,500
Policies and procedures Photocopy 150
Record retention schedule Photocopy 100
Research Hardcopies 2,000
Schedules .xls 3,000
Statements .xls 50
Data
Properties used to retrieve information within the Audit business process flow include:
• Audit date
• Auditor
• Document date
• Due Date
• Federal ID number
• Holder ID number
• Holder name
• Status (open/closed)
3rd Party Applications and Manual Systems
The following 3rd party applications and manual systems are used throughout the Audit process:
