New Jersey Department of Labor

1. New Jersey Department of Labor System Interfaces for the NJ SUCCESS system Unemployment Insurance Modernization May 2003

2. Contents Objective of this document The issue of interfaces The purpose of future NJ SUCCESS interfaces The technology of future NJ SUCCESS interfaces Future interfaces list Common Access Wage record: options to improve this key interface Risks & next steps Appendices Appendix A: Current interfaces Appendix B: Business process interfaces

3. Objective of this document… Objective of this document This document provides a high-level statement of the interfaces that are required to integrate NJ SUCCESS into the future UI business and systems environment It also discusses the requirements for the ‘Wage Record’ interface in more detail This document should be read in conjunction with these previous deliverables: • The UI Modernization Technical Architecture and Business process Conceptual Design- overall ambition and approaches for UI Modernization • An inventory of current interfaces, as part of the Baseline Description- current system interfaces, as defined in January 2003 • A list of business interfaces, as part of the Business Process Conceptual Design- process interfaces The details for the interfaces are contained in a separate file, owing to format. Note, the State’s requirement, taken from the RFP, is: The Contractor must prepare an Interface Document that addresses business functions, communications, and systems both internal and external. This document must be a comprehensive inventory describing current and proposed interfaces in detail. This requirement is met by this document and the previous interface deliverables.

4. Its all about the data … “Its all about the data” • One of the critical element of any SUCCESSful system is to: • Get the right data at the right time • Data is the lifeblood of the system and without accurate and timely data, both business processes and systems suffer and create or magnify some of the existing problems in Unemployment Insurance.

5. Data quality and timeliness causes rework … Accurate data is critical for efficient benefit delivery An example Wage Data Inaccuracies or incomplete data at these three key process points cause rework later in the process In 2002, the Division faced challenges in ‘getting accurate data at the right time’

6. Data quality and timeliness causes rework … Inaccurate data leads to later rework… Rework Rework Rework Some rework is inevitable. However, many cases require re-adjudication or other rework due to the quality and timeliness of the data

7. QUALITY QUALITY TIMELINESS TIMELINESS Inaccurate/incomplete data ultimately impacts both quality and timeliness Cause / event Rework Impact No response from employer in time Claim agent takes claimant affidavit Employer not aware of request Wage and Sep info (BC2WR) not available at monetary exam Example 1 Request passed to employer agent Claim agent re-sends form to employer agent BC2WR in adj. center mail pile Wages include severance pay WAGE data based on Sun-Sat week Accounts team work to reconcile. Full reconciliation not possible. UI version of wage / weeks entered in LOOPS and used for benefit calculations Example 2 Claimant states extra weeks worked WAGE data not split over weeks

8. Interface Issues… The issue of interfaces • The concept of interfaces for UI Modernization is at its most basic, a system of needing or providing data (with one exception involving the Tax System), for example: • LOOPS needs wage data to process a UI claim but the data is in the Tax system • AOSOS (Employment Services) needs profile information but the data is in LOOPS • Sounds simple enough, so why are interfaces a problem for the design of any new system? • In most States, system development is usually carried out by a single agency (e.g. UI Modernization – DOL, SACWIS – Human Services, etc.). This agency typically develops the system for their own needs (sometimes from Federal funding and with restrictions). As such the agency “owns” the system and by default claims stewardship over the data. • The issue of stewardship underlies the biggest problems with existing or potential interfaces: • The agency that creates the data refuses to share “their” data with other agencies • The agency that creates the data will provide access to a limited subset of the required data • In some cases where Federally funded, the Feds sometimes restrict access to data

9. Interface Issues… The issue of interfaces (continued) • There are additional stewardship issues even when the creating agency is willing to provide access to data. For example: • Who is responsible for the accuracy of the data? • If the data is “dirty”, who is responsible for cleaning up the data? • Who is responsible for maintaining the routines that transfer the data? • Who is responsible for budgeting and paying for the maintenance of the interface routines? • Who is responsible for deciding if the originating agency is under any obligation to including interfacing agencies in the decision process if the data needs to change?

10. Interface Issues… The result of ‘interface failure’ Creating Receiving Extract File ETL ETL • In the worst of situations, both the creating and receiving systems (for cleansing or reformatting) have created Extract,Transform, and Load (ETL) systems to handle their interfaces. • Having multiple ETL routines adds significant cost to the receiving agency’s overall processes by: • Needing to create, run and maintain the ETL routines (cleansing or receiving) at receiving site • The receiving site having to inform the creating site if the data was incorrect • This happens multiple times for the same data if not fixed at the creating site and slows processing at the receiving site if not corrected promptly • Business processes fail, and political capital is expended if the creating site makes changes • For example, if file formats change on the creating site, then the sending file fails and it takes weeks to identify and fix the problem • NJDOL and its partners have an opportunity tofix this process through UI Modernization

11. Interface Issues… Principles to avoid these common interface issues • The easiest way to solve the problem with interfaces, is to insist on the following principles being applied: • Unless there is a specific security issue or privacy/confidentiality determination, all data is State data • No one agency owns the data- whether funded by the State or by the Federal Government • The agency that creates the data is responsible for: • Maintaining the transfer software- to a statewide ODS or for transfer to the other agency • The accuracy of the data - data consistency and accuracy checks are implemented (ETL routines)- control records are in place to insure that the receiving agency gets what they need • Notifying the receiving agency of any changes that could affect the quality of the data and taking corrective action- as a team of agencies) to implement the required change • The agency that receives the data is responsible for: • providing funding / resources to help the creating agency develop and maintain the transfer software

12. Purpose of future interfaces… Applying the principles: setting up the interfaces • As noted in the later matrices, there are a number of existing and potentially new interfaces required by NJ SUCCESS. For each of these interfaces, UI will need to meet with the creating or receiving Agency to review and address the following items: • Data Layout- What is needed for NJ SUCCESS • Frequency- If changing or new, how often will the creating system need to share data • Who will write and maintain the transfer software- See previous principles; should always be the responsibility of the creating agency • Identifying the process for communicating possible changes to the existing data model • Identify the transfer approach- e.g. Electronic Data Interface (EDI), magnetic tape, image, paper, etc • Creating the service level agreement • Encryption needs • Network needs • Hardware needs

13. Push or Pull?… Push or pull? Receiving information from other agencies • Until the State goes to a state-wide ODS, all interfaces into NJ SUCCESS are a push – the creating system pushes data to NJ SUCCESS in the agreed to formats and time frames through an extract file. • Example: • At the point where the State goes to state-wide ODS, the interfaces can go to pulls. • Example: Tax Extract File NJ SUCCESS ETL Tax ODS NJ SUCCESS ETL ETL

14. Push or Pull?… Push or pull? Publishing information for other agencies • With the creation of NJ SUCCESS (assuming the absence of a state wide ODS), agencies will pull data from the NJ SUCCESS ODS. Example: NJ SUCCESS ODS ETL AOSOS

15. Assumptions… Other assumptions • All interfaces are electronic- no magnetic tape, no paper files • Daily, weekly, monthly, quarterly, yearly, and ad hoc interface capability is required based on the availability and need of data • Data interfaces will run in real time or batch based on availability and need of data • NJ SUCCESS will store data in a ODS- agencies needing data from NJ SUCCESS can use a ETL “pull” routine

16. Technology of future interfaces… Example migration path for the interfaces C. Future interfaces B. Interfaces during transition A. Current interfaces

17. ASES ASES ASES Internal Audit Internal Audit Internal Audit (child support) (child support) (child support) ( ( ( Easytrieve Easytrieve Easytrieve Plus) Plus) Plus) Core online benefit capture applications Core online benefit capture applications Core online benefit capture applications VERIS VERIS VERIS LO8V LO8V LO8V Web Web Web Web Web IVR IVR IVR SAVE SAVE SAVE Secure File Secure File Secure File payments payments payments claims claims (Conversant) (Conversant) (Conversant) RCC RCC Transfer Transfer Transfer application application BAM/QC BAM/QC BAM/QC ICON ICON ICON IEVS IEVS IEVS IBIQ IBIQ IBIQ LOOPS CORE LOOPS CORE LOOPS CORE BARTS BARTS BARTS ALFA ALFA ALFA FEED FEED FEED Wage Wage Wage Reporting Reporting Reporting Crossmatches Crossmatches Crossmatches WDP/ WDP/ WDP/ TRA, TRA, TRA, ACES ACES ACES DABS DABS DABS Statistics Statistics Statistics (CAPS) (CAPS) (CAPS) DUA, DUA, DUA, 4F Disability 4F Disability 4F Disability TRA/NAFTA TRA/NAFTA TRA/NAFTA on on on - - - line line line Files for a Files for a payments payments payments TAX TAX TAX letters, scan letters, scan card, scan card card, scan card Exp. rating Exp. rating Exp. rating record, check record, check 1099G 1099G Scan Card OSOS OSOS OSOS SOIL SOIL SOIL printing, etc. printing, etc. Wage& Wage& Wage& Processing Processing Employer data Employer data Employer data EEIN/INVALID 9 EEIN/INVALID 9 EEIN/INVALID 9 B187 B187 CTTS CTTS CTTS Revenue Division Revenue Division Technology of future interfaces… A. Current interfaces

18. OSOS Technology of future interfaces… B. Interfaces during transition ASES ASES ASES ASES ASES ASES ASES ASES (child support) (child support) (child support) (child support) (child support) (child support) (child support) (child support) Core online benefit capture applications Core online benefit capture applications Core online benefit capture applications Core online benefit capture applications Core online benefit capture applications Core online benefit capture applications Core online benefit capture applications Core online benefit capture applications VERIS VERIS VERIS VERIS VERIS VERIS VERIS VERIS Web Web Web Web Web Web Web Web Web Web Web Web Web RCC RCC RCC RCC RCC RCC RCC RCC IVR IVR IVR IVR IVR IVR IVR IVR Payments Payments Payments Payments Payments SAVE SAVE SAVE SAVE SAVE SAVE SAVE SAVE application application application application application application application application Secure File Secure File Secure File Secure File Secure File Secure File Secure File Secure File claims claims claims claims claims claims claims claims (Conversant) (Conversant) (Conversant) (Conversant) (Conversant) (Conversant) (Conversant) (Conversant) Transfer Transfer Transfer Transfer Transfer Transfer Transfer Transfer ICON ICON ICON ICON ICON ICON ICON ICON BAM/QC BAM/QC BAM/QC BAM/QC BAM/QC BAM/QC BAM/QC BAM/QC LO8V LO8V LO8V LO8V LO8V LO8V LO8V LO8V IEVS IEVS IEVS IEVS IEVS IEVS IEVS IEVS ACES ACES ACES ACES ACES ACES ACES ACES ACES IBIQ IBIQ IBIQ IBIQ IBIQ IBIQ IBIQ IBIQ 1099G 1099G 1099G 1099G 1099G 1099G 1099G 1099G TRA/ TRA/ TRA/ TRA/ TRA/ TRA/ TRA/ TRA/ Internal Internal Internal Internal Internal Internal Internal Internal Processing Processing Processing Processing Processing Processing Processing Processing DUA DUA DUA DUA DUA DUA DUA DUA Audit Audit Audit Audit Audit Audit Audit Audit Interfaces for Interfaces for Interfaces for Interfaces for Interfaces for Interfaces for Interfaces for Interfaces for FEED FEED FEED FEED FEED FEED FEED FEED cross matches cross matches cross matches cross matches cross matches cross matches cross matches cross matches ALFA ALFA ALFA ALFA ALFA ALFA ALFA ALFA Wage Wage Wage Wage Wage Wage Wage Wage BARTS BARTS BARTS BARTS BARTS BARTS BARTS BARTS with external with external with external with external with external with external with external with external B187 B187 B187 B187 B187 B187 B187 B187 B187 statistics B187 statistics B187 statistics B187 statistics B187 statistics B187 statistics B187 statistics B187 statistics Reporting Reporting Reporting Reporting Reporting Reporting Reporting Reporting SOIL SOIL SOIL SOIL SOIL SOIL SOIL SOIL (or other tool) (or other tool) (or other tool) (or other tool) (or other tool) (or other tool) (or other tool) (or other tool) systems systems systems systems systems systems systems systems Crossmatches Crossmatches Crossmatches Crossmatches Crossmatches Crossmatches Crossmatches Crossmatches Experience rating Experience rating Experience rating Experience rating Experience rating Experience rating Experience rating Experience rating One Stop partners, One Stop partners, One Stop partners, One Stop partners, One Stop partners, One Stop partners, One Stop partners, One Stop partners, One Stop partners, Workforce NJ, TDI, Workforce NJ, TDI, Workforce NJ, TDI, Workforce NJ, TDI, Workforce NJ, TDI, Workforce NJ, TDI, Workforce NJ, TDI, Workforce NJ, TDI, Workforce NJ, TDI, HS, Attorney HS, Attorney HS, Attorney HS, Attorney HS, Attorney HS, Attorney HS, Attorney HS, Attorney HS, Attorney General, Treasury, General, Treasury, General, Treasury, General, Treasury, General, Treasury, General, Treasury, General, Treasury, General, Treasury, General, Treasury, EA, Banks EA, Banks EA, Banks EA, Banks EA, Banks EA, Banks EA, Banks EA, Banks EA, Banks TRA/ TRA/ TRA/ TRA/ TRA/ TRA/ TRA/ TRA/ on on on on on on on on - - - - - - - - line line line line line line line line payments payments payments payments payments payments payments payments WDP/ WDP/ WDP/ WDP/ WDP/ WDP/ WDP/ ACES ACES ACES ACES ACES ACES ACES ACES ES ES ES DABS DABS DABS DABS DABS DABS DABS DABS Statistics Statistics Statistics Statistics Statistics Statistics Statistics (CAPS) (CAPS) (CAPS) (CAPS) (CAPS) (CAPS) (CAPS) (CAPS) 4F Disability 4F Disability 4F Disability 4F Disability 4F Disability 4F Disability 4F Disability 4F Disability Files for a Files for a Files for a Files for a Files for a Files for a Files for a Files for a ACH ACH ACH ACH ACH ACH ACH ACH letters, scan letters, scan letters, scan letters, scan letters, scan letters, scan letters, scan letters, scan TAX TAX TAX TAX TAX TAX TAX TAX card, scan card card, scan card card, scan card card, scan card card, scan card card, scan card card, scan card card, scan card Financial Financial Financial Financial Financial Financial Financial Financial Exp. rating Exp. rating Exp. rating Exp. rating Exp. rating Exp. rating Exp. rating Exp. rating record, check record, check record, check record, check record, check record, check record, check record, check interfaces interfaces interfaces interfaces interfaces interfaces interfaces interfaces printing, etc. printing, etc. printing, etc. printing, etc. printing, etc. printing, etc. printing, etc. printing, etc. OSOS OSOS OSOS OSOS OSOS OSOS OSOS Wage& Wage& Wage& Wage& Wage& Wage& Wage& Wage& Employer data Employer data Employer data Employer data Employer data Employer data Employer data Employer data EEIN/INVALID 9 EEIN/INVALID 9 EEIN/INVALID 9 EEIN/INVALID 9 EEIN/INVALID 9 EEIN/INVALID 9 EEIN/INVALID 9 EEIN/INVALID 9 CTTS CTTS CTTS CTTS CTTS CTTS CTTS CTTS Revenue Division Revenue Division Revenue Division Revenue Division Revenue Division Revenue Division Revenue Division Revenue Division

19. Technology of future interfaces… C. Future interfaces

20. Future interfaces list… Future interfaces list • The list of future interfaces defines the high level interfaces requirement for NJ SUCCESS. The list identifies important business and technical information about each interface (discussed overleaf).

21. Standard approach for data and interfaces… Overview of interfaces for NJ SUCCESS Information Sharing FederalDOL federal reporting Others Process linkages Stateinformation Non-State information Temporary Disability Insurance Attorney General fraud prosecutions Cross-match checks INS SAVE SOIL IRS TRA health payments(to be) Workforce Partners re-employmentservices NJ SUCCESS Employer Accounts Social Security Data VERIS Other states’ wage claim information IBIQ Interstate Connection Network ICON New Hires Others cross-match Employer Accounts Tax Dept of Human Services child support Financial Bank payments / clearing house Treasury

22. Future interfaces list… Guide to the future interfaces list • Key information • Source application name and organization • Target application name and organization • Is the interface part of the future architecture? • Does the interface exist in the current architecture? • Will the interface be required in the future architecture? • Technical description of the future interface • Will the interface be bi-directional? • Type of interface technology anticipated • Business description of the future interface • Is this a process or data interface [CHANGE] • Corresponding business process(s) • Description of how it corresponds to the process

23. Future interfaces list… Future interfaces list – see Excel sheet for more details

24. Common Access … Common access interfaces • We are making a distinction between File Transfer Data Interfaces and Common Access Interfaces. A File Transfer Data Interface is where the creating system sends data (through a file) to the receiving system. • A Common Access interface is where two (or more) applications share a common ODS. In this example, Revenue creates Wage data and stores it in a Wage ODS. NJ SUCCESS, and Tax all accesses the WAGE in a read only mode. Tax Extract File NJ SUCCESS ETL WAGE ODS Tax NJ SUCCESS

25. Common Access … Common access interfaces • There are two potential Common Access interfaces: • With Revenue and Tax for Wage Information • With Tax for Employer Account Information

26. Common Access … Common access interfaces • Revenue and Tax for Wage Information • Pros: • Eliminates multiple Data interfaces • Eliminates storing of redundant data in multiple State data stores • Data is in sync -insures reliability of data since we are sharing the same Data Store • Data is available real-time • Cons: • Requires getting three agencies to agree and make a common decision

27. Common Access … Common access interfaces • Tax (Employer Accounts) for Employer Information • Pros: • Adds Employer information to NJ SUCCESS • Eliminates a potential data interface • Eliminates the potential storing of redundant data in multiple State data stores • Data is in sync -insures reliability of data since we are sharing the same Data Store • Data is available real-time • Cons: • May need to upgrade performance characteristics of Tax - Employer Accounts ODS to handle access (read only) from another system

28. WAGE Interface … The WAGE interface • Wage is one of the more critical data structures needed by Unemployment Insurance for the processing of a claim. • But processes surrounding Wage data are somewhat unique in that the data is assembled by one division (Revenue) in the Department of Treasury but almost exclusively used by two other divisions – Employer Accounts and Unemployment Insurance in the Department of Labor. The State included the Wage File creation processes in Revenue as part of the decision to create the Division of Revenue. • The Division of Revenue provides the Wage information to Employer Accounts. Employer Accounts provides Wage information to Unemployment Insurance. There are no Service level agreements are in place between Revenue and Employer Accounts or Employer Accounts and UI.

29. WAGE Interface … The WAGE interface – as it pertains to UI (today) EA stores the alternate wage records when information Is received from UI. Tax will keep these records even if real wage records are eventually received from Revenue. There are situations when UI will create alternate wage records for a claim. These are sent Tax. Revenue Employee Accounts UI Wage Data On receipt of the file from Revenue, EA suspends and fixes problems with the Wage data. These fixes are not sent back to Revenue. UI receives Wage information through the E extracts file and posts these to the WAGE file (DB2). LOOPS accesses WAGE file (cost: $1M a year to maintain). Revenue creates end sends Wage data files to EA on a nightly basis Wage Data Employers (or their agents) send Wage data via magnetic tape, internet , EDI or paper forms on a quarterly basis Wage data is used by agencies other than Employer Accounts and UI (e.g. Disability Insurance, Controller’s office and cross-match agencies

30. WAGE Interface … Problems with today’s WAGE interface • With no service level agreement with Revenue, the Employer Accounts division does not always get accurate information • Revenue runs (at best) minimal accuracy checks on data before it is sent to Employer Accounts division • Employers ask for information by locations. These are provided to the employers (location codes or SYN bytes) but the employers do not send in subsequent Wage with these codes • The Employer Accounts division runs a series of consistency and accuracy checks on the data received from Revenue. • EA has identified over 50 different reasons for suspending the Wage data received from Revenue. • EA suspends the problem data until someone (in EA) “corrects” the problem data • EA does not provide these corrections to Revenue – Revenue does not need these adjustments for their processes

31. WAGE Interface … Problems with today’s WAGE interface (continued) • UI claimants may have valid proof of wages even if the Wage File has no evidence of this information – creating an out-of-sync problem across the 3 agencies. • UI uses this information as proof of wages and for determination of benefits – creating an Alternative Wage Record • UI provides this Alternative Wage Record information to EA but not to Revenue • If Revenue eventually receives the Wage information from the employer, it sends it through normal channels and is stored in the Wage file (the file keeps both the wage record sent by the employer as well as the Alternative Wage records defined in UI) • Revenue may inactivate an employer for reasons specific to Revenue. This same employer may still need to exist as active for EA or UI reasons • There is no communication, process, or data interface capability to handle these situations • Employer accounts, DOR, DIT, OIT/Treasury and OIT/Labour are in constant communication in an effort to synchronize employer registration/status data in TAXREG and TAX

32. WAGE Interface … The WAGE interface (future) Tax Revenue UI Wage ODS UI continues to update The ODS with Alternative Wage Records (should be Reduced by front end Wage ETL checks Wage ETL Wage Data WAGE ETL routines edit data, problems are sent back to Employers or their agents Wage Data Employers (or their agents) send Wage data to the State via EDI or Internet (Eliminate Paper Forms and Magnetic tapes)

33. WAGE Interface … Getting to the future WAGE interface • Members of the Revenue, Tax, and UI business and IT communities need to come together for common planning • Acknowledging that Wage data is needed by EA and UI • Identifying the data rules needed by each group (e.g. When is a employer ‘inactive”) • Designing the ODS and Wage ETL • Engaging in discussions with employers and their agents to move to a electronic or internet based data transfer mechanism • Identify if penalties are assessed if employers continue to file on paper • Identify which of the three agencies is the “owner” of the Wage ETL and ODS database or create a Service Group that is separate from all three agencies • Identifying service level agreements • Identify resources and costs needed to implement the approach • Build, test, and implement the ODS and Wage ETL

34. Risks and next steps… Interface risks and next steps • Key Risks: • Getting creating agencies to cooperate • Identifying what we can do for interfaces now that is not throw away for NJ SUCCESS • Next Steps: • Form a group to review the interfaces • Look at making all existing interfaces electronic feeds • Determining whether it would provide value to start refreshing/reengineering certain existing interfaces • Identify where it makes sense to use Common Access Interfaces (e.g. Wage Data) • Identify Foundational Projects • Start discussions with the agencies, groups that create the data