Technical Assistance Consultant s Report

Transcription

1 Technical Assistance Consultant s Report Project Number September 2014 Maldives: Developing the Revenue Administration Management Information System (Financed by Technical Assistance Special Fund) Prepared by Invenio Business Solutions Berkshire, United Kingdom For: Ministry of Finance & Treasury Maldives Inland Revenue Authority This consultant s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project s design.

2 TA-7946 MLD: Developing the Revenue Administration Management Information System Tax & Revenue Management SAP ( ): MIRA Phase II Final Report PROJECT IDENTIFICATION Project Name CPI/Project Number Project Type (CBI, Implementation, CSS, Upgrade, Internal, other) MIRA TRM Project Phase II TA SAP ( ) Implementation & Support Customer Name Customer Number Planned Start/Finish Maldives Inland Revenue Authority / SAP Customer Partner Project Sponsor SAP Project Director Asian Development Bank SAP Project Manager Customer Project Manager Partner Project Manager Hassan Zareer Harsha Bajaj Author Document Location (repository/path/name) Harsha Bajaj \\store\mira DATA\SAP TRM Project\Phase II\02 - Final Preparation\S - Supporting Documents Version Status Date Document Classification 1.0 Final Confidential REVISION HISTORY Version Date Description Initial submitted to ADB Revised included the information as per the received from ADB on MIRA SAP TRM Phase II Final Report_v1.0 Page 1

3 TABLE OF CONTENTS 1. Document Purpose Project Overview Executive Summary Project Details Inception Summary Deliverables Milestone Execution - Business blueprinting phase Summary Deliverables Milestones Execution - Realization Phase Summary Deliverables Milestone Execution Final Preparation Phase Summary Deliverables Milestone Page 2

4 1. Document Purpose As per the Contract (No S52121) entered between Asian Development the Bank (ADB) and Invenio Business Solutions, United Kingdom (CMS No ), to assist the Government of Maldives in developing the Revenue Management System, Invenio Business Solutions is required to submit final report on go live of the remaining 4 revenue types. This document is the final report. 2. Project Overview 2.1 Executive Summary ADB agreed to assist the Government of Maldives (the Government) with technical assistance (Technical Assistance) for the TA MLD: Developing the Revenue Administration Management Information System Tax and Revenue Management SAP ( ) by an agreement (The Technical Assistance Agreement) executed between the Government and ADB on the 19th of January, ADB requested Invenio Business Solutions, (the consultant) to work under the contract (the services) as detailed in the Terms of Reference (appendix A) of the contract and includes Conduct process of introducing 5 new taxes in to the SAP TRM system o General GST o Tourism land rent o Agriculture lease rent o Vehicle fee o Company fee Provide support for existing SAP TRM implementation at MIRA Of the five new tax types, General GST is form based tax and the remaining 4 are object based taxes. Maldives Inland Revenue Authority (MIRA) was established as a separate and independent tax collection and administration authority under the Tax Administration Act which was ratified on 18 March In Phase I of the project, MIRA implemented 2 tax types, Business profit tax and GST - Goods & Services Tax (Tourism related) on SAP TRM platform. These have been live and fully functional since go- live. The objective of Phase II of the project was to include the 5 more tax types/ fees including General GST. This project has been completed on time and on budget and the 5 tax types are now live and functional. Page 3

5 The overall project duration was six and a half months. The project followed a predefined and proven methodology and adopted the AcceleratedSAP Methodology for this implementation. 3. Project Details 3.1 Inception Summary Invenio Business Solutions, had the resources (as per clause 3 and appendix B of the contract) available onsite on 10 th July The contract was extended on request of MIRA to 1 st December, 2013 instead of 25 th November as per the original plan to compensate the late start. The required approvals were taken for the revised timelines. On the commencement date, MIRA Phase II project kick- off meeting was scheduled and was attended by the entire project team. The consulting team presented an overview of the following- 1. Project Scope 2. Project Schedule 3. Project Team 4. Project Approach It was agreed to follow the predefined and proven methodology and to adopt the AcceleratedSAP Methodology for this implementation which consisted of the following phases- 1. Project Preparation Phase 2. Blueprint Phase 3. Realization Phase Page 4

6 4. Final Preparation Phase 5. Go Live Support Phase Deliverables As part of the Project Preparation Phase, it was agreed to finalize the Blueprint phase of General GST as well. Apart from the Business Blueprint document for the General GST, the following deliverables were agreed as part of the scope for the Project Preparation Phase. Project Phase Stream Document / Activity Name of Deliverable Primary Responsibility Project Preparation PM Supp.Docs MIRA TRM Project - Communication Plan_v1.1.xls Invenio Project Preparation DTM Supp.Docs MIRA TRM Project - Data Migration Strategy.doc Invenio Project Preparation PM Supp.Docs MIRA TRM Project - Issue & Risk Log.xls Invenio Project Preparation PM Supp.Docs MIRA TRM Project - Resource List and Schedule (v1.0).xls Invenio Project Preparation PM Supp.Docs MIRA TRM Project - Roles & Responsibilities.docx Invenio Project Preparation PM Supp.Docs MIRA TRM Project - Status Report (week xx).doc Invenio Project Preparation BPM Supp.Docs MIRA Workshop Schedule (v1.1).xlsx Invenio Secondary Responsibility Project Preparation ISM Document Test Strategy Document Invenio Project Preparation TRA Document Training Plan for core team Invenio MIRA Project Preparation PM Document Detailed Scope document Invenio MIRA Project Preparation PM Document Implementation strategy Invenio MIRA Project Preparation PM Activity MIRA Project Resource finalization MIRA Invenio Project Preparation PM Activity Consulting Project Resource finalization Invenio MIRA Project Preparation PM Document Project standards and procedures Invenio MIRA Project Preparation PM Document Project Organization Structure MIRA / Invenio Project Preparation PM Document Preliminary Project Plan Invenio Project Preparation PM Document Project Charter document MIRA / Invenio Project Preparation PM Activity Sign- off - Project Preparation MIRA Milestone Invenio presented the deliverables as agreed in the previous section to MIRA. The same were reviewed, feedback incorporated and accepted by MIRA. In view of this, MIRA Project Manager signed- off the completion of the Project Preparation Phase and Blueprint Phase for the General GST. 3.2 Execution - Business blueprinting phase Summary The second phase kicked off on 18 th July, The scope of this phase was to complete business blue print documents for four object- based tax types and go- live with General GST. Go- live of General GST Goods and Services Tax (GST) is a tax charged on the value of goods and services supplied in the Maldives from 2 October 2011 onwards. GST is charged under the Goods and Services Tax Act Page 5

7 (Law Number 10/2011). It makes a clear distinction between suppliers of tourism goods and services and suppliers of other (general) goods and services. Registration is compulsory if the value of taxable supplies of a business exceed MVR 1 million per annum. However, importers of goods to the Maldives and suppliers of tourism goods and services are required to register even if the value of their supplies does not exceed the MVR 1 million thresholds. The Act imposes GST at the rate of 3.5% from 2 October 2011 to 31 December 2011 and 6% from 1 January 2012 onwards. The solution delivered coved the registration, tax return processing, payment and other accounting related processes. The existing master data model, implemented in phase 1, was extended to be used for GGST The General GST go live was declared on 25 th August, To achieve this, following activities were performed: As part of the consulting team's responsibilities, the following tasks were completed: 1. Configuration 2. Development of forms/reports for General GST 3. Creating System Integration scripts and test result documentation 4. Resolve UAT issues 5. Data migration As part of the MIRA's responsibilities, the following tasks were completed: 1. User acceptance testing 2. Cleansing of historical data 3. Providing the form data and open items from legacy system in SAP templates Configurations done consisted of the following: 1. A new form bundle type was defined for General GST filing 2. ICR categories were created for monthly and quarterly filing 3. New G/L code was created and assigned 4. Additional sub- transactions were added to identify the different GST liabilities 5. List of allowed payment currencies were configured at cash desk level Data migration activities consisted of the following: 1. Master data creation - business partners, contract account and contract object. 2. Open Items and Payments - Dunning and clearing locks were set on the migrated open items and payments. As per MIRA s decision forms had to be migrated along with their history. This was done to cater for amendments which will happen in future in SAP for which original filing was Page 6

8 done in legacy system. An additional conversion program was developed for form data migration. Business blueprinting for 4 new tax types The business blueprinting phase kicked off on 18 th July, Workshops were held with MIRA to understand the as- is process of the following 4 tax types. 1) Tourism Land Rent MIRA currently has approximately 200 Leased islands for tourism sector and receives quarterly rent payments from the Lessees. Tourism rent, effective from 1 January 2011 onwards, is governed by the second amendment to the Maldives Tourism Act (Law No: 2/99) and the details are laid in the Land Rent Regulation (No: 2010/R- 20). Prior to 2011, a lease rent was charged based on the pre- set rates per bed basis as per the lease agreements. The rent on lands and islands leased to build tourist resorts, tourist hotels and yacht marinas are determined based on the mean tide land area registered at the Ministry of Tourism, approved by the Land Survey Authority of Maldives. Rent shall be paid in four calendar quarters before the start of each Quarter and shall be made in United States Dollars or any other foreign currency stipulated by the Government. The solution proposed covers the following processes: The registration process for Lessee(s) registered with Ministry of Tourism (MOT) Object Based Processing Periodic invoicing and billing Collections and Disbursement Payment options and Receipt printing Revenue Accounting Instalment, Penalties, Dunning 2) Agriculture Lease Rent Rents collected from Agricultural Islands are based on the agreements signed between different parties and Ministry of Fisheries and Agriculture. The agreements specify the amount to be paid and the due dates for the payments. MIRA currently has approximately 150 registered Leased Agricultural Island. All terms and conditions of a Leasehold agricultural island are governed by an individual agreement signed between parties viz., the Ministry of Fisheries and Agriculture and the Lessee. MIRA receives Lease rent from such Agricultural land based on these individual agreements which govern the Lease amount, tenure and due dates of lease rent payment. Upon signing a Lease Agreement, the Ministry of Fisheries and Agriculture sends a copy of the Lease agreement and Page 7

9 relevant documents to MIRA. MIRA in turn, commences collection of Lease Rentals based on the terms defined by the Agreement. The late payment fine is 0.5%, or a percentage specified by the agreement, on the outstanding principal amount per each day of delay. The solution proposed covers the following processes: The registration process for Lessee registered with Ministry of Fisheries and Agriculture (MOFA) Object Based Processing Periodic invoicing and billing Collections and Disbursement Payment options and Receipt printing Revenue Accounting Deferment, Penalties, Dunning 3) Company Fee MIRA currently has approximately 11,100 registered companies who are liable to pay annual fees. The Annual Fee is levied under Law No.10/96 on all public and private companies registered at the Ministry of Economic Development (MED), this is also applicable to Co- operative Societies. These companies and Co- operative Societies are required to initially make a one- time initial registration fee to the Ministry of Economic Development and make subsequent annual payments at MIRA. The Registration, Annual Fees and Late Payment Fees will be determined based on the agreed upon schedule in the as mentioned in the law. The solution proposed covers the following processes: The registration process for annual fee for Company and Co- operative Society payment Object Based Processing Periodic invoicing and billing Collections and Disbursement Payment options and Receipt printing Revenue Accounting Deferment, Penalties, Dunning 4) Vehicle Fee MIRA currently has approximately 93,000 registered vehicles and the owners of these vehicles are liable to pay regular fees to MIRA on an annual basis. This fee is determined based on the Engine Capacity/tonnage of the Vehicle. Moreover, the motor vehicle impounding fee under a given vehicle will also be managed in the system. Page 8

10 Currently the Annual Motor Vehicle Fee is levied under Law No. 05/2009 on all Vehicles registered by the Maldives Transport Authority whereby they are liable to pay the annual vehicle fees. The amount is determined based on the vehicle type and its engine capacity. The solution proposed covers the following processes: The registration process for Motor Vehicle Annual Fee Payment Object Based Processing Periodic invoicing and billing Collections and Disbursement Payment and Receipt/Sticker printing Revenue Accounting Penalties/Fines, Dunning, Reporting Business Blueprint documents were prepared and shared with MIRA. Review meetings were held to discuss the solutions proposed and the scope of work for implementing them in SAP. The final result was the business blueprint documents for the above described four tax types Deliverables The business blueprint phase included- G- GST go- live and business blueprint documentation for the 4 object based tax types. The following list of documents / activities were completed as part of the deliverable. The same are agreed, accepted and signed off by MIRA. Sort Project Phase Stream Document / Activity Name of Deliverable Primary Responsibilit y Seconda ry Respons ibility 11 Business Blueprint BPM Supp.Docs MIRA TRM Project - User Role Document Invenio MIRA 12 Business Blueprint TRA Supp.Docs MIRA TRM Project - Training Project Plan Invenio MIRA 13 Business Blueprint TRA Supp.Docs MIRA TRM Project - Training Infrastructure Checklist.xls MIRA Invenio 14 Business Blueprint TRA Supp.Docs MIRA TRM Project - Training Environment Strategy Invenio MIRA 16 Business Blueprint ISM Supp.Docs MIRA TRM Project - Test Planning.xls Invenio 17 Business Blueprint DTM Supp.Docs MIRA TRM Project - Manual Data Migration Design MIRA 18 Business Blueprint DTM Supp.Docs MIRA TRM Project - Data Quality Plan MIRA 20 Business Blueprint ISM Supp.Docs MIRA TRM Project - Testing Strategy MIRA 21 Business Blueprint TSM Supp.Docs MIRA TRM Project - System Administration Procedures Invenio 22 Business Blueprint PSM Supp.Docs MIRA TRM Project - Support Strategy and Procedures MIRA 23 Business Blueprint TSM Supp.Docs MIRA TRM Project - Authorization Requirements and Design Invenio 35 Business Blueprint BPM Document Organizational structure definition MIRA / Invenio 36 Business Blueprint BPM Document Organizational structure mapping into SAP Invenio MIRA 37 Business Blueprint BPM Activity Harmonize the identified Business Processes MIRA / Invenio 38 Business Blueprint BPM Activity Map major business flows and assessment of coverage / process variations Invenio MIRA 39 Business Blueprint BPM Document Create Business Blueprint Document Invenio MIRA 40 Business Blueprint BPM Document Business Process document - sign- off, completeness for each application component MIRA 41 Business Blueprint BPM Document List of WRICEF Developments for the new tax types to be configured MIRA Invenio 43 Business Blueprint BPM Activity Reporting requirements for the 5 new tax types configures, with formats MIRA Invenio 44 Business Blueprint DTM Activity Data Cleansing MIRA 45 Business Blueprint DTM Document Structure Map of target fields Invenio 46 Business Blueprint DTM Document Field mappings from legacy systems MIRA 47 Business Blueprint DTM Document Functional Specification for verification programs MIRA 48 Business Blueprint DTM Document Identify objects for Data Migration Invenio MIRA 51 Business Blueprint PM Document Finalize Detailed Scope Invenio MIRA 52 Business Blueprint PM Document Final project plan Invenio MIRA Page 9

11 3.2.3 Milestones Invenio presented the deliverables as agreed in the previous section to MIRA. The same were reviewed, feedback incorporated and accepted by MIRA. In view of this, MIRA Project Manager signed- off the business blueprinting phase of the four object- based tax types and go- live of General GST. 3.3 Execution - Realization Phase Summary The realization phase kicked off on 01 st Sep, The scope of this phase was to carry out the configuration, complete development of Z objects identified for the 4 tax types, conduct the integration testing and user acceptance testing. Configuration This activity was carried out by Invenio and included setting up the following Form bundle types Scenarios Facts Master Data - CA/CO Types, Revenue Types Configuration of document types, main/sub transactions, G/L Assignment for 4 tax types Inbound Correspondences Category Configuration all 4 tax types Development objects During the BBP phase, lists of developments were identified for each tax type under the following categories: Page 10

12 These developments were reviewed and delivered via standard functionality/reports, enhancements and one or more z objects. All the developments were completed and unit tested by Invenio during the realization phase. Integration Testing After the completion of configuration and development and unit testing of objects, system integration testing was carried out by Invenio for all 4 tax types. The system was tested to ensure the current configuration follows the business process as described during the BBP Phase. Test scripts and test result documentation was prepared, shared with and approved by MIRA. User Acceptance testing After completion of Integration testing, MIRA conducted the user acceptance testing for the 4 tax types. This has been completed, approved and signed off by MIRA. At this stage, there are some open issues listed in the sign- off document and a mutually agreed solution shall be delivered Deliverables The following list of documents / activities were completed as part of the deliverable. The same are agreed, accepted and signed off by MIRA. Page 11

13 3.3.3 Milestone Invenio presented the deliverables as agreed in the previous section to MIRA. The same were reviewed, feedback incorporated and accepted by MIRA. In view of this, MIRA Project Manager agreed to sign- off the completion of the Realization Phase for the four object- based tax types. Page 12

14 3.4 Execution Final Preparation Phase Summary The final preparation phase kicked off on 21 st Oct, The scope of this phase was to prepare the system for go live which included transporting the objects to production and performing the loading of production data from legacy systems into the production environment. The go live of the NTR was declared on Tax Type Agriculture Lease Rent Tourism Land Rent Company fee Vehicle Fee Go Live date As part of the consulting team's responsibilities, the following tasks were completed in final preparation phase: 1. Identifying the requests to be moved to the production system. 2. Performing the data load As part of the MIRA's responsibilities, the following tasks were completed: 1. User ID creation 2. User Roles & authorisation 3. Create support Id with display authorization 4. GUI installation for users 5. Reset basis password in PRD 6. Cleansing of historical data and providing the form data and open items from legacy system in SAP templates Deliverables The following list of documents / activities were completed as part of the deliverable. The same are agreed, accepted and signed off by MIRA. Document / Activity Name of Deliverable Primary Responsibility Secondary Responsibility Activity GO live of Tourism Land Rent Invenio MIRA Activity GO live of Agriculture Lease Rent Invenio MIRA Page 13

15 Activity GO live of Company Fee Invenio MIRA Activity GO live of Vehicle Fee Invenio MIRA Invenio Business Solutions provided support to MIRA for post go live issues reports for a period of 2 weeks Milestone Invenio has presented the deliverables as agreed in the previous section to MIRA. The same have been reviewed, feedback incorporated and accepted by MIRA. In view of this, MIRA Project Manager has agreed to sign- off the go live of the four object- based tax types. Page 14