# Presentation: 267452

## Closing Out My APD	

- Moving Beyond Certification

- a presentation by the Office of Child Support Enforcement

## Today’s Guests

- Closing Out My APD ***Moving Beyond Certification***

- Steve Schiffelbein , Kansas
- Marie Theisen, Iowa
- Curtis Rose, Colorado
- Joe Bodmer, OCSE in Washington, DC

## Closing Out My APD Moving Beyond Certification

- Many States are approaching or have achieved certification of their ACSES.
- Many States have entered routine maintenance mode.
- State staffs have begun asking questions about the need for and purpose of APD’s after system certification.

**Introduction**

## State staffs also asked about the content and format requirements of APD’s for their systems now that they were entering or were in an Operations and Maintenance (O&M) mode.
The advent of APD Reform the last two years has moved a number of Federal agencies to revisit the APD process.

- The advent of APD Reform the last two years has moved a number of Federal agencies to revisit the APD process.

- Closing Out My APD ***Moving Beyond Certification***

## Closeout APD - Catalyst For Change
   Historically, Closeout APD use is rare.
   Most States in CSE had never seen the   need for or used a Closeout APD.
   Other major Federally-funded programs   have similar experiences with Closeout   APD’s – limited use and need.
   With States now getting certified, queries   have arisen as to Closeout of an APD.

-    Historically, Closeout APD use is rare.
-    Most States in CSE had never seen the   need for or used a Closeout APD.
-    Other major Federally-funded programs   have similar experiences with Closeout   APD’s – limited use and need.
-    With States now getting certified, queries   have arisen as to Closeout of an APD.

- Closing Out My APD ***Moving Beyond Certification***

## Closeout APD - Catalyst For Change
   Result was the need to create policy and   process based on existing regulation   and guidance.
   In addition, we looked for related impacts   that could provide opportunities for   positive change – and we found one:     the  “once enhanced, always enhanced”   FFP definition for APD’s can now be   eliminated in certain cases.

-    Result was the need to create policy and   process based on existing regulation   and guidance.
-    In addition, we looked for related impacts   that could provide opportunities for   positive change – and we found one:     the  *“once enhanced, always enhanced”**   *FFP definition for APD’s can now be   eliminated in certain cases.

- Closing Out My APD ***Moving Beyond Certification***

## Considering Closing-out Your APD ?
   What is a “Closeout” APD ?
   Factors affecting whether to Closeout an   APD.
   Format for a Closeout APD.
   Why Would A State Keep an APD open ?
   A policy change – “once enhanced, always   enhanced” is going away. 

-    What is a “Closeout” APD ?
-    Factors affecting whether to Closeout an   APD.
-    Format for a Closeout APD.
-    Why Would A State Keep an APD open ?
-    A policy change – “once enhanced, always   enhanced” is going away.

- Closing Out My APD ***Moving Beyond Certification***

## What is a “Closeout” APD ?
The Closeout APD represents the last APD required to fully and finally describe all past project activities, cost, benefits, and functional-compliance with Federal certification requirements (PRWORA and FSA88), and with regulatory requirements for Federal funding.

- The Closeout APD represents the last APD required to fully and finally describe all past project activities, cost, benefits, and functional-compliance with Federal certification requirements (PRWORA and FSA88), and with regulatory requirements for Federal funding.

- Closing Out My APD ***Moving Beyond Certification***

## What is a “Closeout” APD ?

All informational requirements for a fully approvable, ongoing ACSES project APD must also be included in the project’s final “Closeout” APD.
There are some exceptions.

- All informational requirements for a fully approvable, ongoing ACSES project APD must also be included in the project’s final “Closeout” APD.
- There are some exceptions.

- Closing Out My APD ***Moving Beyond Certification***

## When Can I Close My APD ?

There are three factors:
  Whether the State’s ACSES is fully  and unconditionally certified.
  Whether there are any outstanding,  software development or significant  procurement actions yet to be done.
  Whether the ACSES cost-benefit  analysis has achieved “break-even”.

**There are three factors**:
-   Whether the State’s ACSES is fully  and unconditionally certified.
-   Whether there are any outstanding,  software development or significant  procurement actions yet to be done.
-   Whether the ACSES cost-benefit  analysis has achieved “break-even”.

- Closing Out My APD ***Moving Beyond Certification***

## When Can I Close My APD ?
  Factor One:  ACSES Certification
  The ACSES must be fully and   unconditionally certified.
  Conditional certification does not meet   the necessary standard.
  Management findings (versus   certification findings) will in most   instances not prohibit APD Closeout.

-   **Factor One:  ACSES Certification**
-   The ACSES must be fully and   unconditionally certified.
-   Conditional certification does not meet   the necessary standard.
-   Management findings (versus   certification findings) will in most   instances ***not*** prohibit APD Closeout.

- Closing Out My APD ***Moving Beyond Certification***

## When Can I Close My APD ?
  Factor Two:  Outstanding Work
  Outstanding software development   projects, modules, or other activities.
  Outstanding procurement actions.
  Either of the above will prevent approval  of a State’s request to Closeout it’s APD.

-   **Factor Two:  Outstanding Work**
-   Outstanding software development   projects, modules, or other activities.
-   Outstanding procurement actions.
-   Either of the above will prevent approval  of a State’s request to Closeout it’s APD.

- Closing Out My APD ***Moving Beyond Certification***

## When Can I Close My APD ?
  Factor Three:  CBA Breakeven
  The State’s cost-benefit analysis   must show a breakeven or a   positive benefits to cost ratio.
  OCSE must and will verify the   CBA’s accuracy prior to approval    of the Closeout APD.

-   **Factor Three:  CBA Breakeven**
-   The State’s cost-benefit analysis   must show a breakeven or a   positive benefits to cost ratio.
-   OCSE must and will verify the   CBA’s accuracy prior to approval    of the Closeout APD.

- Closing Out My APD ***Moving Beyond Certification***

## What’s A Significant Software Development Effort ?

  A significant application development   takes on three basic characteristics:
  Level of effort
  Cost
  Risk

-   **A significant application development ****  takes on three basic characteristics:**
-   Level of effort
-   Cost
-   Risk

- Closing Out My APD ***Moving Beyond Certification***

## What’s A Significant Software Development Effort ?

  Types of significant application   development efforts include:
  replacement of an ACSES distribution  or enforcement module.
  development of a graphical user   interface (GUI) front-end to the ACSES.
  replacement of the database from a  heirarchical to a relational model. 

-   **Types of significant application****   development efforts include:**
-   replacement of an ACSES distribution  or enforcement module.
-   development of a graphical user   interface (GUI) front-end to the ACSES.
-   replacement of the database from a  heirarchical to a relational model.

- Closing Out My APD ***Moving Beyond Certification***

## What’s A Significant Software Development Effort ?

  Types of significant application  development efforts include:
  outstanding Federal PRWORA or FSA88  certification findings not yet foud to be  unconditionally certifiable.
  data warehousing.
  migration from a mainframe-based   platform to a client-server platform.

-   **Types of significant application****  development efforts include:**
-   outstanding Federal PRWORA or FSA88  certification findings not yet foud to be  unconditionally certifiable.
-   data warehousing.
-   migration from a mainframe-based   platform to a client-server platform.

- Closing Out My APD ***Moving Beyond Certification***

## What’s Not A Significant Software Development Effort ?

  Types of development efforts NOT  considered significant:
  routine maintenance activities, e.g.,  creating new reports, limited data  element changes,  minor changes to  data entry screens. 
  upgrades to the ACSES hardware  and/or COTS.

-   **Types of development efforts *****NOT****** ***** considered significant:**
-   routine maintenance activities, e.g.,  creating new reports, limited data  element changes,  minor changes to  data entry screens.
-   upgrades to the ACSES hardware  and/or COTS.

- Closing Out My APD ***Moving Beyond Certification***

## What’s A Significant Procurement Effort ?

  Types of procurement efforts that  are considered significant:
  prime contractor to perform ongoing  ACSES maintenance over multiple years.
  major mainframe or other hardware and  software or network upgrade. 
 An outstanding, unresolved, “reconsideration  request” filed with ACF/OCSE in accordance  with OSSP-00-01.

-   **Types of procurement efforts that****  are considered significant:**
-   prime contractor to perform ongoing  ACSES maintenance over multiple years.
-   major mainframe or other hardware and  software or network upgrade.
-  An outstanding, unresolved, “reconsideration  request” filed with ACF/OCSE in accordance  with OSSP-00-01.

- Closing Out My APD ***Moving Beyond Certification***

## Closeout APD Format 
  What’s different from an AAPDU ?
  Content is essentially the same as that for     any AAPDU.  
  OCSE must be able to determine that all    Closeout criteria have been met.  
  For APD sections that didn’t change from      an APD in last three years, a reference to     that APD, by section and page number(s)     will suffice.

-   **What’s different from an AAPDU ?**
-   Content is essentially the same as that for     any AAPDU.
-   OCSE must be able to determine that all    Closeout criteria have been met.
-   For APD sections that didn’t change from      an APD in last three years, a reference to     that APD, by section and page number(s)     will suffice.

- Closing Out My APD ***Moving Beyond Certification***

## Closeout APD Format 
  Every AAPDU section is needed
Executive Summary:  Optional.
Project Management Plan:  Required (Tasks, Schedule, Resources).
Budget:  Required (include all costs from planning to certification).
Cost/Benefit Analysis:  Required (Revenue Stream Model).
All Other Sections:  Required if changed if unchanged, make reference to appropriate APD (Security, Interfaces, Project Organization and Charts) .

-   **Every AAPDU section is needed**
- Executive Summary:  Optional.
- Project Management Plan:  Required *(Tasks, Schedule, Resources).*
- Budget:  Required *(include all costs from planning to certification).*
- Cost/Benefit Analysis:  Required *(Revenue Stream Model).*
- All Other Sections:  Required if changed *if unchanged, make reference to appropriate APD (Security, Interfaces, Project Organization and Charts) .*

- Closing Out My APD ***Moving Beyond Certification***

## Closeout APD Format 
  A Few Clarifications
  Project Management Plan needs to meet     specifications in OCSE’s APD Guidance.  
  Budget MUST  specify all past, present      and expended ACSES project cost from     planning through O&M.  The budget is the     last summarization of the project’s cost     information and basically serves as the final     cost reconciliation. 

-   **A Few Clarifications**
-   Project Management Plan needs to meet     specifications in OCSE’s APD Guidance.
-   Budget *MUST*  specify all past, present      and expended ACSES project cost from     planning through O&M.  The budget is the     last summarization of the project’s cost     information and basically serves as the final     cost reconciliation.

- Closing Out My APD ***Moving Beyond Certification***

## Closeout APD Format 
  A Few Clarifications  (cont’d)
  The cost-benefit analysis must be     complete, thorough, and show a breakeven      or positive benefit to cost ratio.  
  Thoroughness includes spreadsheets or     other methodologies for every year of the     project’s and system’s lifecycle, and     includes all costs from planning through     O&M. 

-   **A Few Clarifications  *****(cont’d)***
-   The cost-benefit analysis must be     complete, thorough, and show a breakeven      or positive benefit to cost ratio.
-   Thoroughness includes spreadsheets or     other methodologies for every year of the     project’s and system’s lifecycle, and     includes all costs from planning through     O&M.

- Closing Out My APD ***Moving Beyond Certification***

## Why Keep My APD Open ?
   Systems never stay static.  New enhancements,   new technologies, new designs for the system   are always being conceived.
   Technology updates are always being pursued,     if for no other reason than to retain an affordably    maintainable system (staff, COTS, hardware).
    However, new user interfaces, new databases,    new programming languages are rarely cheap.

-    Systems never stay static.  New enhancements,   new technologies, new designs for the system   are always being conceived.
-    Technology updates are always being pursued,     if for no other reason than to retain an affordably    maintainable system (staff, COTS, hardware).
-     However, new user interfaces, new databases,    new programming languages are rarely cheap.

- Closing Out My APD ***Moving Beyond Certification***

## Why Keep My APD Open ?
   The threshold for having to submit a new IAPD    is $5 Million dollars.  A low threshold by today’s    system acquisition standards.
   By keeping the APD open, your State can use   the still accruing  benefits attributable to the   current ACSES to “pay for” the new   enhancements to the system.      
   Keeping the APD open also eases the paperwork   required to create a new CBA from scratch.

-    The threshold for having to submit a new IAPD    is $5 Million dollars.  A low threshold by today’s    system acquisition standards.
-    By keeping the APD open, your State can use   the still accruing  benefits attributable to the   current ACSES to ***“pay for”*** the new   enhancements to the system.
-    Keeping the APD open also eases the paperwork   required to create a new CBA from scratch.

- Closing Out My APD ***Moving Beyond Certification***

## Can We Keep Our APD Open ?
   Yes, in almost all instances a State can choose    to keep their annually updated APD for the    ACSES project open.  The exception is:
   A “new” or “replacement” system project   will require a full planning phase, including a  new feasibility study with alternatives   analyses and a cost-benefits analysis for   each alternative. 

-    Yes, in almost all instances a State can choose    to keep their annually updated APD for the    ACSES project open.  The exception is:
-    A ***“new”*** or ***“replacement”*** system project   will require a full planning phase, including a  new feasibility study with alternatives   analyses and a cost-benefits analysis for   each alternative.

- Closing Out My APD ***Moving Beyond Certification***

## Oops !  We Closed Our APD !
  Yes, the APD that a State closes   can be reopened within two years   (24 months) of it’s closure.   (Just in case the new administration comes in and decides to change direction)

**  ****Yes, the APD that a State closes****   can be reopened within two years****   (24 months) of it’s closure.****   *****(Just in case the new administration comes in and decides to change direction)***

- Closing Out My APD ***Moving Beyond Certification***

## “If Our State Only Has M&O Left, But It Exceeds $5 Million Per Year, Must We Still Do APD’s ?”
  Once the state achieves   breakeven or positive benefits    to cost ratio, the State can close the APD (per 45 CFR 95.605).

**  ****Once the state achieves****   breakeven or positive benefits ****   to cost ratio, the State can close the APD *****(per 45 CFR 95.605).***

- Closing Out My APD ***Moving Beyond Certification***

## A Policy Change – “Once Enhanced, Always Enhanced” Is Going Away
The “once an enhanced project, always an enhanced project” concept now has a terminus, even if the APD is kept open.  
Once a state is certified for meeting PRWORA automation requirements, acquisition and APD threshold rates for regular rate FFP projects will apply.  ($5 Million versus $100,000)

- The “once an enhanced project, always an enhanced project” concept now has a terminus, even if the APD is kept open.
- Once a state is certified for meeting PRWORA automation requirements, acquisition and APD threshold rates for regular rate FFP projects will apply.  ($5 Million versus $100,000)

- Closing Out My APD ***Moving Beyond Certification***

## Closing Out My APD Moving Beyond Certification

**Now Some Questions**

- Steve Schiffelbein , Kansas
- Marie Theisen, Iowa
- Curtis Rose, Colorado

## Closing Out My APD Moving Beyond Certification

- 1.  What factors helped in your decision to Closeout your APDU process?			IA and KS
- 2.  What factors helped in your decision to keep the APDU process open?			     CO

## 3.  Were you reminded of the prior approval requirements (45 CFR Part 95.611) for future acquisitions of ADP equipment and services when you considered Closeout?Did the revised “Enhanced funding policy” have any impact on your decision?			IA and KS

- Closing Out My APD ***Moving Beyond Certification***

## 4. Although management findings are not a factor to prohibit ADPU Closeout, did you complete the management findings?  			IA and KS5.  Within what timeframe did you feel it was necessary to complete the management finding?		         IA and KS

- Closing Out My APD ***Moving Beyond Certification***

## Closing Out My APD Moving Beyond Certification

- 6.  Did you follow the guidelines for update/ revision pages?  Did you reference, from an APD in the last three years, section and page numbers that did not change?			     KS
- 7.  As a follow-on question, have you found the information in the AT useful as you work to annually update your APD?				CO

## Closing Out My APD Moving Beyond Certification

- 8.  Was it difficult to use the functional model as opposed to the revenue stream model?  Did you breakeven?			   IA and KS

## Closing Out My APD Moving Beyond Certification

- 9.  Did you find your breakeven using the revenue stream model?  Did you find the revenue stream model easier to use (even if you didn’t Closeout your APD)?   Is it still?			IA, KS and CO

## Closing Out My APD Moving Beyond Certification

- 10.  Did you find it a hard sell to convince senior management that the right course of action was to keep the APD open? 			        CO

## Closing Out My APD Moving Beyond Certification

- 11.  Any rumblings today in upper management or out in the trenches about building a new system?  If so, any second thoughts about having closed your APD out?			  IA, CO, and KS

## Closing Out My APD Moving Beyond Certification

**Audience **
**Questions**

## Closing Out My APD Moving Beyond Certification

**Thanks to Our Guests**

- Steve Schiffelbein , Kansas
- Marie Theisen, Iowa
- Curtis Rose, Colorado
- Joe Bodmer, OCSE