UI Benefits Operations. State Self-Assessments UI Benefits Operations State Self-Assessments UI Administrators’/Directors’ Orientation August 8, 2017

UI Benefits Operations Self-Assessment Orientation Welcome! Jim Garner, Deputy Administrator Office of Unemployment Insurance Employment and Training Administration (ETA) U.S. Department of Labor

UI Benefits Operations Self-Assessment Orientation Introductions Discussion Leaders - Jim Garner, Deputy Administrator Office of Unemployment Insurance (OUI) Betty Castillo, Division Chief OUI Division of UI Operations Karen Pasquale, UI Director ETA Region 2 (Philadelphia)

Agenda Background: Reengineering Project New Program Accountability Framework Why a New Approach? Development and Structure of Self-Assessment Tool State Self-Assessment Reviews Responsibilities of UI Administrators/UI Directors State Reviewers – Selection, Duties, & Training Implementation Timeline and Next Steps

Background A long-held hallmark of the UI program is that performance and accountability is a system-wide responsibility – we all own it In the aftermath of the last recession, we have seen improper payments continue to increase and program performance remain stagnant demonstrating a need for some type of deeper dive States face challenges involving staff turnover, technology issues, policy changes, and funding constraints – impacting program operations While our system has very robust UI accountability and performance measures gauging program integrity, timeliness and quality, there is a real need for a systematic focus on UI benefits operations.

New Program Accountability Framework - What’s Changed? The State Quality Service Plan (SQSP) moved to a biennial cycle National peer reviews implemented for Benefit Accuracy Measurement (BAM) and Benefits Timeliness and Quality (BTQ) for Non-monetary Determinations and Appeals New ETA process identifies High Priority states for technical assistance New method to leverage skills of federal staff and state subject matter experts (SMEs) to support technical assistance and performance improvement New process for state self-assessments focused on UI operations

Why the New Approach? Engage states in the assessment and review process Integrate training and learning opportunities into the process Support states’ efforts for continuous improvement Identify areas where technical assistance may be needed Strengthen operational performance quality and the UI system overall

ETA Guidance ETA issued guidance related to the reengineering effort: TEN No. 8-14 (September 2, 2014) TEN No. 3-15 (July 27, 2015) UIPL No. 17-16 (July 13, 2016) UIPL No. 18-17 (July 28, 2017)

Development of Self-Assessment Tool Project Steering Committee identified areas for self-assessments Team of ETA Regional and National Office staff and state SMEs Contractor support using staff with significant UI experience Additional review and input by ETA regional offices Nine states conducted a pilot test in the fall of 2015; feedback and comments guided revisions and refinements to the tool 60-day public comment period ended Aug 2016; 30-day public comment period ended March 2017 (Tool revised per comments)

Self-Assessment Tool State Self-Assessment is designed to assist states in improving program operations and integrity and identifying strategies for innovation Designed to facilitate collection of information/data on an ongoing basis allowing states to monitor program operations Supports state and federal roles to ensure effective UI program performance and program integrity as a comprehensive review Self-assessment results will be used by ETA to develop technical assistance for High Priority states

Self-Assessment Tool How it fits into the new framework Allows for comprehensive and systematic reviews of UI Benefits operations to support program improvement efforts States can self-identify needed corrective actions and formulate strategies to mitigate vulnerabilities and problems and identify successful practices Facilitate collection of information/data on an ongoing basis allowing states to monitor program operations ETA will use the states’ self-assessment results to identify technical assistance needs States can identify successful practices to share with other states

Key Functional Areas of the Self-Assessments The self-assessments contain in-depth questions on the following fifteen functional and program areas within UI Benefits operations: Adjudications/Benefit Timeliness and Quality Reviews Benefit Payment Control Continued Claims and Eligibility Reviews Data Validation Disaster Unemployment Assistance Intake Claims -- Unemployment Compensation for Ex-Servicemembers Intake Claims -- Unemployment Compensation for Federal Employees

Key Functional Areas of the Self-Assessments Cont’d. Intake Initial Claims -- Combined Wage Claims Intake -- Initial Claims Internal Security Lower Authority Appeals and Higher Authority Appeals Overarching Operational Matters Short-Time Compensation Trade Readjustment Allowances Worker Profiling and Reemployment Services and Reemployment Services and Eligibility Assessment Each area has a set of accompanying instructions

Key Operational Areas of the Self-Assessment Within each functional or program area, there are questions that cover nine operational elements (where applicable): Procedures, Policies and Confidentiality Training Workload Analysis and Management Controls Performance Management Information Technology Claimant and Employer Access and Communication Operational Efficiency and Resource Allocation Staffing Fiscal Management

The Operational Functions Chart Functional Areas Operational Elements Procedures, Policies and Confidentiality Training Workload Analysis/Management Controls Performance Management Information Technology Claimant & Employer Access and Communication Operational Efficiency / Resource Allocation Staffing and Merit Staffing Fiscal Management Overarching Operational Matters (Program Wide)    N/A Intake - Regular UI, Intrastate and Interstate CWC UCFE UCX Monetary Determinations Adjudication/BTQ Continued Claims/Eligibility Review Appeals BPC Internal Security N/A  DUA Episodic   Episodic Episodic Reemployment Data Validation STC

Use of State Results/Responses The responses to the UI Benefits Operations Self-Assessment Tool have two distinct and complementary purposes: Assist state UI agencies in identifying areas needing improvement and making needed improvements to their UI benefits operations Assist ETA in monitoring state UI benefits program operations and in providing technical assistance to states

Use of State Results/Responses State Use Results will be shared with UI Administrators/UI Directors and other program managers Assist states to identify best practices to share with other states States should use the review results to monitor business practices essential to UI benefits operations States may develop and implement appropriate strategic plans for program improvements based on the review findings, supplemented by any USDOL Regional Office recommendations

Use of State Results/Responses A State can use the results of the self-assessments to address areas of needed operational improvements. For example: Policies/procedures identified as outdated should be brought up-to-date If training needs are identified, appropriate training curriculums should be developed and delivered to staff Gaps in guidance and/or internal/external communications should be addressed

Use of State Results/Responses ETA Use Identify and develop technical assistance to address state needs Support periodic reviews conducted by ETA staff Gauge state compliance with Federal law and regulations Aid ETA regional office staff in working with states to identify opportunities to improve operations Identify areas where performance improvements are needed Self-assessment results/data will be an element used by ETA to identify “high priority” states

The “High Priority” States Determination Model 1 Results from the state self-assessment tool 5 Regional/National Office Intel 2 Core Measures 4 Empirical ranking of states High Priority States 3 Improper Payment measure

State UI Management Role Identify state staff/contracted staff who will be responsible to perform the state self-assessment review Support the reviewer’s participation in training Ensure reviews are conducted in accordance with ETA guidance and timelines Promote/ensure appropriate cooperation of all agency staff to allow for completion of the self-assessment

State UI Management Role Cont’d. Use the information from the assessment to: Pursue performance and process improvements Address any training needs Ensure policies and/or procedures are updated, as needed Share any identified best practices Provide the completed self-assessment review results to ETA National and Regional Offices

Staffing for the Self-Assessment One full-time equivalent staff position per state is required (i.e., the “self-assessment reviewer”) States may designate one full-time person or divide duties among two or more individuals to conduct the self-assessment reviews on a part-time basis The position will be funded out of each state’s UI administrative grant States may hire state staff or use contracted staff with UI experience. Contracted staff must demonstrate sufficient knowledge of and experience with the UI program, (e.g., states may consider hiring a recently retired UI agency employee)

State Reviewer Qualifications The state reviewer should possess the following qualities: Extensive UI experience and comprehensive knowledge of UI benefits operations, UI laws, regulations and written policies Skills related to planning/conducting reviews of systems and procedures, time-management, interviewing techniques, understanding and explaining complex matters Excellent interpersonal skills that promote trust Effective communication skills and ability to present findings and recommendations to management and other appropriate staff Strong attention to detail

State Reviewer Authority Well-qualified and experienced individual(s) placed in a position of independence (in terms of the UI line of authority) is critical The self-assessment reviewer(s) must be: Responsible to officials at a sufficiently high level in the state UI agency to permit independent review and monitoring of UI program operations and program integrity and to help ensure agency staff is responsive to the reviewer’s requests Supervised by an official who is not responsible for or performing work in a unit responsible for functions or operations subject to a self-assessment evaluation conducted by the reviewer Authorized to perform reviews on a regular and ongoing basis for the functional and program areas in the self-assessment tool

State Reviewer Duties Develop work plans to conduct the benefits operations review Conduct pre-review meeting(s) with management and other UI staff Compile and review materials such as policies, procedures, and handbooks Prepare for and conduct interviews of appropriate state staff related to UI benefits operations

State Reviewer Duties Cont’d. Personally observe UI benefit processes and operations Conduct the self-assessment and prepare a report(s) of findings, conclusions and recommendations for program improvement and/or corrective action - and to identify positive practices Establish a system for maintaining records and documentation Conduct post-review meeting(s) with management and other staff Submit the reports of the self-assessment results to USDOL/ETA

State Reviewer Training Virtual training modules are under development to: Outline expectations of the self-assessment process Provide instructions on the use of the self-assessment tool Webinars will be scheduled to: Respond to questions from reviewers after completing the training Respond to questions about implementation of the self-assessment process and transmittal of the results to USDOL

Implementation Timeline Select Self-Assessment Reviewer(s): August-September 2017 Complete Self-Assessment Reviewer Training: Early October 2017 Begin the Self-Assessment Process: 1st Quarter, FY 2018 Complete all Functional/Program Areas: March 31, 2019 Submit All Results to ETA: April 15, 2019

Next Steps States will identify state staff or contracted staff who will perform the state’s self-assessment review and must provide the name(s) and contact information of such individual(s) to the appropriate ETA Regional Office Ensure the designated reviewer(s) participates in ETA’s training for conducting the reviews using the self-assessment tool Develop internal communications to help ensure appropriate cooperation by all state agency staff for the successful completion of the self-assessment reviews Begin self-assessment reviews, use information for performance improvements, send results to USDOL (National/Regional Offices).

Questions?