October 14, 2011

 Benefit Year Earnings Root Causes Identified:  Agency Causes’  System deficiencies  Insufficient BPC staff  Oversight of issues  Claimant Causes  Claimant integrity  Misinterpretation of requirements  Failure to report earnings or employment  Employer Causes  Employer integrity  Failure to report new hires  Failure to respond to the quarterly cross-match inquiry 2

 Benefit Year Earnings Planned action(s) to address:  Utilize technology tools to update and automate more UI activities and processes  Enhance current systems to provide education and clarification of program requirements Principal milestones:  Implement NDNH for BPC - December 31, 2011  Hire additional BPC staff - December 31, 2011  Online tips and leads reporting - December 31, 2011  Online employer reporting of job refusals - December 31, 2011  Adjust the quarterly cross match schedule for inclusion of more late filers - March 31,

 Separations Root Causes Identified:  Agency Causes  Staff Integrity  Lack of system automation  Adjudication errors  Quality of the determinations  Claimant Causes  Claimant Integrity  Inadequate facts regarding separations  Employer Causes  Employer Integrity  Untimely, incomplete employer responses 4

 Separations:  Planned action(s) to address:  Implement SIDES Small Employer Website (SEW)  Provide Benefits Timeliness and Quality (BTQ) training to supervisors bi-annually  System enhancements and upgrades  Consistency training  Planned Milestones  Implement the Small Employer’s Website (SEW) – March 31, 2012  Create an online separation reporting system - December 30,2012  Modify Employer’s Notice of Claim Filing – March 31,

 Work Search Issues: Root Causes Identified:  Agency Causes  Lack of automation  Lack of emphasis on the importance of work search verification  Ambiguous requirements for job search efforts per week  Claimant Causes  Claimant Integrity 6

 Work Search Issues  Planned action(s) to address:  Quantify the minimum number of acceptable, required work search contacts per week  Implement automatic work search audit system  Principal milestones:  Quantify work search requirements - December 31, 2012  Explore implementing an online automated eligibility review program – To be determined  Update BRI with more detailed requirements/non- compliance penalties – December 31,

8  Issue 1: Base Period Wages  Root cause(s) identified:  Lack of established employer liability  Employers failure to file quarterly tax and wage reports  Incorrect or incomplete reporting of wages  Planned action(s) to address issue:  Implement potential charges liability determination/appeal process  Enforce the significance of accurately reporting wages  Obtain employer addresses to send reminders, such filing taxes, new hires, etc.

9  Issue 1: Base Period Wages  Principle Milestones:  Provide employer quick reference guide online for properly reporting wages and paying taxes – December 31, 2011  Implement potential charges liability determination process when wages are added based on claimant response and no response from the employer during a wage investigation- September 30, 2012

10  Issue 2: System Integrity  Root cause(s) identified:  Lack of system integration of UI program types  Program deficiencies  Lack of resolution tracking for certain issue indicators  Planned action(s) to address issue  Expand system/program edits  Expand claimant access to provide and update some claims information

11  System Integrity  Principle Milestones  Add system requirements to apply disqualifications on all program types.  Change policy to allow only claimants to add or update direct deposit account information.  Implement online claimant access to update information.  Add system accountability to ensure issues are resolved before payments are released to include reversals resulting in rescinded overpayments.  Add a code to indicate SSN(s) reported as used for fraudulent activity to require further action for verification of identity.

 Strategies to Support Owning UI Integrity  Encourage staff members to develop an understanding of how their jobs are connected to UI Integrity.  Consistency training  Transactional training  Integrity ownership campaign  Develop processes to enable staff to believe their opinions and feedback make a difference.  Consistency Training  Redesign UI Intranet page to improve usability in accessing resources, memorandums, training materials, etc.  Maintain management oversight to ensure compliance with policies and to identify vulnerabilities earlier.  Regular reviews of improper payment issues by the UI Task Force  BPC/BAM staff will participate in Field Services supervisors/staff monthly meetings and conduct webinars for all CC staff on improper payment issues. 12

 Communications Strategies  To claimants:  Update BRI  Messaging campaigns  Training To employers:  Add integrity message to Employer Quarterly Tax and Wage report  Update Employer Handbook to emphasize the integrity message 13

 Communications Strategies  To state UI staff  Consistency training  Suggestion Box-include CC Best Practices to be reviewed by Policy and Procedures before posting.  Routine blasts to remind staff of the “Everyone Owns Integrity” message  To the public  Use media outlets and messaging campaigns  Add messaging to Customer Service line  To state leaders (Governor, state legislature, etc.)  Use of legislative liaison 14

 Killer App:  Description of Issue:  Incomplete information received from sources of tips and leads which delays the investigation process and the inability to handle the volume allowing claimants to receive improper payments.  Description of Solution:  Design an online application to accept information regarding employment to expedite the investigation of fraud tips and leads and prevent future payment of benefits. Request conditional information necessary to release a determination without further investigation. Fosters an “Everyone Owns Integrity” attitude.  Anticipated results:  Timeliness, accuracy, etc. improved by TBD  Improper payment reduction: TBD  Cost / Benefit explanation:  Reduce mailing costs  Improve the accuracy and timeliness of fact finding  Prevent future overpayments  Preserve the UI Trust Fund  Provide accurate data for employer tax rate calculations 15

“Integrity: Own It!”  Questions?  State Contact for follow-up: Racquel Robinson Phone: