UI Integrity / Improper Payments Joint Federal/State Task Force

1. UI Integrity / Improper PaymentsJoint Federal/State Task Force State Presentation: VIRGINIA October 14, 2011

2. Areas of National Focus: • Separations (SEPs): Root Causes Identified: • Agency Causes • Communication Deficiencies / Internal and External • Liable Employer Identification • Adjudication Errors • Insufficient Education & Accountability Measures • Claimant Causes • Errors and Omissions in Reporting • Employer Causes • Separation Information Quality & Timeliness 2

3. Areas of National Focus: • Separations: • Planned action(s) to address: • Implement SIDES Separation module. • Improve communication to employers and claimants regarding rights, responsibilities and potential liabilities. • Agency training to address data recording errors and assign staff ownership and empowerment. • Amend Employee Work Profiles to assign cultural integrity ownership. • Continued training to improve adjudication quality. • Principal milestones: • Target implementation of SIDES by 09/30/12. • Improved communication to claimants and employers in process. Target completion date no later than 12/31/12. • Training sessions start 12/2011 and continue through 12/31/12. • EWP revisions by 11/30/11. • Adjudication training ongoing. Monitor and retrain as necessary. 3

4. Areas of National Focus: • Benefit Year Earnings (BYE): Root Causes Identified: • Agency Causes • New Hire Detection Delays • Communication Deficiencies / Internal and External • Education and Accountability • Claimant Causes • Errors and Omissions in Reporting • Employer Causes • New Hire Reporting Deficiencies

5. Areas of National Focus: • Benefit Year Earnings (BYE): Planned action(s) to address: • Agency - Daily SDNH cross matches and contact with related claimants. • Agency - Cultural shift / Integrity Ownership • Employers and Claimants - Improve communication regarding rights, responsibilities and potential liabilities. Principal milestones: • SDNH - Testing completed by 10/31/11. In production by 11/30/11. • Recommendation for Employee Work Profile revisions by 10/31/11. • Develop “Integrity Ownership” training by 04/01/12. • Communication improvements currently in process with targeted completion date no later than 12/31/12. 5

6. Areas of National Focus: • Work Search Issues: Root Causes Identified: • Agency Causes • Lack of sufficient work search verification and enforcement. • Insufficient messaging to claimants prior to and upon filing for weekly benefits. • Insufficient VRS (Voice Response System) collection parameters. • Claimant Causes • Failure to read and understand reporting requirements. • Failure to provide complete contact information • Fraud 6

7. Areas of National Focus: • Work Search Issues : • Planned action(s) to address: • Addition of contract staff for work search verification. • Update systems to include strategically placed “alert messages” that a claimant must acknowledge before moving forward with the weekly claim. • Utilize media outlets to communicate work search requirements and related consequences. • Principal milestones: • Target new staff trained and functioning by 12/31/11. • Improvements to the on-line claims processing system by 03/31/12. • Develop and submit recommendations for VRS improvements by 12/31/11. Implement by 03/31/12. • Develop and submit recommendations for media driven outreach efforts by 05/31/12. Implement by 09/30/12. 7

8. Everybody Owns Integrity • Strategies to Support Owning UI Integrity: • Ownership by every staff member • Management engagement to include integrity subject in every staff meeting. • Empower staff at lowest level practical to take independent action to prevent improper payments. • Promote use of Knowledge Center educational tools. • Employee Recognition Program

9. Communications • Communications Strategies: • To claimants • Improved written and recorded messaging during initial and continued weekly filings to include responsibilities and potential liabilities. • Develop FAQs to properly guide claimant throughout UI processes. i.e. job search and wage reporting requirements. • Utilize media outlets to inform and drive accountability. • To employers • Develop FAQs to inform employers of need for quality information in a timely manner. • Tie slow response and inadequate separation information to increased operating costs.

10. Communications • Communications Strategies, Continued: • To state UI staff • Management engagement to include integrity subject in every staff meeting. • Empower staff at lowest level practical to take independent action to prevent improper payments. • Commissioner’s office direct communication. • To the public • Utilize media outlets to promote Workforce Services and highlight integrity issues. • To state leaders • Include integrity efforts as part of the weekly communications to the Governor’s office.

11. Oh, and…You Gotta See This! • Integrity: A Way of Life! • Ongoing focus, control and correction of agency issues • Beginning with Qtr ending 12/31/11, Cross-functional task force to analyze BAM findings on Quarterly basis. • Identify top 3 “Opportunity Units” contributing to errors based on BAM findings. • Develop procedures to address and correct agency errors and their root causes. • Identified “Opportunity Units” are empowered to make necessary adjustments to assure future success. • Anticipated results: • Agency error resulting in improper payments to be reduced by 50% by 12/31/12. • Continued improvement of 10% with each Qtr vs. same period prior year. • Overall improved operational efficiency • Cost / Benefit explanation: • NO COST! • Less Errors = Less Improper Payments • Heightened sense of integrity ownership and accountability at all agency levels • Proactive training and awareness

12. Summary and Q&A “Integrity: Own It!” • Questions? • State Contact for follow-up: David Rice: david.rice@vec.virginia.gov Phone: (804) 225-8328