UI Integrity / Improper Payments Joint Federal/State Task Force

1. UI Integrity / Improper PaymentsJoint Federal/State Task Force State Presentation: ARIZONA October 13, 2011

2. Mission Statement We will identify, analyze, and act on the root causes of improper payments by building upon and improving practices already in place. We will implement new processes and procedural improvements that will foster a culture of common ownership. We will create a measurable action plan and post successful strategies in order to help replicate best practices throughout the nation. Our focus will be on preventing, detecting, and recovering improper payments, which will reduce the overall improper payment rate and increase integrity throughout the UI system.

3. Areas of National Focus: • Benefit Year Earnings (BYE): Root Causes Identified: • Agency Causes • Failure to send NDNH letter to claimants • Allowing too much response time for employers to respond to NDNH letter • Failure to follow up for non-response • Claimant Causes • Failure to report wages or incorrect reporting • Employer Causes • Failure to respond to the NDNH letter • Failure to respond to audits • Failure to report new hires

4. Areas of National Focus: • Benefit Year Earnings (BYE): Planned action(s) to address: • Send notice to claimant upon receiving NDNH match • Reduce response time for employer to respond to NDNH letter • Contact employer if no response • Mail instructional memo to claimant with wage statement Principal milestones: • Claimant notice finalized Sept. 2011 and implemented by Dec. 2011 • Sent change inquiry for NDNH employer letter to vendor on Oct. 4, 2011 • Develop procedure for telephone follow up to employers Nov. 2011 • Complete policy and submit to Business and Technology Services by Nov. 2011 4

5. Areas of National Focus: • Separations (SEPs): Root Causes Identified: • Agency Causes • Interpreting information incorrectly • Failing to ask the right follow up questions • Claimant Causes • Providing false or incorrect separation information • Providing wrong last employer • Failing to disclose a separation • Failing to respond to requests for additional information • Employer Causes • Failing to return notice or returning untimely • Providing incorrect or incomplete information • Failing to respond to requests for additional information • Failing to report changes to their business 5

6. Areas of National Focus: • Separations: • Planned actions to address: • Implement State Information Data Exchange (SIDES) • Clarify instructions/information on Notice to Employer • Review Initial Claim application and clarify differences between a layoff and discharge • Additional training and revised script for new claim and adjudications staff • Principal milestones: • SIDES pilot Implementation Nov. 2011 • Revise Notice to Employer; Feedback from focus group Jan. 2012; Implementation April 2012 • Review and revise current initial claims application; implement changes by Jan. 2012 • Develop supplemental training modules by Dec. 2011 • Revise Customer Service Representative (CSR) script by Oct. 2011 6

7. Areas of National Focus: • Work Search Issues: Root Causes Identified: • Agency Causes • Not providing warning for inadequate work search • Not providing agency expectations of claimant • Claimant Causes • Failing to properly document work search • Does not understand agency expectations for work search requirements 7

8. Areas of National Focus: • Work Search Issues : • Planned actions to address: • Adopt Substantive Policy Statement (SPS) to include at least one warning for inadequate work search • Revise CSR script and internet to include in depth information on work search requirements • Change weekly certification and filing method • Mailing instructional memo to claimant with wage statement • Principal milestones: • Submitted SPS to Arizona Secretary of State Oct. 5, 2011 • Revision for CSR script and internet by Oct. 2011 • Weekly certification changes; testing to begin Dec. 2011 • Complete policy and submit to Business and Technology Services by Nov. 2011 8

9. State-Specific Issues • Communication • Root cause(s) identified: • Claimant does not understand repercussions of giving false or incorrect information • Employer does not understand requirements • Planned action(s) to address issue • Posting UI fraud convictions on State UI website • Better informing employers of the requirements to report new hires • Principle milestones • Target date for posting criminal convictions is Oct. 2011 • Include additional employer information in outreach beginning Oct. 2011 • Offer state wide employer outreach sessions at least quarterly • Add improper payment information to quarterly employer news letter

10. Everybody Owns Integrity • Strategies to Support Staff Owning UI Integrity: Stress the importance of owning integrity from the date of hire through the career span of every employee. Provide each employee with a copy of the UI Integrity Mission Statement and Integrity Task Force Charter. Educate by providing a presentation that includes this power point and emphasize to all staff the importance of owning integrity. Develop a Everyone Owns Integrity (EOI) training module to incorporate into all areas of UI training. Intensify the existing monitoring and review processes to identify and assign accountability to staff members for improper payments. Provide a mechanism for staff to provide suggestions for integrity improvement.

11. Communications • Communications Strategies: • To claimants • Send letter when there is an NDNH match • Mail instructional memo with wage statement • Update forms, CSR scripts, and information on website • To employers • Implement SIDES • Revise Notice to Employer • Offer statewide employer outreach sessions at least quarterly and emphasize importance of new hire reporting

12. Communications • Communications Strategies, Continued: • To Arizona UI staff • Intensive job specific training to include EOI module • Informational broadcasts • Create email account to receive input for process improvement • To the public • Fact sheets (web based) regarding current unemployment issues • Inform agency Public Information Officer (PIO) with Integrity Task Force mission and goals • Provide briefing to business and community organizations as appropriate • To Arizona leaders • Inform DES Legislative Services Office about UI Integrity Institute

13. Summary and Q&A “Integrity: Own It!” • Questions? • State Contact for follow-up: Glenn Campbell: glenncampbell@azdes.gov Phone: (602) 542-7957