1. State Presentation: OCTOBER 24,2011

2. Overpayments by Cause* 2010 Review Description$ AmountPercentage of Total Unreported Earnings $ 27,104,95060.13% Paid While Ineligible $ 8,307,47818.43% Paid While Disqualified $ 6,773,63915.03% Other Causes $ 2,887,9476.41% * Data collected from actual BPC monthly reports. This is not expanded or projected data collected from BAM audits.

3. Source of Overpayments* Description$ AmountPercentage of Total Quarterly Wage Cross Match Audit $ 15,557,28332.98% Non Monetary Determinations $ 14,663,25531.09% Federal New Hire Cross Match $ 6,892,94214.61% Overturned Determinations $ 4,227,0138.96% Missouri New Hire Cross Match $ 1,575,6123.34% Other Detection Methods $ 2,126,7464.51% 2010 Review * Data collected from actual BPC monthly reports. This is not expanded or projected data collected from BAM audits.

4. 1)Improve the SDNH and NDNH process Change the SDNH to run more than once a week Suspend payments on all claims that hit the SDNH and NDNH cross-match Add a request for separation information to audit form to employers on all new hire hits. Key Strategies

5. 2) Develop new cross matches to improve integrity of UI Programs Cross-match with state prison system Cross-match with state employee records to detect those new hires who owe on overpayments Cross-match with state employee records to detect those who continue to file for benefits Key Strategies

6. 3) Review policies and procedures when handling employer protests Revise policy on employer protests with separations that occur during weeks claimed on prior benefit year claims Change IVR and Internet claims script to ask separation questions on each weekly certification Suspend payment on weeks claimed beyond the recall date if the claimant does not report earnings or separation Revise policy to include a protest period on renewals due to lack of work Key Strategies

7. 4) Improve the quarterly wage cross-match process Improve the schedule for the quarterly cross-match Develop an automatic electronic request to employers on claims as the quarterly wages are submitted to employers through USTAR Key Strategies

8. 5) Use LADT information to improve integrity of UI Programs Develop programming to utilize information from the Liable Agent Data Transfer (LADT) records. Key Strategies

9. 6) Develop procedures to address identity theft Capture IP addresses and Phone numbers Develop a procedure for DES to handle identity theft cases Create a process to obtain a signed document which would give DES a record of claimant signature, which is important in identity theft and fraud/prosecution cases Key Strategies

10. 7) Additional training and education for Claim Center Staff Provide training for RCC staff to recognize unreported benefit year earnings when handling proof of earnings for requalification Update instructions for RCC staff to identify A/A issues when investigating separations and recognize that investigating one issue can lead to other issues. Set a control issue when adding wage/vacation information to a pending week Key Strategies

11. 8) Implement Treasury Offset Program (TOP) 9) Implement SIDES 10) Identify and investigate self employment issues Key Strategies

12. 11) Education on responsibilities and impact on integrity of program Include information to employers in quarterly newsletter / new employer packets on importance of responding to wage verification requests DES Director will provide editorials for business journals emphasizing the importance of the role the employers have with integrity of UI programs Add informational video to employer page DES web site. Newsletters to UI and key workforce staff from DES director on a regular basis on maintaining the integrity of the UI program. Increase public awareness through press releases on successful prosecution cases for fraudulent overpayments Key Strategies

13. Summary and Q&A “Integrity: Own It!” Questions? State Contact for follow-up: Carol Luecke: Carol.Luecke@labor.mo.gov Phone: 573-751-4012 13