1. June 23, 2011

2.  Strategies to Address areas of national focus: Benefit Year Earnings (BYE) – Root Causes Identified  Claimant / Employer/Employee Integrity  Lack of methods to detect Return To Work  Insufficient Staff for Benefit Payment Control  Insufficient Instructions for Continued Claims Planned action(s) to address issue(s)  Implement a failure to report issue to stop payment based on no response to Claimant notice  Update/Re-design Agency Forms  Consistency Training  Weekly NDNH cross-match with Claimant Notice; Set a flag based on an NDNH hit to initiate additional questions in the next weekly certification  Use AWARE tool to identify and pursue areas of focus  Obtain staff for Benefit Payment Control  Create “How to Report Earnings” – FAQ sheet. 2

3. Benefit Year Earnings (BYE) Planned action(s) to address issue(s) - (continued)  Require In-person/Agency contact in order to file next weekly certification after reporting earnings  Educate employers regarding NDNH responsibilities; Implement mandatory Wage Audit Notice response by employer (Or else consequence TBD)  Review/Modify/Add weekly certification questions and reiterate fraud penalties; Link FAQ’s to earnings certification question  Cross Match with other state entities – Vital Statistics, Dept. of Corrections, Dept. of Motor Vehicles, ESC Labor Market Information, etc.  Update BRI (Benefits Rights Information) with “How To” instructions for reporting earnings 3

4.  Benefit Year Earnings (BYE) Principal Milestones June 30, 2011  Weekly NDNH Cross Match with Claimant Notice mailing September 30, 2011  FAQ’s for claimants - addressing fraud and penalties, reporting requirements  Review/Modify weekly certification questions and reiterate fraud penalties; Linking FAQ’s to earnings question  Develop the criteria to use AWARE tool  Consistency Training  Update existing employer booklet to include employer NDNH requirements  Update BRI (Benefits Rights Information) with “How To” instructions for reporting earnings 4

5.  Benefit Year Earnings (BYE) Principal milestones (continued) December 31, 2011  Additional Staff for Benefit Payment Control  Predictive Dialer March 31, 2012  Add weekly certification questions September 30, 2012  Attach internet fact finding to the weekly certification questions December 31, 2012  Set a flag based on an NDNH hit to initiate additional questions in the next weekly certification 5 Note: Confirmation of progress will be measured through BAM and internal reporting

6. Separations Root cause(s) identified  Adjudication Decision errors  Claimant/Employer/Staff Integrity  Timeliness of Determinations  Employer Responses - Untimely/Incomplete  Erroneous Decision Postings Planned action(s) to address issue(s)  Consistency Training  Implement imaging with workflow to improve information sharing and accessibility; Update/Re- design Agency Forms  Automate determination postings  Review/Modify/Add weekly certification questions and reiterate fraud penalties.  Update BRI (Benefits Rights Information)  Educate employers regarding the management of their tax rate  Include fraud warning with Wage Transcript and Monetary Determination  Expand the internet fact finding  Implement New Fire Application  Attach Webinars to web portals  SIDES  Implement validation to review decision postings prior to release 6

7.  Separations Principal milestones June 30, 2011  Update 500AB Form, Request for Separation Information September 30, 2011  Consistency Training  Employer education  BRI (Benefits Rights Information)  Fraud warning with Wage Transcript and Monetary Determination  Begin SIDES Implementation December 31, 2011  Predictive Dialer March 31, 2012  Implement validation to review decision postings prior to release September 30, 2012  Imaging Project 7 Note: Confirmation of progress will be measured through BAM and internal reporting

8.  Strategies to Address areas of national focus: ES Registration – Not an Issue in NC  In North Carolina, when a claimant applies for benefits, they are automatically considered registered. There are no improper payments as a result of this process. 8

9. State Specific Issues  Pending legislation regarding merger - New laws/revisions to be enacted due to proposed merger with Dept. of Commerce  Lack of Effective Eligibility Review Processes  Aging UI Benefits/Guide System  Identity Theft/Sharing  BARTS Recover Software Planned Action to Address Issue(s):  Consistency Training  Utilize Imaging system regarding workflow; Update/Re-design Agency Forms  Review methods to increase contact for Eligibility Reviews  UI Feasibility Study  Implement Policy/Procedure to require identification when claimants contact the agency in person  Work with Debit Card vendor regarding change requests  Work with ON POINT vendor regarding technology/programming limitations 9

10.  State Specific Issues Principal Milestones: September 30, 2011  UI Feasibility Study  Consistency Training September 30, 2012  Imaging Project 10 Note: Confirmation of progress will be measured through BAM and internal reporting

11.  Strategies to Support the Entire State UI System Owning UI Integrity: Encourage every staff member to understand how their jobs connect to UI integrity  Consistency Training; Cross Training; Sense of ownership Develop processes that encourage staff to recommend solutions to address UI improper payments.  Consistency Training; Cross Training; Sense of ownership  Suggestion Box System Maintain management oversight in every functional area of the UI program that includes integrity reviews for accuracy and potential problems related to improper payments, etc.  Review the existing adjudication process to determine where efficiencies may be achieved  Continual review of improper payment issues by UI Integrity Task Force 11

12.  Communications Strategies: To claimants and employers;  Provide Integrity training to claimants and employers through education  Send out an annual rate notice that includes a pamphlet/tri-fold that addresses employer’s tax rates, including all areas that may affect the rate, etc. To state UI staff;  Provide Consistency and Cross Training of staff  Suggestion Box System linked to Intranet  Quarterly Agency News Bulletins To state leaders (Governor, state legislature, etc.)  Use of Legislative Liaison With the public (press, public websites, etc.).  Use media and messaging campaigns including webinars and social media 12

13.  State summary statement on strategic plan to reduce improper payment.  Questions?  State Contact for follow-up:  chinita.arceneaux@ncesc.gov chinita.arceneaux@ncesc.gov  Phone: 919-707-1451 13