1. State Presentation:VIRGINIA October 14, 2011

2.  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.  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.  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 4

5.  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.  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.  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.  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 8

9.  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. 9

10.  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. 10

11.  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 11

12. “Integrity: Own It!”  Questions?  State Contact for follow-up: David Rice: david.rice@vec.virginia.govdavid.rice@vec.virginia.gov Phone: (804) 225-8328 12