1. October 14, 2011 State Presentation: DISTRICT OF COLUMBIA

2.  Benefit Year Earnings (BYE): Root Causes Identified:  Agency Causes  Obtaining sufficient documentation.  Lack of standard operating procedures.  Adequate training for staff.  Claimant Causes  Disclosing earnings and new employment.  Understanding how to report earnings.  Employer Causes  Responding to request for wage information.  Providing adequate information in a timely manner. 2

3. 3  Benefit Year Earnings (BYE):  Planned action(s) to address:  Implement the recommended Operating Procedures for the NDNH cross-match.  Improve Claimant knowledge of the Benefits Rights and Responsibilities.  Review and update DOES Website to include language regarding Fraud and Improper Payments.  Revise OUC Standard Operating Procedures.  Principal milestones:  Finalize Implementation of the recommended Operating Procedures for NDNH cross-matches by 12/31/2011.  By the 3 rd quarter of 2012 DOES will initiate a new Benefits Rights and Responsibilities acknowledgement initiative.  Changes will be made to various DOES web-based applications by 2 nd quarter 2012 to include language regarding fraud and improper payments.  Complete revision of SOPs by 1 st quarter 2012. 3

4.  Separations (SEPs): Root Causes Identified:  Agency Causes  Retrieval of separation information in a timely manner.  Improper adherence to DOES polices and procedures by claims examiners, affecting their ability to make an accurate determination.  Claimant Causes  Claimant’s failure to respond to agency request for information.  Inadequate information provided by claimant.  Employer Causes  Failure to respond to the request for separation information. 44

5.  Separations (SEPs):  Planned action(s) to address:  Develop a training program that addresses timeliness quantity, and quality of claims examiner decisions.  Provide continuous training to the OUC staff utilizing all available resources.  Improve claimants’ understanding of work search requirements as a condition of eligibility for benefits.  Improve employers’ awareness of their responsibility to respond to state requests for separation information and/or earnings/wage verifications.  Implement SIDES Separation Module. 55

6.  Separations (SEPs):  Principal milestones:  Improve response from employers.  Earlier detection of inconsistent separation issues, leading to improved investigations.  Reduction in labor intensive routine tasks associated with the current adjudication process.  Receipt of complete separation information. 6

7.  Work Search Issues:  Root Causes Identified:  Agency Causes  Agency does not require claimants to identify their job contact information during the weekly claim for benefits.  Claimant Causes  Inadequate job contact information.  Lack of detail in job contact information leading to non-compliance with UI eligibility. 77

8.  Work Search Issues :  Planned action(s) to address:  Change weekly claim application to include job contacts.  Reinforce job contact verification process.  Principal milestones:  Full Implementation by July 2012. 88

9. 9  Issue 1: Improve Claimants’ Knowledge of BRI  Root cause(s) identified:  Claimant state that they did not receive the BRI.  SWA currently does not require claimants to acknowledge receipt of BRI.  Planned action(s) to address issue  Improve methods by which the claimant receives the Benefits Rights and Responsibilities Handbook.  Change initial claim process to include an entrance interview will test the claimant’s knowledge of the BRI, and requiring that all claimants acknowledge receipt of the BRI.  Principle milestones  Testing January 2012.  Full Implementation by July 2012.

10.  Strategies to Support Owning UI Integrity:  Analyze jurisdiction specific root causes of improper payments.  To reduce and eliminate improper payments.  Select and organize Integrity Task Force members.  Collective problem-solving body to address and reduce improper payments.  Educate all parties that are impacted by improper payments.  Review policies and procedures that may contribute to the overpayment root causes. 10

11.  Strategies to Support Owning UI Integrity (Cont’d):  Develop processes ….etc.  That allow staff to identify areas of improper payments  Whereby employers can have more direct involvement in their unemployment accounts  To allow claimants to obtain information regarding proper wage reporting leading to improved UI compliance.  Maintain management oversight…etc.  To ensure that the Cross Functional Task Force remains on task and implements its goals  Through which Agency goals continue to be implemented. 11

12.  Communications Strategies:  To claimants  Reach out to claimants using new forms of media such as social networks, texting, email, as well as traditional media such as video & print ads  Update and improve website to allow for more relevant and efficient information dissemination  Educate claimants regarding UI compliance, including how and when to report wages. 12

13.  Communications Strategies (Cont’d):  To employers  Update and improve website to allow for more relevant and efficient information dissemination  Educate employers regarding UI compliance, including how to classify their employees as well as improving separation information sharing.  Encourage employers to utilize electronic methods of reporting and maintaining their UI accounts. 13

14.  Communications Strategies (Cont’d): :  To state UI staff  Raise awareness agency-wide that integrity is everyone’s responsibility. Provide means by which staff can assist in the reduction and elimination of improper payments  Provide training for Adjudication Staff to sharpen skills necessary to render decisions consistent with law and facts, thus leading to a reduced number of improper payments to claimants  Developing training materials and informational guides for staff use to assist with the adjudication process. 14

15.  Communications Strategies (Cont’d):  To the public  Through a multi-media campaign, expose the true impact of improper payments.  To District leaders (Mayor, City Council, etc.)  Communicate the true impact of improper payments and the how legislative support can facilitate reduction and elimination of improper payments. 15

16. Questionable Employment Tax Practices Detection and Education  Update the Employer Handbook  Define worker/employee misclassification;  Outline rules governing the employer/employee relationship  Update the UI Tax Website  Include an online version of the Employer Handbook  Link to IRS website and forms  Update the UI Tax System  Include parameters of new Effective Audit Measure  Work with IRS to implement data sharing programs 16

17.  Implementation  Complete necessary agreements with IRS  Create database of delinquent debtors (DOES  FMS)  Institute a TOP data matching & recovery process  Develop internal processes for agency debtor updates  Expected Results  Increase in total overpayments collected ($2 million est.)  Higher rate of delinquent debt collections  Improved establishment vs. collection ratio  Dramatic postage savings ($1 million est.)  Continued Trust Fund solvency 17

18.  Killer App:  Description of Issue:  Filing for unemployment benefits is a major responsibility, one most claimants undertake without actually knowing the ins and outs of the process. For that reason, the Department of Employment Services is looking at revamping the claims process to include an entrance counseling that will cover the Claimant’s Rights and Responsibilities (BRI). This initiative is modeled after the federal government student loan program, which requires entrance counseling for any undergraduate student who is applying for a Direct Loan, and has no previous application on file. 18

19.  Killer App (Cont’d):  Description of Solution:  The entrance counseling will be used to advise claimants on their rights and responsibilities as a recipient of unemployment benefits.  Claimants will be able to meet their entrance counseling requirements by taking the tutorial highlighting important aspects of the BRI when they initially file a claim for benefits.  Once they complete the tutorial they will be given a 5 question quiz focused on weekly reporting requirements. 19

20.  Killer App (Cont’d):  Anticipated results:  An improved Benefits Rights and Responsibilities process which will ensure that 100% of new claimants are educated on the guidelines that govern their receipt of UI benefits.  A reduction in the number of claimants who have under- reported earnings due to a lack of understanding of the weekly filing requirements.  The ability for the Agency to meet its two year goal of reducing improper payments.  Improved claimant accountability that facilitates more efficient appeals processing. 20

21.  Killer App (Cont’d):  Cost / Benefit explanation:  Based on 2010 BAM Annual Report numbers 71% of dollars overpaid were due to claimant errors, this equaled $9,744,104.00 in improper payments.  Modifications to the existing software, which will incorporate the entrance interview will cost $90,000.00.  The District expects that there will be a decrease in improper payment by 35% or $3,410,437.00 during the first year of implementation. 21

22. “Integrity: Own It!”  Questions?  State Contact for follow-up: Rhonda Cowie: rhonda.cowie@dc.govrhonda.cowie@dc.gov Phone: 202/698-6624 Or Andrew Rogers: andrew.rogers@dc.govandrew.rogers@dc.gov Phone: 202/671-1676 22