1. October 14, 2011 UT

2.  Benefit Year Earnings (BYE): Root Causes Identified:  Agency Causes  Communication  Claimant Causes  Lack of UI Rules Knowledge  Does not read/understand Claimant Guide  Does not listen to or remember instructions  Blatant disregard for UI Rules (a.k.a. Fraud)  Unsure of wages earned  Employer Causes  Not Responding to 613 or to New Hire Registry  Providing inadequate, inaccurate, or incomplete information on 613 2

3.  Benefit Year Earnings (BYE): Planned actions to address:  Cross-match Enhancements  NDNH  SDNH  National Guard  Jail  Provide help text for calculation of earnings on Weekly Filing  Allow claimants to view the earnings they reported on the Internet. Principal milestones:  Complete all BYE projects by September 2013 3

4.  Separations (SEPs): Root Causes Identified:  Agency Causes  Communication  Claimant Causes  Misreporting Separation Type  Not providing a complete list of employers  Employer Causes  Not Completing Form 606  No response  Inadequate Response  Not Completing Form 613  No response  Inadequate Response 4

5.  Separations:  Planned action(s) to address:  Implement SIDES wage/earnings verification module and SEW  Re-word 606 and 613  Include message letting employers know that failure to respond  Could increase employer rates  Will result in them being considered a disinterested party in an appeal hearing  BPC/BAM will submit article for Quarterly Employer news letter  When listing type of separation include help text containing separation definitions.  Principal milestones:  Complete all Separation projects by December 2012 5

6.  Work Search Issues: Root Causes Identified:  Agency Causes  Communication  Granting inappropriate deferrals  Claimant Causes  Lack of UI Rules Knowledge  Does not read/understand Claimant Guide  Does not listen to or remember instructions  Blatant disregard for UI Rules (a.k.a. Fraud)  Does not understand deferral questions 6

7.  Work Search Issues :  Planned action(s) to address:  Require documentation of 4 job Contacts on Web continued claims  When listing four required work searches on-line, create an IR issue when the claimant lists repeat employer contacts from the same or previous weeks. Also create issue when all four contacts are not entered.  Update Claimant Guide and/or add messages during web weekly filing to include unacceptable reasons for not doing work search  Select more telephone filing claimants to receive an ER within first five weeks of paid weekly claims (or after their deferral ends).  Analyze deferral questions to ensure clarity so that deferrals are not being given inappropriately.  Principal milestones:  Complete all work search projects by December 2012 7

8. 8  Issue 1:  Root cause identified:  Deceased claimants continuing to claim benefits  Planned action(s) to address issue  Develop a Vital Statistics Cross-match.  Principle milestones  Complete project by September 2012

9.  Strategies to Support Owning UI Integrity:  Maintain UI Integrity Task force  Generate and analyze ideas to continually improve integrity  Implement Tax Offset program  Aggressive recovery of improperly paid benefits serves as a deterrent to potential offenders.  Develop integrity script for REA workers to read to claimants during the REA interviews  Remind claimants of what constitutes fraud and what penalties await those who engage in such activities. 9

10.  Communications Strategies:  To claimants  Maintain a Frequently Asked Questions section on the agency website.  Move fraud warnings and explanations to the front in the claimant guide (or closer to the front), or add a fraud warning summary near the front of claimant guide.  More effectively inform claimants of the consequences of providing false information (i.e. penalties). Mention specific examples. Explain that with penalties, claimants committing fraud have to repay twice the benefits they received.  On the web, include a hover box that describes the fraud penalty on the page where they see the Continued Claim certification text.  Clarify what “penalty of perjury” means in the Continued Claim certification text.  The able and available (AA) question on the Weekly claim will be made clearer, by using same wording as on the initial claim. 10

11.  Communications Strategies, Continued:  To employers  On-going Employer Outreach on importance of participating in UI claims processes  Re-word 606 and 613  Include message letting employers know that failure to respond  Could increase employer rates  Will result in them being considered a disinterested party in an appeal hearing 11

12.  Killer App:  Description of Issue:  Currently, State New Hire and National New Hire cross matches are run on a daily basis, and information is routed to CUBS queues.  BPC technicians manually work these queues by attempting to call employers and get wage information over the phone.  Generally, the requested information is not immediately available, so technicians follow-up by faxing wage information requests to the employers.  All returned wage information requests are electronically imaged and scanned by support staff.  Once scanned, wage information form images are attached to BPC investigation queues and manually reviewed by technicians.  If no issue exists, technicians clear the case.  If an overpayment, separation, or fraud issue exists, technicians create overpayment tables and forward the cases to investigators or to adjudication.  The numerous manual functions in current BPC processes waste BPC staff time and reduce their efficiency. Consequently, many overpayments that could be identified are not identified, and therefore are not collected. 12

13.  Killer App:  Description of Solution:  BPC Integrity Automation Project  The new system will automatically fax or mail requests for information to employers to independently confirm work and earnings information obtained from State New Hire and National New Hire cross match data.  A web interface with Utah’s Comprehensive Unemployment Benefits System (CUBS) will be built.  The web interface will allow employers to respond electronically to all cross match generated wage information requests.  Employers will be able to submit claimant’s weekly earnings and separation information online to Utah’s Benefit Payment Control (BPC) unit.  The system will automatically:  Compare information supplied by employers  Identify potential overpayments  Generate notices requesting information from claimants  Mail the notices to claimants 13

14.  Killer App:  Anticipated results:  As a result of this new system, BYE overpayment detection is projected to increase by 30%.  Improper payments are projected to be reduced by 15% in the first year after project implementation. 14

15.  Killer App:  Cost / Benefit explanation:  Automatically faxing or mailing requests for information to employers to independently confirm work and earnings information obtained from State New Hire and National New Hire cross match data will result in a savings of approximately 9,750 BPC staff hours annually.  Approximately 12,127 BPC employee staff hours will be saved annually as a result of implementing:  The new web interface with CUBS  The revision and automation of forms  The automation of overpayment identification  The automation of creating overpayment notices and mailing them to claimants  Times savings described in above total 21,877 hours annually.  Total projected annual additional overpayments and penalties detected are $4,302,000. 15

16. “Integrity: Own It!”  Questions?  State Contact for follow-up: Charles Amonett: camonet@utah.govcamonet@utah.gov Phone: (801)526-4497 16