Finding No.: 2021-025
AL Program: 17.225 - Unemployment Insurance
Area: Special Tests and Provisions – UI Program Integrity - Overpayments
Questioned Costs: $0
Contact Person(s): Zachary Taitano, PUA Program Manager, DOL
Corrective Action Plan:
Condition 1:
CNMI DOL agrees with this findin...
Finding No.: 2021-025
AL Program: 17.225 - Unemployment Insurance
Area: Special Tests and Provisions – UI Program Integrity - Overpayments
Questioned Costs: $0
Contact Person(s): Zachary Taitano, PUA Program Manager, DOL
Corrective Action Plan:
Condition 1:
CNMI DOL agrees with this finding. However, on September 18, 2020, CNMI DOL reached out to the National Association of State Workforce Agency (NASWA) with respect to establishing access to the Integrity Data Hub’s Fraud Alert System. Moreover, on April 19,2023, CNMI DOL established a direct line of communication with the Office of Inspector General via email and registered for the Integrity Data Hub. Currently, the CNMI does not have access to report fraudulent cases to the National Association of State Workforce Agency (NASWA). Rather, as advised by our point of contact at the OIG, we are to inform them of any cases deemed as fraud and transmit via an encrypted file for further investigation.
Condition 2:
CNMI DOL agrees with this finding. Overpayment Case No. PUAOP000181 was initially served their Notice of Overpayment on September 14, 2020 and was later revised/resent on May 13, 2021 due to discrepancies found within the initial Notice of Overpayment. Although the Notice of Overpayment was prepared and sent to our Tinian Department of Labor Office to be served, contact with the claimant was unable to be established at that point.
Condition 3:
CNMI DOL does not agree with this finding. With respect to OP Case No. PUAOP000691, repayment was not necessary as the payment in this overpayment case was processed as a paper check. The paper check was noted as “Intercepted” due to having an out-of-state mailing address.
Therefore, the initial benefit disbursement was not received by the claimant. No official overpayment determination was issued as payment was intercepted.
Condition 4:
CNMI DOL agrees with this finding. However, it is important to note that the PUA program’s applicable law is based on a combination of federal statutes, changing federal guidance/operating instructions, state laws from a jurisdiction that already had an established local unemployment program, and established federal regulations from a different program.
At the time of drafting the Standard Operating Policies and Procedures, the available laws and guidance with respect to appeals were vague and limited. Consequently, the Administrative Hearing Office relied on DUA regulations (20 CFR 625.30) and DUA Guidance (ET Handbook 356). The DUA program imposed a 30-day requirement to allow for second level appeals. Subsequently, the Continued Assistance Act provided that PUA Appeals would follow Hawaii State Law. Notably, the federal
statutes did not impose a hearing/decision turn around requirement. Further, Hawaii Employment Security Law only required that hearings must be scheduled and heard promptly. HRS 12-5-93. This provision rendered the 30-day requirement and second level appeals under the DUA program moot and inapplicable.
Condition 5:
CNMI DOL agrees with this finding and is collaborating with the Secretary of Finance’s Office to establish a streamlined process for handling cancelled, stale-dated, voided, and/or rejected paper checks or ACH payments.
Proposed Completion Date: Ongoing