Reference Number: 2022-004 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 ? Unemployment Insurance Assistance Listing Number: 17.225 A...
Reference Number: 2022-004 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 ? Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI340502055A10 (10/1/2019 ? 12/31/2022), UI347072055A10 (4/1/2020 ? 6/30/2023), UI372152255A10 (10/1/2021 ? 12/31/2024) Compliance Requirement: Special Tests and Provisions ? UI Benefit Payments Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation We recommend the Division review and enhance procedures and controls to ensure that BAM case investigations are completed timely in accordance with the time limits established in the ET Handbook No. 395. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. The BAM Unit experienced high turnover volumes during the pandemic, creating a backlog of UI Benefit investigations. The pandemic also changed the workforce dynamic, creating a culture of fully remote jobs in many job markets, which left most State agencies struggling to fill positions; because of this, State Government lost its competitive edge as an employer, resulting in low applicant response to job postings. It took the BAM unit several job reposting?s to get vacancies filled. However, we have filled most of the vacancies and will conduct interviews on Friday, 03/24/23, to fill the remaining two vacancies in the unit. We also recently made a change to our training strategy. There will be consecutive weeks of training in a classroom setting, along with OTJT. The BAM unit also assigns all available NASWA training to new hires during their first weeks of employment. We chose this training strategy to provide all new hires with consistent training to ensure understanding of the BAM investigative process. In addition, we will be hiring a Sr. accountant who will focus on all backlog items only. We are also in the process of converting all paper-driven methods to fully electronic ones. All BAM employees will receive the necessary tools, training, and work-from-home equipment for working successfully from home, allowing us to maintain production in case of another catastrophic event. Name(s) of the contact person(s) responsible for corrective action: Edward Gregware, Ann Marie Vanderhout, and Marie Cameron Planned completion date for corrective action plan: The management team is working on a plan to resolve all case investigation backlogs. We will be hiring a Sr. Accountant who will focus solely on backlogged cases. We now have three QC BAM auditors and will be hiring a fourth. Once fully trained, all BAM auditors will be assigned 7 cases weekly to complete within 45 days to ensure we meet the time frames established in the ETA Handbook No. 395. An auditor takes approximately 3 to 6 months to train and operate independently. At a minimum, it will take around 12 to 18 months to get new hires properly trained and backlogs resolved.