Finding 1201302 (2025-009)

Finding No. 2025-009 ALN No. 17.225 Program Title: Unemployment Insurance Grant Award No.: 25-A55-UI-000105 Condition Based on our analysis of the claims processing data, the State is not in compliance with the BAM State Operations Guidance Part 602, as the minimum number of cases for paid claims was not met. Corrective Action Plan Concur. 1. The BAM unit continues to have vacancies and remain understaffed. 2. The unit is in the process of filling a vacancy with an experienced adjudicator. Once the position is filled, the new staff member will be trained in BAM methodology. At this time, the BAM supervisor continues to help the unit toward achieving its BAM requirements. 3. The unit anticipates increasing the number of cases for paid claims beginning June 2026. Person Responsible Sheryl-Lynn Ozaki, UI Quality Control Supervisor Anticipated Date of Completion June 2027 In response to the finding State of Hawaii – Single Audit 2025 finding, the DLIR offers the following: The auditor’s recommendation for the DLIR to develop new policies and procedures to handle the increase in unemployment claims fails to recognize the true source of the deficiency. The shortcoming is a direct result of staffing shortages. A key requirement of the BAM program is for the unit to be staffed with a sufficient number of knowledgeable and skilled investigators to ensure prompt and in-depth investigations. The investigator should be knowledgeable about and trained in the application of federal and state unemployment insurance laws, regulations/rules, and official policies; able to interpret and apply laws and official policies to each claimant's situation; proficient in fact-finding and determination procedures, including the process of interviewing interested parties and providing the opportunity for fair hearings and rebuttals; use independent judgment to develop and analyze evidentiary facts, assess credibility, weigh the evidence obtained, and decide when information is sufficient to issue legally binding decisions; determine appropriate administrative actions required; authorized to change computerized records as needed to pay or stop payment of benefits; prepare timely written decisions to deny or allow benefits which clearly communicate the facts, conclusions and reasoning used to support the decisions; be knowledgeable of the methods to effectively deal with claimants/customers, employers, or others who are under stress, experiencing negative emotions, etc. including handling and controlling conflict; knowledgeable about and skilled in the navigation of the state’s benefit, employment service, and tax systems; and knowledgeable about and compliant with BAM methodology and coding instructions. Regardless of new policies and procedures, the shortcoming is a direct result of the lack of available skilled investigators with the required skills to conduct prompt and in-depth investigations in the BAM program.