Arkansas Department of Workforce Services - Review of Unemployment Insurance
positive effect upon the prevention and detection
issue necessary determinations and adjust
of possible unemployment insurance overpay-
the claim to restart the payment process.
ments. DWS has developed an Internet applica-
Weekly Claim Filing
tion that allows employers to receive and respond
to the Notice to Last Employer (DWS 501.3),
After filing an initial claim, claimants must
Notice to Base Period Employer (DWS 550), and
establish weekly eligibility to continue receiv-
all of the Adjudication Questionnaires (DWS 525).
ing benefit payments. Weekly claims may be
DWS is working with select employers to perfect
filed online or through an automated tele-
the application. DWS also has an Internet appli-
cation,
the
Internet
Response
Module
for
phone system.
Based on the information
Employers (IRME), that allows employers to
filed, payment will continue or be flagged due
receive notice of and respond to Wage Audit
to issues such as ability to/availability for
Notices (DWS 901A).
DWS will continue to
work, refusal of a job offer or recall to work,
explore means of incorporating electronic media
separation issues, and earnings issues.
If
into its processes that will reduce employer
flagged,
payments
are
suspended
until
response time and improve our prevention and
issues are resolved. As with initial claims,
detection efforts.
flagged issues are assigned to a DWS
Unemployment Insurance Overpayments
adjudicator for resolution.
The federal regulations that require DWS to
Appeals Process
provide initial benefit payments within 14
A
DWS
determination
concerning
the
days cause DWS to render benefits to
eligibility of an unemployment insurance
otherwise ineligible claimants, resulting in
claim may be appealed to the Arkansas
overpayments.
In effect, routine overpay-
Appeal Tribunal comprised of 12 DWS
ments of benefits are anticipated because of
hearing officers. A subsequent hearing either
the federal limitation on the time states have
affirms, reverses, or modifies DWS’ de-
between when a benefits claim is filed and
termination. An appeal may be made to the
when DWS must determine a claimant’s
Arkansas Board of Review, which affirms,
eligibility. However, DWS works to minimize
reverses, or modifies the Appeal Tribunal’s
overpayments through management controls
findings and conclusions.
The Board con-
as discussed below.
sists of three Arkansas citizens appointed by
Management Controls to Reduce and
the Governor. All Board decisions may be
Identify Overpayments
appealed by petition to the Arkansas Court of
Appeals within 30 calendar days.
The USDOL mandates that states have
procedures in place to estimate the overall
Based on our review of the claim filing,
benefits
amounts
overpaid
and
review
approval, and appeal process, we conclude
individual claims to identify overpayments
DWS should enhance the efficiency and
that can be recovered. DWS utilizes a variety
effectiveness of its controls to limit the need
of state efforts to identify and prevent
to
obtain
additional
information
from
erroneous payments and disqualifying de-
claimants and employers.
terminations.
This report focuses on three
We
recommend
DWS
adopt
additional
DWS units used to reduce and identify
preventive
and
detective
controls
by
overpayments: Benefit Accuracy Measure-
ncreasing its use of electronic correspon-
ment (BAM); Fraud Investigations, Recovery,
i
dence with employers, rather than postal
and
Enforcement
(FIRE);
and
Benefit
mail, to reduce the time needed to gather
Payment Control (BPC).
information verifying eligibility.
BAM Unit
Management Response:
The BAM Unit provides quality control for
DWS agrees that electronic correspondence with
DWS by testing processed claims.
The
employers helps reduce response time and has a
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