Form Esd-Ark-501 - Application For Unemployment Insurance Benefits Page 5
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12Arkansas Division of Legislative Audit
USDOL
requires
all
states
to
review
statistics show 1,000 FIRE Unit investiga-
processed claims so that the USDOL can
tions, on average, are initiated each week.
calculate each state’s estimated amount of
When completed timely, the quarterly match
benefits
overpayment.
The
USDOL
process effectively identifies overpayments.
predetermines the claims to be selected for
However, the process cannot be completed
testing, and states are expected to review a
for up to five months for two reasons that are
minimum number of cases each week. The
beyond DWS’ control: First, employer quar-
USDOL expects Arkansas to review a
terly wage files can be received manually or
minimum of 10 paid claims and 9 denied
electronically, and second, time must be
claims each week, totaling 480 paid claims
allowed for interstate wages (i.e., Arkansas
and 450 denied claims per year.
wages employers report to another state) to
be processed and submitted to a national
The primary purpose of the testing is to
database.
identify system-wide errors and prevent
future errors. The BAM Unit then tracks the
BPC Unit
impact of corrective actions by monitoring
the results of subsequent testing.
BAM
The BPC Unit’s function is to record,
testing results are submitted to a USDOL
calculate, manage, collect, and report on all
database and reported on the USDOL’s
benefit overpayments identified by DWS.
website using varying rate measurements.
Overpayment reimbursements are received
from claimants, courts, and DFA state in-
FIRE Unit
come tax refund intercepts.
The FIRE Unit investigates claimants who
Federal Calculation of Overpayments
incorrectly reported earnings, and prosecu-
tion is pursued if the benefit overpayment
BAM Unit testing data are used to ensure the
amount is more than $12,000. FIRE collects
integrity of the systems states use to
evidence for Arkansas prosecuting attorneys
administer unemployment insurance benefits
who then determine if criminal charges will
and to verify those processes comply with
be filed.
federal requirements.
Using each state’s
BAM testing results, the USDOL then
The FIRE Unit uses specialized software to
calculates and reports the estimated over-
automate
processing
of
85%
of
its
payment amount on its website and to the
investigations. This automation is designed
federal Office of Management and Budget.
to identify claimants recently hired to new
jobs who continue to file weekly benefit
On September 16, 2011, the USDOL
claims through two cross matching proc-
released statistics on unemployment benefit
esses: a quarterly benefit/wage match and a
overpayments for all states based on BAM
weekly new hire data match. The benefit/
Unit testing data.
Arkansas was listed as
wage data, which identify those claiming
having an overpayment performance meas-
unemployment
benefits
while
drawing
ure of $161.3 million in unemployment
wages, are derived from federally mandated
benefits from July 1, 2008 through June 30,
quarterly employer payroll reports.
2011. The USDOL cited the primary over-
Each quarterly cross match compares DWS
payment cause in 63% of cases as claimants
weekly paid claims to the employer quarterly
continuing to claim and receive benefits after
wage file information for the same time
returning to work. The USDOL also reported
period.
This matching process generally
that DWS is fully or partially responsible for
takes one week to complete. Because FIRE
15% of the $161.3 million estimated overpay-
Unit resources are limited to six investiga-
ments, with the claimant or employer being
tors, the number of investigations opened is
fully or partially responsible for the remaining
based on staffing availability. Recent DWS
85%.
The USDOL ranked Arkansas as
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