Fiscal year 2023 state unemployment quality service plans

RESCISSIONS: None
EXPIRATION DATE: December 31, 2023

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 Unemployment Insurance
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OUI/DPM
             Washington, D.C. 20210                       DATE
                                                          July 22, 2022


ADVISORY:       UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 17-22

TO:             STATE WORKFORCE AGENCIES

FROM:           BRENT PARTON
                Acting Assistant Secretary

SUBJECT:        Additional Planning Guidance for the Fiscal Year (FY) 2023 Unemployment
                Insurance (UI) State Quality Service Plan (SQSP)

1. Purpose. To initiate the SQSP process and define additional requirements for the FY 2023
   SQSP.

2. Action Requested. The Employment and Training Administration (ETA) requests State
   Administrators to:

   •   Make this information available to appropriate staff;
   •   Prepare their state’s SQSP in accordance with planning and reporting instructions
       contained in Employment and Training (ET) Handbook No. 336, 18th Edition, Change 4
       and instructions in this Unemployment Insurance Program Letter (UIPL);
   •   Coordinate specifics, as appropriate, with ETA’s Regional Office (RO) for electronic
       submission of the SQSP; and
   •   Submit the FY 2023 SQSP to the appropriate RO by the deadline set by the RO.

3. Summary and Background.

   a. Summary – This UIPL provides specific dates relevant to the SQSP process for the FY;
      summarizes National Priorities and Federal Program Emphasis; and identifies special
      planning requirements in effect for the FY.

   b. Background – The SQSP is the state’s UI performance management and service plan. It
      represents an approach to the UI performance management and planning process that
      allows for an exchange of information between Federal and state partners to enhance the
      UI program’s ability to reflect their joint commitment to performance excellence and
      client-centered services. As part of UI Performs, the comprehensive performance
      management system for the UI program, the SQSP is the principal vehicle that state UI
      programs use to plan, record, and manage improvement efforts as they strive for
      excellence in service. Title III of the Social Security Act (SSA) authorizes the Secretary
      of Labor (Secretary) to provide funds to the states to administer the UI program and


       governs the expenditure of those funds. The SQSP is part of the process by which states
       receive Federal UI administrative grants.

       ET Handbook No. 336 (Handbook) contains general instructions for the SQSP. The
       Handbook is designed as a permanent guide for the planning and budget process and
       provides states with planning guidelines and instructions for reporting UI financial and
       staff year information. The Handbook notes that ETA will issue a SQSP UIPL each year
       with additional planning guidance that supplements the Handbook and provides direction
       and instructions specific to the upcoming FY. Though this additional planning guidance
       is similar to the guidance issued in previous years, there are changes relevant to the FY
       2023 SQSP cycle. Therefore, please review the new guidance carefully.

       The Handbook is approved under the Office of Management and Budget (OMB)
       No. 1205-0132. The current approval expires on February 29, 2024.

4. National Priorities. For FY 2023, ETA will continue to strive to make the SQSP process a
   meaningful management tool and a strategic road map to improve program administration,
   strengthen program integrity, and ensure quality service delivery. The SQSP process focuses
   on promoting state performance and integrity, aligning state UI administration and operations
   with national policies, rebuilding program performance, paying benefits accurately and
   timely, ensuring equitable access, combatting fraud, detecting and preventing improper
   payments, recovering overpayments, and connecting UI claimants with needed
   reemployment services. Each year, after discussion among the senior UI leadership, ETA
   establishes National Priorities for the UI program.

   On March 11, 2021, the President signed the American Rescue Plan Act of 2021 (ARPA)
   into law (Public Law (Pub. L.) 117-2). Section 9032, ARPA, provided for a $2,000,000,000
   appropriation to the Secretary to detect and prevent fraud, to promote equitable access, and to
   ensure timely payment of benefits to eligible workers with respect to unemployment
   compensation (UC) programs.

   For FY 2023, ETA’s top priorities align with reemployment strategies and ARPA goals and
   initiatives. The FY 2023 National Priorities are intended to guide states in the development
   of their SQSPs and include:

   •    Rebuilding and improving program performance by addressing the significant impact
        that the workload created by the Coronavirus Disease 2019 (COVID-19) pandemic
        continues to have on the UI system;

   •    Focusing on improving the timely delivery of benefit payments and the reduction of the
        UI adjudication and appeals backlogs;

   •    Ensuring equitable access to UI programs;

   •    Supporting the Reemployment of UC Claimants through Reemployment Services and
        Eligibility Assessment (RESEA), Short-Time Compensation (STC), Robust Work
        Search Activities, and Other Targeted Initiatives.


•   Combatting fraud; strengthening identity verification; improving prevention, detection,
    and recovery of improper and fraudulent overpayments; and reducing the UI improper
    payment rate;

•   Addressing Worker Misclassification; and

•   Ensuring Accurate and Complete Filing and Reporting of ETA Required Reports.

ETA provides the following information on its National Priorities for FY 2023. States
should also establish additional state-level priorities for their respective UI programs in their
SQSPs.

Rebuilding and Improving Program Performance by Addressing the Significant Impact
that the Workload Created by the COVID-19 Pandemic continues to have on the UI
System

The unprecedented claims workload during the pandemic significantly impacted states’
capacity to administer and operate UI programs. Many states continue to struggle with
administrative and operational challenges resulting in performance and customer service
issues. These challenges include but are not limited to: changes in state program leadership;
aging technology systems and/or implementing new technology solutions; managing the loss
of key subject matter expertise due to staff retirements and turnover; hiring new staff,
requiring ongoing staff training and increased supervision; loss of contracted staff support;
combatting an increase in fraud; and the need to improve overall program performance.
States experienced these challenges during the COVID-19 pandemic and the resulting
significant increase in UC claims, and are likely to continue to face the residual effects of
issues in the coming months and years.

In developing their FY 2023 SQSPs, states are strongly encouraged to incorporate
administrative performance improvement strategies such as:

•   Leveraging ETA’s multidisciplinary consultative assessment Tiger Team and associated
    grant funding opportunities available under UIPLs No. 02-22 and 02-22, Change 1 as a
    means to: 1) preventing, detecting, and recovering funds from fraud; 2) promoting
    equitable access; and 3) ensuring the timely payment of benefits as well as activities to
    reduce workload backlogs, for all UC programs.

•   Conducting business process analyses in key areas to identify opportunities and
    recommendations for improving program operations, integrity, and performance, and
    implementing such recommendations.

•   Reviewing service delivery processes to ensure that current web-based, telephone-based,
    and other remote UI services provide and promote alternative mechanisms for
    individuals with access to barriers, such as a disability or limited English proficiency.
    See UIPLs No. 02-16 and 02-16, Change 1.


•   Reviewing staff training strategies to support succession planning and ongoing staff
    development.

•   Using online training modules available through the National Association of State
    Workforce Agencies’ (NASWA) learning management platform at
    https://www.naswa.org/learning.

•   Incorporating lessons learned from the COVID-19 pandemic, including the significant
    increase in UC claims and implementation of the temporary Coronavirus Aid, Relief, and
    Economic Security (CARES) Act UC programs, such as managing rapid changes in
    staffing, implementing call center expansions, and innovations to manage customer flow,
    and technology solutions to increase capacity and detect and prevent fraud and other
    improper payments.

•   Using technical assistance opportunities offered by ETA, UI Information Technology
    Support Center (ITSC), the UI Integrity Center, the US Digital Response, and the US
    Digital Service as well as the many resources available through the UI Community of
    Practice (CoP) on WorkforceGPS at https://www.workforcegps.org/.

Focusing on Improving the Timely Delivery of Benefit Payments and the Reduction of the
UI Adjudication and Appeals Backlogs

States experienced extraordinary workloads due to the economic impacts of the COVID-19
pandemic while managing the implementation and operation of temporary CARES Act UC
programs. However, there remains a heightened need for states to maintain a steadfast focus
on UI functions and activities that improve the timely payment of benefits. Under Section
303(a)(1) of the SSA, a state’s laws must provide for “methods of administration” that are
“reasonably calculated” to insure full payment of UC “when due” in order to receive a UI
administrative grant. “When due” is the basis for Federal requirements concerning
timeliness of benefit payments and eligibility determinations.

Many states continue to struggle with significant numbers of pending adjudications and
appeals because of the impact of the pandemic. In preparation of the FY 2023 SQSP, states
should examine strategies and processes with the goal of quickly reducing the level of
backlogs. As discussed below and as part of the FY 2023 SQSP process, states must describe
their plans to address any pending adjudication and appeals backlogs and submit monthly
updates to the ROs on the number of adjudication and appeals cases that are still pending.
This information should represent the number beyond the usual expected number of pending
adjudications and appeals (e.g., 21 and 30 days, respectively) for regular operations.

Ensuring Equitable Access to UI Programs

A top priority of the U.S. Department of Labor (Department) is ensuring equitable and
meaningful access to the UI program. Section 303(a)(1) of the SSA, discussed above,
includes a requirement that a state’s methods of administration include insuring full payment
“when due.” The Department interprets this to include a requirement of equity so that
individuals have sufficient access to the program so that eligibility can be determined, and


    UC payments can be made, “when due.” Equity in the UI programs is also a requirement of
    funding set out in Section 9032 of the ARPA.

    On January 20, 2021, the President issued Executive Order (EO) 13985 concerning
    advancing racial equity and support for underserved communities. This EO articulates the
    importance of advancing equity for all, including people of color and others who have been
    historically underserved, marginalized, and adversely affected by persistent poverty and
    inequality. This includes, low wage workers, Black and Hispanic/Latino workers,
    individuals with disabilities, and individuals with limited English proficiency. Advancing
    equity requires a systematic approach to embedding fairness in decision making processes
    and eliminating barriers to access. Public programs must be designed to serve all individuals.
    For this reason, the Federal Government should, consistent with applicable law, allocate
    resources to address the historic failure to invest sufficiently, justly, and equally in
    underserved communities, as well as individuals from those communities. Therefore, state
    UI agencies must ensure that use of technologies and systems for administering UI programs
    and providing services do not create barriers (e.g., procedural, technological, or
    informational) that may prevent individuals from accessing UC, such as by denying them a
    reasonable opportunity to establish their eligibility.

    States are reminded of the Management Report, issued by the U.S. Government
    Accountability Office (GAO)1 on June 17, 2021, regarding potential racial and ethnic
    disparities in the UI program during the pandemic. On June 7, 2022, GAO published a report
    about the Pandemic Unemployment Assistance program that found evidence of racial
    disparity in benefit receipt2. States are encouraged to examine any available claimant
    demographic data to help inform strategies to enhance outreach and education about the
    program to underserved communities. States should also explore strategies to improve their
    state’s UI program recipiency rate. In addition, states should focus on UI functions and
    activities that ensure equitable access to these programs. UIPLs No. 02-16 and 02-16,
    Change 1, outline the requirements that states must meet to ensure access to the UI program
    and timely payments are made to eligible individuals.

    States should discuss how they are improving their UI programs to reduce or eliminate
    barriers to access and any equity issues across the claimants’ journeys. This could include
    but it is not limited to discussing the state’s approach to:

    •    Simplifying communications;

    •    Enhancing translation services;

    •    Engaging claimant-focused community organizations to provide feedback on pain
         points, education campaigns, and cultural competency;


•   Creating feedback loops across the states’ diverse communities and claimants;

•   Developing and utilizing demographic, geographic, and industry data across the
    claimant journey to discover and fix pain points across populations;

•   Improving in-person and phone services;

•   Improving online accessibility and usability across computer and phone devices; and

•   Improving educational content available in both in person and electronic means.

States that received equity grants under UIPL No. 23-21 are encouraged to include the equity
strategies they are pursing using these grant funds in their FY 2023 SQSPs.

Supporting the Reemployment of UC Claimants through RESEA, Short-Time
Compensation (STC), Robust Work Search Activities, and Other Targeted Initiatives

RESEA for individualized reemployment services

As the nation’s economy continues to reopen and labor market needs shift in response to the
pandemic’s impact, the reemployment of UC claimants remains a top priority for the entire
workforce system. The UI program supports reemployment through a variety of targeted
strategies and RESEA provides a dedicated funding stream for states to provide
individualized reemployment support. RESEA, codified in Section 306 of the SSA, is
permanently authorized and states have been directed to prioritize the rebuilding of this
program following pandemic related program disruptions. UIPL No. 10-20 and Training and
Employment Guidance Letter (TEGL) No. 05-21 provided the FY 2022 RESEA operating
guidance, including instructions for the implementation of the latest program requirements.
States have also submitted their Workforce Innovation and Opportunity Act
(WIOA) state plans, which should reference the integration of RESEA into their broader
workforce system and reemployment strategies.

States are permitted to reference their RESEA and WIOA state plans in the SQSP rather than
replicate these strategies and approaches. States should also discuss how their RESEA
strategies support reducing improper payments, including the review of claimant eligibility
and providing services that help them comply with work search requirements.

STC as a lay-off aversion program.

The STC program (known also as “worksharing” or “shared work”) is a lay-off aversion
program in which an employer, under a state-approved plan, reduces the hours for a group of
workers and these workers in turn receive a reduced UC payment. In the context of re-
opening businesses closed temporarily by a pandemic, STC can also serve as a means of
bringing most or all of a temporarily laid-off workforce back to the job, even if social-
distancing measures, a decline in business, or other factors prevent operating at full staffing
levels full-time. Section 2110 of the CARES Act, as amended, provided for grants to states


to promote the program and enroll employers in an STC program (see UIPL No. 22-20).
Eligible states are encouraged to apply for these grant funds before the deadline of
December 31, 2023.

Robust Work Search Activities.

As a condition for grant eligibility, state UC laws must include a work search requirement
(see Section 303(a)(12), SSA). Each state defines acceptable work search activities through
its laws and policies – which vary widely in the types of activities that qualify as acceptable
work search activities.

Training and Employment Notice (TEN) No. 17-19 provides states with model work search
legislation focused on proactively referring claimants to suitable work, establishing a
comprehensive definition of acceptable work search activities that focuses on rapid
reemployment, and providing fair notice and documentation requirements. It is a best-
practice for states to have a fully integrated workforce system that focuses its collective
efforts on assisting claimants getting back to work as quickly as possible in suitable jobs in
the following ways:

Strategies to consider include:

•   Requiring work search activities that embrace a wide array of activities that support
    reemployment in today’s labor market and include receiving services through American
    Job Centers;

•   Supporting claimant compliance with required work search activities through a
    reemployment service delivery design that includes developing clear, plain language
    work search requirements that: 1) help to ensure that claimants understand work search
    requirements (both acceptable activities and documentation requirements); 2) helps to
    ensure that claimants understand the consequences of failing to comply with these
    requirements; and 3) provides assistance in developing a reemployment plan that meets
    the requirements, including through customer-friendly technology applications that
    facilitate claimants carrying out tasks that meet their work search requirements;

•   Encouraging states to proactively identify and refer claimants to suitable job openings
    from public and private job banks, and ensure that claimants accept employment in
    suitable work if offered;

•   Documenting these activities through the state’s case management system or other
    information technology (IT) systems that support documentation requirements; and

•   Providing case management services through American Job Center career counselors,
    which include following up with claimants and employers on the results of job referrals
    to inform future job referrals and/or the need for additional reemployment services for
    the claimant.

There are additional strategies states should consider in developing their work search
requirements and designing reemployment service delivery strategies that support a


claimant’s ability to comply with a state’s work search requirements and help to mitigate
improper payments. States are strongly encouraged to implement these additional strategies
to address work search errors and incorporate those strategies into the Integrity Action Plan
(IAP) as part of the SQSP.

•   Designing the state RESEA program to support the development of an individual
    reemployment plan that can help each claimant effectively plan work search activities,
    and making such services available virtually to support a broader reach;

•   Encouraging RESEA and other workforce career counselors to take advantage of the My
    Reemployment Plan tools that are designed to support development of individualized
    reemployment plans and connect claimants to effective reemployment resources (see
    https://rc.workforcegps.org/resources/2016/10/03/05/36/Pathway_to_Reemployment_Fr
    amework), with an automated version now available from UI ITSC; and

•   Reinforcing the requirement to complete work search activities throughout the claims
    cycle through the use of behavioral messaging in electronic communications, either in
    an online technology application or through emails or texts, to “nudge” claimants to
    comply with work search requirements.

Combatting Fraud; Strengthening Identity Verification; Improving Prevention, Detection,
and Recovery of Improper and Fraudulent Overpayments; and Reducing the UI Improper
Payment Rate

Working with states to address UI fraudulent and improper payments is another top priority
of the Department. ETA is also committed to supporting states in ensuring equity is a key
focus in all fraud prevention efforts and a major factor in all discussions in order to address
this issue comprehensively and compassionately. This balance means that preventing and
detecting fraud must not prevent eligible claimants from accessing and obtaining benefits.

States continue to deal with claims involving sophisticated, criminal identity fraud that
significantly infiltrated the UI programs throughout the pandemic. In response, many states
have developed new and innovative integrity strategies and enhanced existing integrity
efforts to combat fraud, which has included activities such as: strengthening the
cybersecurity of UI systems; implementing a variety of cross-match tools; investing in
identity verification and digital authentication solutions; increasing the use of data analytics;
bolstering fraud management operations; and revising integrity processes and procedures.
States must continue to enhance efforts to combat fraud and reduce improper payments and
stay abreast of emerging fraud schemes through ongoing communication and collaboration
with the broader UI community, which includes all state workforce agencies, ETA’s
Regional and National offices, the Department’s Office of Inspector General (DOL-OIG),
and NASWA’s UI Integrity Center.

For FY 2023, ETA is highlighting the following specific topics states must incorporate into
the SQSP IAP in addition to the other IAP requirements outlined in Section 6.d. of this UIPL:

•   State use of tools, services, strategies, process improvements, and/or procedural changes
    adopted by the state to combat fraud, verify identities, and enhance recovery efforts.


    States must identify which tools, solutions, and service provider(s) are used in the state’s
    fraud management operations, including but not limited, to the following areas: data
    analysis, identity verification, fraud prevention and detection, and cybersecurity.

•   State use of UI Integrity Center resources, with a particular focus on state connection to
    the Integrity Data Hub (IDH) and use of its datasets to cross-match UC claims and aid in
    the prevention and detection of fraud (see TEN No. 24-21);

•   State use of required and recommended cross-matches and overpayment recovery
    activities as outlined in UIPL No. 23-20, including any additional effective cross-
    matching and recovery activities and identified best practices.

•   State use and employer participation in the State Information Data Exchange System
    (SIDES) (see TEN No. 12-16); and

•   State strategies designed to facilitate claimants’ compliance with state work search
    requirements while also supporting their reemployment such as adoption of the work
    search requirements in the Model Work Search Legislation (see TEN No. 17-19).

Additional tools, strategies, process improvements, and/or procedural changes to combat
fraud, verify identities, and enhance recovery efforts

Intercepting fraud as early as possible minimizes its impact on the UI system. Fraud
detection operations and procedures, coupled with front-end identity verification tools, are
critical to ensuring payment is made timely and only to individuals entitled to receive UC.
The Department continues to strongly encourage states to adopt multiple strategies and
techniques to validate UC claims, detect and share suspicious claim attributes among states,
and consider a range of other tools available on the market when combating fraud, verifying
identities, and ensuring program integrity. In addition, states should work collaboratively
with law enforcement agencies to administer their prosecutorial actions.

Overpayment recovery is critical to protect both state UI trust funds and Federal funds and
must be given the same priority as overpayment prevention and detection. ETA strongly
encourages states to work proactively and collaboratively with Federal law enforcement to
streamline forfeiture and seizure efforts and with banks and financial institutions to facilitate
the rapid return/recovery of improperly paid UC.

ETA reminds states of program integrity functions required for the regular UC programs and
recommended integrity functions to consider incorporating into states’ fraud management
operations (see UIPL No. 23-20). In addition, ETA worked with the Social Security
Administration and NASWA to establish a secure incarceration data exchange between the
Interstate Connection Network (ICON) and the Social Security Administration's ’s Prisoner
Update Processing System to provide states with the ability to cross-match UC claims data
with prisoner records for use in determining UC eligibility (see UIPL No. 01-22). States are
encouraged to work with SSA and NASWA’s ICON Team to establish a connection to the
incarceration data exchange.


ETA provided states with significant additional funding to support states with fraud
prevention and detection, identity verification, and overpayment recovery activities in the
CARES Act UI programs and regular UC programs (see UIPLs No. 28-20; 28-20, Change 1;
28-20, Change 2; 22-21; and 02-22).

State Use of UI Integrity Center Resources

The UI Integrity Center, established and funded by the Department and operated by
NASWA’s Center for Employment Security Education and Research, Inc. (CESER), assists
states in their efforts to more effectively prevent, detect, and recover improper and fraudulent
payments. The UI Integrity Center supports states in improving UI program integrity by
developing and promoting innovative program strategies and recommending operational best
practices. The UI Integrity Center is a unique and extremely valuable resource available at
no cost to states and ETA strongly encourages states to access its services and resources on a
regular and ongoing basis to inform and support state integrity strategies, strengthen fraud
prevention and detection, enhance fraud management operations, and improve overpayment
recovery efforts. Below are key UI Integrity Center services and resources that states should
connect to and build into their IAP as part of the SQSP.

•   Integrity Data Hub. The IDH is a secure, robust, centralized, multi-state data system
    that allows participating states to cross-match, compare, and analyze UC claims data
    against a variety of datasets for enhanced prevention and detection of improper
    payments and fraud in UC programs. The IDH continues to evolve as new data sources
    are added and more states submit data for cross-matching and identify suspicious claim
    attributes. Data sources and functionality currently available through the IDH include:
    the Suspicious Actor Repository; Suspicious Email Domains; Foreign Internet Protocol
    (IP) address detection; Multi-State Cross-Match; Identity Verification solution; Bank
    Account Verification service; Fraud Alert System; and Data Analysis.

•   State Consultative Services. The UI Integrity Center is available to support states in
    assessing their business processes and provide recommendations for adoption of
    effective strategies – all with the goal of combatting fraud, reducing a state’s improper
    payment rate, enhancing overpayment recovery, and improving program integrity.

•   Capturing and Disseminating UI Program Integrity Resources, Best Practices, and
    Recommendations. The UI Integrity Knowledge Exchange Library at
    https://library.naswa.org/, is an online, searchable, knowledge-sharing platform that
    provides a repository of all UI Integrity Center resources. The Knowledge Exchange
    Library contains thousands of UI technical resources including, model state operational
    processes, promising state practices, presentations, videos, templates, and
    recommendations to strengthen UI program integrity. The UI Integrity Center also
    launched the Behavioral Insights Toolkit, which is a new collection of resources,
    articles, templates, and how-to information housed within the Knowledge Exchange
    Library at https://library.naswa.org/bitoolkit. The collection was developed to help state
    UI agencies apply the learnings of Behavioral Insights within their own states to address
    program compliance challenges and improve UI program integrity (see TEN No. 15-21).


•   UI National Integrity Academy. The Academy currently has five online certificate
    programs with more than 120 lessons available for state staff in the areas of Program
    Leadership, UI Operations Integrity, Fraud Investigations, Tax Integrity, and Data
    Analysis. The UI Integrity Center has added content to aid in mass hiring and
    onboarding of staff by including topics on fact-finding and claim adjudication strategies,
    re-designing the instructor-led Fraud Investigations course to a virtual instructor-led
    format, and developing state-specific, customized course bundles based on state need.

Increased State and Employer Use of SIDES

State implementation and employers’ use of SIDES should be an integral part of a state’s
integrity strategy (see TEN No. 12-16). SIDES is composed of Web Services for third-party
administrators (TPAs) and large employers and E-Response for smaller employers. States
should view SIDES as a critical part of their UI integrity efforts and should connect to and
build SIDES into their IAP as part of the SQSP.

•   SIDES Separation Information Exchange. The SIDES Separation Information
    Exchange supports timely and accurate information from employers and TPAs, which
    aids in reducing separation errors. As set out in UIPL No. 19-16, ETA has expectations
    for the overall state usage of SIDES (Web Services and E-Response) with a goal for
    states to receive employer responses through SIDES Web Services and SIDES E-
    Response for at least 50 percent of all UC initial claims processed and, separately, a goal
    of at least 35 percent of all UC initial claims processed through the SIDES E-Response.
    ETA encourages states to increase employer usage of SIDES for separation exchanges
    by pursuing the following strategies:

    o    Each state should strive to have all TPAs operating within the state to be live and
         using Web Services.

    o    States that have been successful in obtaining greater employer use have SIDES as
         the default method of exchanging information unless employers “opt-out” of this
         approach. These states have also used SIDES as the only electronic response
         system and have not used parallel/dual systems.

    o    States that have been successful in obtaining greater employer use have a single
         sign-on for SIDES and the state’s employer portal. The NASWA SIDES Team can
         provide technical assistance to states on implementing a single sign-on option if the
         state is not currently using a single sign-on for employers.

    o    States also should consider efforts to promote SIDES E-Response and to encourage
         employers who do not use TPAs to use SIDES, especially those employers who are
         frequent users of the UI program. In marketing SIDES, states are encouraged to use
         resources like the SIDES toolkit found at http://sidesitk.naswa.org/sides.

•   Monetary & Potential Charges Exchange. This exchange advises the employer/TPA
    of the wages used to calculate potential benefits payable to the claimant. It advises the
    employer of the potential charges applied to their state unemployment taxes if benefits
    are awarded, and they are found liable.


•   SIDES Additional Fact-Finding Exchange. This exchange permits the state to
    electronically submit unique questions to the employer/TPA while investigating a claim.
    The employer/TPA will electronically respond, providing the additional information.

•   SIDES Determinations & Decisions Exchange. This exchange permits the state to
    electronically transmit a non-monetary determination or an appeals decision to an
    employer/TPA. The employer/TPA can electronically respond, if necessary, with an
    appeal of a non-monetary determination or appeal of a lower-level appeal decision to the
    higher-level appeal authority using the standard national format.

•   SIDES Earnings Verification Exchange. States use various methods of fact-finding
    when verifying a claimant’s wages or earnings. Some states have manual operations
    using paper requests and responses. Other states have integrated various levels of
    automation, which may include electronic requests and/or electronic responses. Sixteen
    states have implemented the SIDES Earnings Verification application, which
    electronically sends wage verification requests to employers through a state-specific
    employer portal. The SIDES Earnings Verification exchange is recommended if a state
    does not have an automated web-based system for requesting employers to verify
    earnings. States are encouraged to implement the use of this SIDES exchange as part of
    their integrity efforts.

•   Benefit Charges Exchange: This exchange advises the employer/TPA of the amount
    of benefits charged to the employer for determining the employer’s state unemployment
    taxes based on the claimant’s eligibility and account liability.

Compliance with Work Search Activities.

As noted above, robust work search activities are a critical component of supporting
reemployment of UC claimants. Additional strategies for states to consider for mitigating
improper payments related to compliance with such activities is described earlier in this
UIPL.

Addressing Worker Misclassification

States should monitor their performance under the Effective Audit Measure (see UIPL No.
03-11) to determine whether they are effectively detecting and preventing worker
misclassification. States may deploy a wide array of strategies to address worker
misclassification. ETA encourages states to develop and implement strategies to address the
misclassification of workers and to include those strategies in the states’ SQSPs. ETA will
continue to identify state “best-promising practices” in this area and share them broadly.

Ensuring Accurate and Complete Filing and Reporting of ETA Required Reports

The impact of the pandemic on the UI systems has resulted in some states not timely filing
ETA required reports and/or inaccurately filing reports with zeros for data. States that have
not provided complete and accurate reports need to include in the SQSP Narrative


   information their plans, including timeframes and milestones, for addressing this issue, and
   ensuring appropriate reporting in FY 2023. States that have previously transmitted reports
   with zeros for data (that are not correct) must amend the reports to include accurate data.

   Additionally, states with inaccurate and/or incomplete reporting on all ETA 227 reports
   (Overpayment Detection and Recovery Activities), and the 902P report (Pandemic
   Unemployment Assistance), specifically Section C. Overpayment Activity and
   Administration (all activity EXCEPT for Identity Theft) and Section D. Overpayment Activity
   Related to Identity (ID) Theft, must report their plans to correct the reporting issues in the
   IAP.

   Government Performance and Results Act of 1993 (GPRA) UI Performance Measures
   (Federal Emphasis)

   GPRA requires a commitment from all Department programs to attain expressed goals and
   objectives. Achieving these objectives requires the combined efforts of the Federal and state
   partners.

   ETA recognizes that the COVID-19 pandemic has negatively impacted states’ program
   performance in FYs 2020, 2021, and 2022. As the impact of the pandemic subsides, it is
   important that states refocus their efforts on meeting the performance measures that ensure
   the UI program is achieving its mission-critical goals.

   In FY 2023, ETA will continue to work with states to rebuild performance with attention on
   the following GPRA goals for FY 2023, with targets that the system, as a whole, is expected
   to meet. States should continue to strive to reach or exceed these GPRA goals and targets.
   States must describe in the SQSP Narrative the steps they will take to reach and/or exceed
   these GPRA goals and targets. See
   https://oui.doleta.gov/unemploy/docs/GPRA_Summary_Report.asp for the FY 2023 GPRA
   goals and targets.

   •    Percent of Intrastate Payments Made Timely (Make Timely Benefit Payments)
        o Target: 87 percent of intrastate first payments for full weeks of UC will be made
            within 14/21 days from the week ending date of the first compensable week.

   •    Detection of Recoverable Overpayments (Detect Benefit Overpayments)
        o Target: Overpayments established at a rate that is at least 57.5 percent of the
            estimated detectable, recoverable overpayments.

   •    Percent of Employer Tax Liability Determinations Made Timely (Establish Tax
        Accounts Promptly)
        o Target: 90 percent of status determinations for new employers will be made within
            90 days of the end of the first quarter in which liability occurred.

5. Program Performance. The Department’s strategic approach to UI Performs is to focus
   efforts on improving the performance of states where performance is below minimum criteria
   while promoting overall excellence. To that end, states are expected to address performance


   that does not meet established criteria for the SQSP measurement period. The measurement
   period for the FY 2023 SQSP is April 1, 2021 – March 31, 2022, unless otherwise indicated
   in Attachment I.

6. UI Performance Criteria. Attachment I lists the performance criteria for the Core
   Measures, Secretary’s Standards, and other program criteria where Corrective Action Plans
   (CAPs) and/or Narratives may be expected if annual performance is not acceptable.

   a. Core Measures. Performance below the acceptable levels of performance (ALP) for
      Core Measures is expected to be addressed in a CAP unless otherwise indicated.

       Additional instructions for Core Measures are as follows:

       •   The Detection of Overpayments Measure. This measure is the percentage of
           detectable/recoverable overpayments estimated by the Benefit Accuracy
           Measurement (BAM) survey that was established for recovery through regular UI
           Benefit Payment Control (BPC) program operations. Any state reporting an
           overpayment detection rate below 50 percent is expected to address the deficiency in
           a CAP. In addition, because most states cannot cost-effectively detect and establish
           more than 90 percent of estimated overpayments, an upper limit of 95 percent has
           been established for monitoring purposes. States reporting ratios over 95 percent are
           expected to explain in the Narrative section the reasons for the higher-than-expected
           ratios. If an overpayment detection rate above 95 percent is the result of improper
           administration of BAM or BPC activities or misreporting of data on the ETA 227
           (Overpayment Detection and Recovery Activities) report, the state is expected to
           submit a CAP (for BAM/Overpayment Detection or BPC/Overpayment Detection).
           The CAP is to be designed to produce valid data for the Overpayment Detection
           Measure. The performance period for the BPC component is the three-year period
           ending March 31, 2022; the performance period for the BAM component is the three-
           year period ending September 30, 2021.

       •   Effective Audit Measure. The Effective Audit Measure, as noted in UIPL No. 03-11,
           is a blended measure of the following four factors: 1) Percentage of Contributory
           Employers Audited Annually; 2) Percentage of Total Wage Changed as a Result of
           Audit; 3) Percentage of Total Wages Audited; and 4) Average Number of
           Misclassifications Detected Per Audit. Each of the four factors has a minimum
           standard score that states must attain to pass the Effective Audit Measure, as well as
           an overall combined score that must be met. The measure also requires each state to
           direct additional emphasis to the factor(s) that state personnel deem important to the
           state. An additional two points must be earned among any of the four factors to attain
           the overall passing score of at least 7.0. Normally, a state that does not meet this
           measure based on Calendar Year (CY) 2021 data would be required to develop a
           CAP. However, since many states transferred audit staff to work in benefit functions
           during the COVID-19 pandemic, states will not need to develop CAPs if they failed
           the EAM based on CY 2021 data. Instead, states that failed the EAM must describe
           in the SQSP Narrative the steps they will take to pass the EAM.


•   Improper Payments Measure. The Improper Payments Measure is defined as UC
    overpaid plus UC underpaid divided by the total amount of UC paid. It is based on
    estimates from the results of the BAM survey of paid UC claims in the State UI,
    Unemployment Compensation for Federal Employees, and Unemployment
    Compensation for Ex-Servicemembers programs.

    The Payment Integrity Information Act (PIIA) of 2019, codified in 31 U.S.C. 3351 et
    seq., repealed and replaced the Improper Payments Information Act of 2002, and the
    subsequent statutory amendments (the Improper Payments Elimination and Recovery
    Act (IPERA) of 2010 and the Improper Payments Elimination and Recovery
    Improvement Act (IPERIA) of 2012. PIIA requires agencies to examine the risk of
    erroneous payments in all programs and activities they administer. This Federal law
    defines the term improper payment as:

    (A)    …any payment that should not have been made or that was made in an
          incorrect amount, including an overpayment or underpayment, under a
          statutory, contractual, administrative, or other legally applicable requirement;
          and

    (B) includes—(i) any payment to an ineligible recipient; (ii) any payment for an
        ineligible good or service; (iii) any duplicate payment; (iv) any payment for a
        good or service not received, except for those payments where authorized by
        law; and (v) any payment that does not account for credit for applicable
        discounts.

    PIIA requires Federal programs to report an annual improper payment rate. It also
    requires agencies to include all identified improper payments in the reported estimate,
    regardless of whether the improper payment in question has been or is being
    recovered (see UIPL No. 09-13, Change 1 for ETA’s approved improper payment
    rate computation methodology). Corrective actions and IAP root causes for FY 2023
    are based on ETA’s approved computation methodology.

    In accordance with PIIA, an ALP of less than 10 percent has been established for the
    improper payment measure. States are expected to maintain an improper payment
    rate of less than 10 percent for covered UC programs. This ALP is applicable to the
    2021 PIIA performance period (July 1, 2020 to June 30, 2021). A state failing to
    meet the ALP for the 2021 PIIA performance period will be expected to develop a
    CAP as part of the FY 2023 SQSP.

•   UI Overpayment Recovery Measure. As explained in UIPL No. 09-13, the recovery
    rate is “the amount of improper overpayments recovered divided by the amount of
    improper overpayments identified.” The ALP for the recovery rate measure is 68
    percent for the 2021 PIIA performance period. The Department will compute future
    recovery targets based on the most recent recovery and other performance data
    available.

    The performance period will be based on data from the ETA 227, Overpayment
    Detection and Recovery Activity (Regular), and ETA 227, Overpayment Detection


         and Recovery Activity (Emergency Unemployment Compensation) (EUC), for the
         PIIA 2021 performance period (July 1, 2020 to June 30, 2021). Pursuant to the UI
         Reports Handbook (ET Handbook No. 401, 5th edition), the June quarter ETA 227
         reports are due August 1 each year. A state failing to meet the ALP for the 2021
         PIIA performance period will be expected to develop a CAP as part of the FY 2023
         SQSP.

b.   Secretary’s Standards

     A state experiencing performance below the criteria for the Secretary’s Standards
     established in regulation at 20 CFR Parts 640 and 650 are required to address the
     performance issues in a CAP. The Secretary’s Standards are listed in Attachment I.

c.   UI Programs

     States must address the following UI Programs as described below:

     •   State Directory of New Hires (SDNH)/National Directory of New Hires (NDNH)

         State BAM operations that, based on the BAM Administrative Determination, are
         not compliant with the NDNH matching requirements in ET Handbook No. 395, 5th
         Edition, chapter VI, UIPL No. 03-07, and UIPL No. 03-07, Change 1, are expected
         to be addressed in a CAP for FY 2023.

     •   Benefit Accuracy Measurement (BAM)

         State BAM operations or operational components that, based on the BAM
         Administrative Determination, are not compliant with investigative and/or method
         and procedure requirements established in ET Handbook No. 395, 5th Edition, and
         through findings established through ET Handbook No. 396, 4th Edition monitoring
         reviews (based on the annual determination letter issued on or before May 1, 2022),
         are expected to be addressed in a CAP. This includes paid and denied claim
         population variances outside established control limits.

     •   Tax Performance System (TPS)

         To ensure that UI tax operations are in compliance with Federal reporting and
         oversight requirements, a state’s failure to conduct one or more TPS sample reviews
         will be subject to a CAP. Additionally, a tax function that is not sampled will be
         included in the number of total failing functions as measured by Tax Quality Part A
         (no more than three tax functions may fail TPS review) and Part B (a tax function
         cannot fail for three consecutive years). Exceptions include universes that are too
         small to support a sample (“S”), an Experience Rate sample that was not scheduled
         for review during the performance year (“E”), or the granting of a temporary waiver
         by the RO (“W”). Program Review Findings Charts should be noted accordingly.

     •   Data Validation (DV)


       The normal deadline for submitting DV results is June 10 of a performance year.
       Due to the ongoing COVID-19 pandemic, that deadline has been extended to
       August 10, 2022. DV items that fail to pass validation, or that are due but not
       submitted, are expected to be addressed in the state’s FY 2023 SQSP. Non-
       submitted items include failure to certify that Module 3 of the DV Benefits and Tax
       Handbooks are up-to-date during the April 1 – June 10, 2022, certification window.

       Any DV items due for Validation Year (VY) 2022 that did not pass or were not
       submitted by the August 10, 2022, deadline, are expected to be addressed in a CAP
       for FY 2023.

       ROs will monitor states every three years on cycles coinciding with the Data
       Validation Years. They will assess the accuracy of the states’ DV results considered
       passing or not due as of the time of the monitoring review to verify that the states are
       properly implementing the DV program. DV items submitted as passing but which a
       monitoring review determined to have failed must also be addressed in the SQSP.
       All subsequent SQSP cycles will address items changed from pass to fail in the
       previous year’s monitoring review.

d. UI Program Integrity and the IAP

   Beginning with the FY 2023 SQSP submission, states will use the new Word document
   template to develop their IAPs. The IAP will no longer be included in the Excel CAP
   Workbook. The new template provides states with a format that is conducive for
   developing comprehensive, detailed, and actionable IAP. The IAP template will guide
   states in developing their IAPs and allow states more flexibility to clearly articulate their
   integrity plans and actions, while also ensuring all key IAP topics are addressed.

   States are expected to report their planned activities to prevent, detect, reduce, and
   recover fraud and UI improper payments in their IAPs, which are submitted each year as
   part of the annual SQSP submission. The purpose of the IAP is for the state to provide a
   comprehensive and detailed plan outlining the agency's UI integrity strategies, including
   plans and actions to combat fraud, reduce improper payments, and improve the recovery
   of overpayments.

   States are expected to address each of the following topics, including specific National
   Priorities and additional integrity strategies as outlined below, as part of IAPs for the FY
   2023 SQSP submission.

   •   (Topic #1) - The specific topics areas identified under the “Combatting Fraud;
       Strengthening Identity Verification; Improving Prevention, Detection, and Recovery
       of Improper and Fraudulent Overpayments; and Reducing the UI Improper Payment
       Rate” National Priority outlined in Section 4 of this UIPL.

       o State use of tools, services, strategies, process improvements, and/or procedural
         changes adopted by the state to combat fraud, verify identities, and enhance
         recovery efforts. States are expected to identify which tools, solutions, and
         service provider(s) are used in the state’s fraud management operations, including


       but not limited, to the following areas: data analysis, identity verification, fraud
       prevention and detection, and cybersecurity.

    o State use of UI Integrity Center resources, with a particular focus on state
      connection to the IDH and use of its datasets to cross-match UC claims and aid in
      the prevention and detection of fraud.

    o State use of required and recommended cross-matches and overpayment recovery
      activities as outlined in UIPL No. 23-20, including any additional effective cross-
      matching and recovery activities and identified best practices.

    o State use and employer participation in SIDES.

    o State strategies designed to facilitate claimants’ compliance with state work
      search requirements while also supporting their reemployment such as adoption of
      the work search requirements in the Model Work Search Legislation.

•   (Topic #2) - State plans and actions to address the state's top three improper payment
    root causes in 2021 for PIIA purposes.

•   (Topic #3) - State coordination and collaboration with DOL-OIG and other state and
    Federal law enforcement agencies to investigate and prosecute UI fraud.

•   (Topic #4) - State plans to strengthen program integrity in UI tax operations,
    including current activities and plans to identify and prevent worker misclassification,
    State Unemployment Tax Act Dumping, and Fictious Employer schemes, and
    development/use of effective employer audit strategies (i.e., use of remote audits).

•   (Topic #5) - State plans and actions to strengthen internal security and ensure that all
    appropriate internal controls and processes are in place and are adequate to assess
    internal risks and threats, ensure program integrity, and minimize program
    vulnerabilities (see UIPL No. 14-17).

•   (Topic #6) - State plans and actions to balance the need to identify and prevent
    fraudulent activity while ensuring that eligible individuals with legitimate claims get
    the benefits they are entitled to when they are due.

•   (Topic #7) - If the state has not provided complete and accurate overpayment
    reporting on the ETA 227 reports (Overpayment Detection and Recovery Activities),
    and the ETA 902P report (Pandemic Unemployment Assistance Activities),
    specifically Section C. Overpayment Activity and Administration (all activity
    EXCEPT for Identity Theft) and Section D. Overpayment Activity Related to Identity
    (ID) Theft of the ETA 902P report, the state must provide information on plans for
    improvement, including timeframes and milestones, for addressing the issue and
    ensuring complete, accurate, and timely reporting in FY 2023.

In FY 2022, ETA began requiring states to provide a six-month update to the IAP,
covering the first two quarters of the FY (October – March) when submitting the SQSP


   quarterly update for the quarter ending March 31st. The six-month update to the IAP
   continues to be required for FY 2023, although the IAP update will not be required to be
   developed using the Excel CAP Workbook. States will develop the six-month IAP
   update in the IAP Word document template and submit it at the same time the state
   submits the SQSP quarterly update for the quarter ending March 31st. The purpose of the
   six-month update is for a state to provide a progress report on all integrity strategies
   outlined in the IAP and must include details on any new fraud prevention strategies,
   solutions, and/or activities; changes to existing integrity strategies; plan or strategy delays
   and/or challenges in implementing the IAP; positive outcomes; and identified successes.

   ETA will continue to provide technical assistance to states to support their integrity
   activities through guidance, webinars, individual state technical assistance, and in
   partnership with the UI Integrity Center.

e. Other UI Performance

   States are expected to address the following performance deficiencies in the SQSP
   Narrative, unless otherwise indicated.

   •   Failure to meet reporting requirements.

   •   Invalid recording of the Issue Detection Date (IDD) and Determination Date (DD).
       The validity of the UI Performs nonmonetary determination timeliness measure
       depends on the accuracy of the state’s IDD and DD data. IDD and DD data are
       considered accurate if dates were correct in at least 95 percent of the nonmonetary
       determinations evaluated in the quarterly quality samples (obtained from the ETA
       9056 report). Since the accuracy of IDD and DD data is based on sample results,
       sampling variation will be taken into account in setting the percentage below which a
       state’s data will be considered inaccurate. States with invalid IDD or DD data are
       expected to address the steps they will take to record the IDD and DD correctly in the
       SQSP Narrative.

f. Future Performance Requirements

   In FY 2021, ETA published UIPL No. 07-21 that announced a new reemployment core
   measure: Reemployment rate in the 2nd Quarter after Program Exit for RESEA
   Participants. This new core measure is designed to focus on RESEA program
   performance, given that the RESEA program is now permanently authorized within the
   context of the broader workforce development system. The measure aligns with the
   WIOA primary indicators of performance and will utilize data that states already report
   for the Employment Service program and will assist ETA and states in assessing state
   performance related to the employment outcomes of RESEA participants.

   Performance data for FY 2020 and FY 2021 will be used to review state performance
   trends and to establish baseline state RESEA performance. States that do not meet
   performance criteria for both of these performance periods will not be expected to submit
   CAPs for FY 2023 SQSPs.


        UIPL No. 07-21 also announced two new program performance measures that are meant
        to assist states in managing reemployment performance, but are not core measures and do
        not have associated acceptable levels of performance.

7. Planning Requirements for FY 2023.

   SQSP Submittal Cycle

   The SQSP process provides a 24-month window for states to adequately plan and implement
   performance improvement efforts. The process provides for two types of submittals: a
   Formal two-year (Biennial) plan and an Alternate Year plan. Descriptions of the Biennial
   and Alternate Year SQSP submittals, significant activities, and dates relating to the submittal
   and approval of the SQSP are outlined in 336, ET Handbook No. 336, 18th Edition, Change 4
   and this UIPL. This year (FY 2023), all states will submit a Biennial SQSP.

   SQSP Preparation

   States must use the Excel CAP Workbook to develop their CAPs for the SQSP submissions.
   States must also use the Excel CAP Workbook for reporting updates to specific CAP
   milestones and its performance each quarter. States must also use the new IAP template to
   develop their IAP and provide the IAP updates. The RO will provide states with the Excel
   Workbook and IAP template with specific instructions relevant to this Biennial SQSP
   submittal.

   SQSP Assurances and Approval

   By signing the SQSP Signature Page, a state certifies that it will comply with the assurances
   listed in ET Handbook No. 336, 18th Edition, Change 4, and will institute plans or measures
   to comply with the requirements for each of the assurances.

    •   Assurance of Disaster Unemployment Assistance (DUA)

        Beginning with the FY 2022 SQSP, each state must assure that it will conduct annual
        training for its DUA staff and develop and maintain a Standard Operating Procedures
        manual for DUA. States are encouraged to use the DUA training modules available on
        the NASWA learning platform at https://www.naswa.org/learning.

        Each state must:

        o Indicate that it has conducted training and provide the date of the training; and

        o Indicate that it has developed and/or maintained DUA Standard Operating
          Procedures for use during a major disaster declaration.

        States may contact their RO for a copy of a DUA Standard Operating Procedure
        template. See TEN No. 13-21 for additional information.


8. Tiger Team Grant Funds and Consultative Assessments. In the SQSP Narrative
   Response section, states must detail their status as it relates to the opportunity for grant
   opportunities following a consultative assessment for fraud prevention and detection,
   promoting equitable access, and ensuring the timely payment of benefits, including backlog
   reductions, for all UC programs, as announced including backlog reductions, for all UC
   programs, as announced in UIPL No. 02-22 (with an amended deadline under UIPL No. 02-
   22 Change 1).

   •   If your state has not done so yet but plans to express interest for this consultative
       assessment prior to September 30, 2022, please provide the anticipated timeframe.

   •   If your state has either expressed interest for this consultative assessment or has already
       been through the consultative assessment, please provide an update on the status of that
       engagement. In addition, if your state is actively implementing projects resulting from
       the consultative assessment, please provide in detail the progress on those activities, as
       well as any challenges or barriers your state is facing.

   •   If your state has not yet expressed interest for this consultative assessment and has no
       plans to do so by the September 30, 2022, deadline, please detail why. Please include
       your state’s current efforts in process improvement, technology improvement, and
       operations enhancements in the areas of fraud prevention and detection, promoting
       equitable access, and ensuring the timely payment of benefits, including backlog
       reductions, for all UC programs.

9. Waiving Recovery of Overpayments, where Appropriate. As states are resolving
   backlogs, they may identify situations where individuals received benefits to which they
   were not entitled (i.e., establish an overpayment). As noted in UIPL No. 20-21, Change 1,
   seeking recovery of overpayments from individuals who did not commit fraud and were
   without fault in receiving the overpayment, especially in light of the economic effects of the
   pandemic, creates an extraordinary hardship on working families. The authority to waive
   recovery of overpayments under the regular UC program is a matter of state law. When
   establishing overpayments under the temporary CARES Act UC programs, the Department
   strongly encourages states to exercise the authority to waive recovery when both conditions
   set forth in the CARES Act, as amended, are satisfied: (1) payment was done without fault
   on the part of the individual; and (2) repayment would be contrary to equity and good
   conscience. We remind states that to consider a waiver of the recovery of an overpayment,
   the state must first establish an overpayment and under no circumstances may a state waive
   recovery activities for a fraudulent overpayment.

   Within the context of the CARES Act UC programs, states are permitted to use blanket
   waivers under the seven scenarios described in Attachment I to UIPL No. 20-21, Change 1.
   States may also submit requests for additional blanket waiver scenarios within the context of
   the CARES Act UC programs by submitting Attachment II to UIPL No. 20-21, Change 1.
   These approved blanket waiver scenarios permit a state, under the limited authorized
   circumstances, to process the waiver of recovery for individual overpayments that do not
   require additional fact-finding or submission of individual requests. These scenarios also
   permit the state to process the waiver of recovery for multiple overpayments meeting one of
   the approved scenarios simultaneously based on a single set of facts. If overpayments


   covered by the seven approved scenarios were processed individually, it could result in the
   same amount of overpayments not being recovered (i.e., recovery still being waived), but at a
   greater cost and inefficiency to the state because of the workload generated from processing
   individual waivers. Overpayments occurring outside of the scope of the approved scenarios
   may still be considered for waiving repayment on an individual case-by-case basis to ensure
   the two conditions described in the preceding paragraph are satisfied.

10. Coordination with DOL-OIG. States must refer allegations which they reasonably believe
    constitute UC fraud, waste, abuse, mismanagement, or misconduct to the DOL-OIG. States
    are also required to disclose confidential UC information related to the CARES Act, as
    amended, to the DOL-OIG for the purpose of UC fraud investigations and audits for the
    entire pandemic relief period (see UIPL No. 04-17, Change 1). Additionally, as a condition
    of receiving funding under UIPL No. 22-21, the 50 participating states are required to
    disclose all confidential UC information to DOL-OIG for purposes of both investigating
    fraud and performing audits through weeks of unemployment ending before December 31,
    2023.

11. WIOA Combined State Plans. WIOA provides the option for states to submit a Combined
    State Plan that includes program plans for mandatory one-stop partners and other programs.
    Given that the UI program is a mandatory one-stop partner under WIOA, states have the
    option of including the UI program as part of the Combined State Plan. However, each state
    must participate in the UI Performs SQSP process whether or not the state decides to include
    the UI program as part of its Combined State Plan.

   States electing to include UI in a Combined State Plan must incorporate the SQSP in its
   entirety into the Combined State Plan through the Combined State Plan process via the online
   WIOA State Plan Portal at https://wioaplans.ed.gov/. Those states must incorporate the FY
   2023 SQSP into the Combined State Plan upon ETA’s approval of the SQSP, but no later
   than October 31, 2022.

12. UI Technical Assistance Resources. The following resources provide states with
    information and support for UI program activities.

     a. Staff from ETA’s Regional Offices and the Office of Unemployment Insurance.

     b. UI Information Technology Support Center.

         ETA created ITSC in 1994 through a cooperative agreement with the State of Maryland
         to develop products and services and to support state UI agencies in the use of IT for
         efficient administration of the UI program. Since 2009, NASWA’s CESER has
         operated the ITSC. ITSC’s activities involve providing information, technical
         assistance, products, and services to states or state consortia in support of the
         modernization of IT systems used to administer the UI program.

     c. UI Integrity Center.

         In FY 2012, ETA created the UI Integrity Center of Excellence (UI Integrity Center) to
         support the needs of the fifty-three State Workforce Agencies in implementing


         strategies to ensure program integrity to prevent, detect, and recover improper
         payments, and to reduce fraud in the UC programs. NASWA’s CESER operates the UI
         Integrity Center through a cooperative agreement with ETA.

     d. Tiger Team Consultations.

         Under the direction of ARPA, the Department has made available to states access to
         consultative services through vendor supported “Tiger Team” state assessments. These
         consultations focus on operations, communications, process flows, and technologies
         that support timeliness of UC payments, reduction of backlogs, equity of benefits
         access and awareness, and fraud prevention and detection. States have the opportunity
         to work with the Tiger Teams to develop customized recommendations for their states,
         focused on quick wins, as well as access to funding to implement those
         recommendations.

     e. Fraud and Equity Funded Efforts.

         ETA is committed to supporting states by providing funding and investing in the most
         innovative and successful tools, activities, and resources to combat fraud and promote
         equitable access in UC programs. Funding opportunities have been provided to states
         under UIPLs No. 28-20; 28-20, Change 1; 28-20, Change 2; 22-21; and 23-21.

13. Funding Period. The Department’s proposed FY 2023 appropriation language for State UI
    and Employment Service Operations allows for obligation of UI allocations by states through
    December 31, 2023, with 90 additional days to liquidate the obligations and complete the
    expenditure of funds. Under this proposed language (which mirrors language that all recent-
    year appropriation acts have contained), states would be able to obligate FY 2023 UI funds
    through September 30, 2025, if such obligations are for automation, competitive grants
    awarded to states for improved operations, or for conducting in-person reemployment and
    eligibility assessments and improper payment reviews, and providing reemployment services
    and referrals to training, as appropriate. The grant management resources and information
    including grant terms and conditions are available at
    https://www.doleta.gov/grants/resources.cfm. Please note that FY 2023 grant terms and
    conditions are not available at this time. This information will be provided through ETA’s
    ROs at a later date and also posted at the webpage indicated above.

14. Data Availability. ETA’s ROs will provide states with data showing their performance
    measured against the Core Measures, Secretary’s Standards, and other information relevant to
    the SQSP (e.g., reporting deficiencies).


15. SQSP Submittal Deadlines. Each ETA RO will set a date and inform states of the deadline
    to submit their SQSPs for FY 2023.


16. Electronic Submission of the SQSP. States must submit the SQSPs electronically and
    should contact their RO SQSP Coordinators before submittal to coordinate specific details.
    Standard forms required as part of the budget reporting process (Chapter II of ET Handbook


    No. 336, 18th Edition, Change 4) are available in PDF and may be downloaded from the OMB
    website at: https://www.grants.gov/web/grants/forms/sf-424-family.html#sortby=1.

    States may submit the SQSP Signature Page electronically if the state law permits. States
    that do not submit the signature page electronically (which includes by fax or scan) must
    submit the signature page by mail by the deadline set by the RO.

17. Inquiries. Please direct inquiries to the appropriate ETA RO.

18. References.

   •   Social Security Act (SSA), sections 303(a)(1) and 306 (42 U.S.C. 503(a)(1) and 506);
   •   Government Performance and Results Act (GPRA) of 1993, Pub. L. 103-62, as amended
       by GPRA Modernization Act of 2010, Pub. L. 111-352;
   •   Payment Integrity Information Act of 2019 (PIIA), Pub. L. 116-117;
   •   Improper Payments Elimination and Recovery Act of 2010 (IPERA), Pub. L. 111-204
       (31 U.S.C. 3301 note and 3321 note);
   •   Improper Payments Elimination and Recovery Improvement Act of 2012 (IPERIA), Pub.
       L. 112-248;
   •   WIOA, Pub. L. 113-128, 29 USC 3101 note and Title I;
   •   Wagner-Peyser Act, 29 U.S.C. Sec. 49 et seq., as amended by Title III of WIOA;
   •   Trade Act of 1974, Pub. L. 93-618, as amended;
   •   The Bipartisan Budget Act of 2013, Pub. L. 113-67;
   •   Bipartisan Budget Act of 2018, Pub. L. 115-123;
   •   Departments of Labor, Health and Human Services, and Education, and Related Agencies
       Appropriations Act, 2020, Pub. L. 116-94;
   •   Consolidated Appropriations Act, 2021, including Division N, Title II, Subtitle A, the
       Continued Assistance for Unemployed Workers Act of 2020;
   •   American Rescue Plan Act of 2021, Pub. L. 117-2;
   •   Executive Order 13985 of January 20, 2021; 86 FR 7009, page 7009-7013,
       https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-
       equity-and-support-for-underserved-communities-through-the-federal-government;
   •   20 CFR Parts 601, 640, 650, 652, and 660;
   •   20 CFR Part 200, Subpart F;
   •   The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
       Federal Awards at 2 CFR Parts 200 and 2900;
   •   UIPL No. 10-22, Fiscal Year (FY) 2022 Funding Allotments and Operating Guidance for
       Unemployment Insurance (UI) Reemployment Services and Eligibility Assessment
       (RESEA) Grants, issued January 21, 2022,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9998;
   •   UIPL No. 02-22, Change 1, Extension of Time for States to Express Interest in the Grant
       Opportunity Announced in Unemployment Insurance Program Letter (UIPL) No. 2-22 to
       Support States Following a Consultative Assessment for Fraud Detection and Prevention,
       Promoting Equitable Access, and Ensuring the Timely Payment of Benefits, including


    Backlog Reduction, for all Unemployment Compensation (UC) Programs, issued
    February 16, 2022, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8539;
•   UIPL No. 02-22, Grant Opportunity to Support States Following a Consultative
    Assessment for Fraud Detection and Prevention, Promoting Equitable Access, and
    Ensuring the Timely Payment of Benefits, including Backlog Reduction, for all
    Unemployment Compensation (UC) Programs, issued November 2, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6683;
•   UIPL No. 01-22, Announcing the Availability of an Incarceration Data Exchange and
    Instructions to Access the Data Exchange between the Unemployment Insurance (UI)
    Interstate Connection Network (ICON) and the Social Security Administration (SSA)
    Prisoner Update Processing System (PUPS), issued October 29, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4115;
•   UIPL No. 23-21, Grant Opportunity for Promoting Equitable Access to Unemployment
    Compensation (UC) Programs, issued August 17, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7400;
•   UIPL No. 22-21, Grant Opportunity to Support States with Fraud Detection and
    Prevention, Including Identity Verification and Overpayment Recovery Activities, in All
    Unemployment Compensation (UC) Programs, issued August 11, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?docn=4240;
•   UIPL No. 20-21, Change 1, Additional State Instructions for Processing Waivers of
    Recovery of Overpayments under the Coronavirus Aid, Relief, and Economic Security
    (CARES) Act, as Amended, issued February 7, 2022,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8527;
•   UIPL No. 20-21, State Instructions for Assessing Fraud Penalties and Processing
    Overpayment Waivers under the Coronavirus Aid, Relief, and Economic Security
    (CARES) Act, as Amended, issued May 5, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6830;
•   UIPL No. 13-21, Fiscal Year (FY) 2021 Funding Allotments and Operating Guidance for
    Unemployment Insurance (UI) Reemployment Services and Eligibility Assessments
    (RESEA) Grants, issued January 19, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6686;
•   UIPL No. 07-21, Performance Measures for Reemployment Services and Eligibility
    Assessments (RESEA) and Unemployment Insurance (UI) participants, issued December
    17, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3854;
•   UIPL No. 28-20, Change 2, Additional Funding to Assist with Strengthening Fraud
    Detection and Prevention Efforts and the Recovery of Overpayments in the Pandemic
    Unemployment Assistance (PUA) and Pandemic Emergency Unemployment
    Compensation (PEUC) Programs, as well as Guidance on Processes for Combatting
    Identity Fraud, issued August 11, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?docn=7207;
•   UIPL No. 28-20, Change 1, Additional Funding for Identity Verification or Verification
    of Pandemic Unemployment Assistance (PUA) Claimants and Funding to Assist with
    Efforts to Prevent and Detect Fraud and Identity Theft as well as Recover Fraud
    Overpayments in the PUA and Pandemic Emergency Unemployment Compensation
    (PEUC) Programs, issued January 15, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9897;


•   UIPL No. 28-20, Addressing Fraud in the Unemployment Insurance (UI) System and
    Providing States with Funding to Assist with Efforts to Prevent and Detect Fraud and
    Identity Theft and Recover Fraud Overpayments in the Pandemic Unemployment
    Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC)
    Programs, issued August 31, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8044;
•   UIPL No. 23-20, Program Integrity for the Unemployment Insurance (UI) Program and
    the UI Programs Authorized by the Coronavirus Aid, Relief, and Economic Security
    (CARES) Act of 2020 – Federal Pandemic Unemployment Compensation (FPUC),
    Pandemic Unemployment Assistance (PUA), and Pandemic Emergency Unemployment
    Compensation (PEUC) Programs, issued May 11, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4621;
•   UIPL No. 22-20, Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 –
    Short-Time Compensation (STC) Program Grants, issued May 10, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6220;
•   UIPL No. 09-20, Unemployment Insurance (UI) State Quality Service Plan (SQSP)
    Submittal Schedule, issued February 6, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7801;
•   UIPL No. 08-20, Fiscal Year (FY) 2020 Funding Allotments and Operating Guidance for
    Unemployment Insurance Reemployment Services and Eligibility Assessments (RESEA)
    Grants, issued January 30, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4214;
•   UIPL No. 13-19, National Directory of New Hires (NDNH) and State Directory of New
    Hires (SDNH) Guidance and Best Practices, issued June 7, 2019,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5373;
•   UIPL No. 07-19, Fiscal Year (FY) 2019 Funding Allotments and Operating Guidance for
    Unemployment Insurance (UI) Reemployment Services and Eligibility Assessment
    (RESEA) Grants, issued January 11, 2019,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8397;
•   UIPL No. 18-17, Unemployment Insurance Benefits Operations Self-Assessment Tool,
    issued July 28, 2017, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9282;
•   UIPL No. 14-17, States' Responsibilities for Internal Security in the Unemployment
    Insurance Program, issued March 23, 20217,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5496;
•   UIPL No. 04-17, Change 1, Requirement for States to Refer Allegations of
    Unemployment Compensation (UC) Fraud, Waste, Abuse, Mismanagement, or
    Misconduct to the Department of Labor's (Department) Office of Inspector General's
    (DOL-OIG) and to Disclose Information Related to the Coronavirus Aid, Relief, and
    Economic Security (CARES) Act to DOL-OIG for Purposes of UC Fraud Investigation
    and Audits, issued August 3, 2021,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5817;
•   UIPL No. 03-17, Change 1, Fiscal Year (FY) 2017 Unemployment Insurance (UI)
    Reemployment Services and Eligibility Assessment (RESEA) Grants, issued September
    22, 2017, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6557;


•   UIPL No. 03-17, Fiscal Year (FY)2017 Unemployment Insurance (UI) Reemployment
    Services and Eligibility Assessment (RESEA) Grant, issued December 8, 2016,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5218;
•   UIPL No. 19-16, Unemployment Insurance (UI) Supplemental Funding Opportunity for
    Improved Operations, issued August 2, 2016,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6982;
•   UIPL No. 17-16, Reengineering Unemployment Insurance (UI) Benefits Program
    Accountability Process: High Priority Designation of States with Sustained Poor
    Performance, issued July 13, 2016,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3910;
•   UIPL No. 02-16, Change 1, State Responsibilities for Ensuring Access to Unemployment
    Insurance Benefits, Services, and Information, issued May 11, 2020,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5491;
•   UIPL No. 02-16, State Responsibilities for Ensuring Access to Unemployment Insurance
    Benefits, issued October 1, 2015,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4233;
•   UIPL No. 01-16, Change 1, Federal Requirements to Protect Claimant Rights in State
    Unemployment Compensation Overpayment Prevention and Recovery Procedures –
    Questions and Answers, issued January 13, 2017,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7706;
•   UIPL No. 01-16, Federal Requirements to Protect Individual Rights in State
    Unemployment Compensation Overpayment Prevention and Recovery Procedures, issued
    October 1, 2015, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5763;
•   UIPL No. 17-14, Revised Employment and Training (ET) Handbook No. 336, 18th
    Edition: “Unemployment Insurance (UI) State Quality Service Plan (SQSP) Planning
    and Reporting Guidelines”, issued July 7, 2014,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9690;
•   UIPL No, 09-13, Change 1, Integrity Performance Measure for Unemployment
    Insurance, issued January 27, 2015,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7422;
•   UIPL No. 09-13, Integrity Performance Measures for Unemployment Insurance (UI),
    issued January 29, 2013, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8922;
•   UIPL No. 05-13, Work Search and Overpayment Offset Provisions Added to Permanent
    Federal Unemployment Compensation Law by Title II, Subtitle A of the Middle Class Tax
    Relief and Job Creation Act of 2012, issued January 20, 2013,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3698;
•   UIPL No. 08-12, Change 1, Consolidation of the Employment and Training
    Administration (ETA) 9000 and ETA 227 Reports, issued July 27, 2015,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9079;
•   UIPL No. 08-12, Consolidation of the Employment and Training Administration (ETA)
    9000 and ETA 227 Reports, issued January 11, 2012,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3311;
•   UIPL No. 34-11, Change 2, Benefit Year Earnings (BYE) Unemployment Insurance (UI)
    Integrity Performance Measure, issued July 20, 2016,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3784;


•   UIPL No. 34-11, Change 1, Benefit Year Earnings (BYE) Unemployment Insurance (UI)
    Integrity Performance Measure, issued May 28, 2014,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3116;
•   UIPL No. 34-11, Performance Measure for Unemployment Insurance (UI) Integrity,
    issued September 28, 2011, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3086;
•   UIPL No. 03-11, Implementation of the Effective Audit Measure, issued December 30,
    2010, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2971;
•   UIPL No. 22-10, Selecting and Monitoring At-Risk States for Continuous Improvement
    and Compliance with First Payment Timeliness and First Level Appeals Promptness,
    issued April 23, 2010, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2890;
•   UIPL No. 17-08, The Unemployment Insurance (UI) Reemployment Rate Core Measure,
    issued May 14, 2008, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2636;
•   UIPL No. 03-07, Change 1, Use of National Directory of New Hires (NDNH) in
    Unemployment Insurance (UI) Benefit Accuracy Measurement (BAM) Audits, issued
    February 27, 2008, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2597;
•   UIPL No. 03-07, Use of National Directory of New Hires (NDNH) in Unemployment
    Insurance (UI) Benefit Accuracy Measurement (BAM) Audits, October 31, 2006,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2280;
•   UIPL No. 22-05, Change 2, Unemployment Insurance Data Validation (UI DV) Program
    Activities during Validation Years (VY) 2008 and Beyond, issued March 14, 2008, https://
    wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2611;
•   UIPL No. 22-05, Change 1, Unemployment Insurance Data Validation (UI DV) Program
    Activities During Validation Years (VY) 2007 and 2008 and Policy Clarification, issued
    July 21, 2006, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2245;
•   UIPL No. 22-05, Unemployment Insurance Data Validation (UI DV) Program Software
    and Policy Guidance, issued April 28, 2005,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2074;
•   UIPL No. 14-05, Change 3, Acceptable Levels of Performance (ALP) Criteria for
    Appeals Case Aging Measures and Nonmonetary Determination Quality Review, issued
    April 16, 2008, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2625;
•   UIPL No. 14-05, Change 2, Performance Criteria for Appeals Case Aging Measures and
    the Starting Date for Measuring Nonmonetary Determinations Time Lapse, issued
    December 13, 2006, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2287;
•   UIPL No. 14-05, Change 1, Performance Criterion for the Overpayment Detection
    Measure; Clarification of Appeals Timeliness Measures; and Implementation of Tax
    Quality Measure Corrective Action Plans (CAPs), issued October 12, 2005,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2157;
•   UIPL No. 14-05, Changes to UI Performs, issued February 18, 2005,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=1683;
•   TEGL No. 05-21, Fiscal Year (FY) 2022 Funding Allotments and Operating Guidance
    for Unemployment Insurance (UI) Reemployment Services and Eligibility Assessment
    (RESEA) Grants, issued January 21, 2022,
    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3134;


   •   TEN No. 24-21, Encouragement for States to Use the Integrity Data Hub (IDH)
       available through the Unemployment Insurance (UI) Integrity Center, issued May 5,
       2022, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8412;
   •   TEN No. 15-21, Announcing the National Association of State Workforce Agencies
       (NASWA) Unemployment Insurance (UI) Integrity Center’s Behavioral Insights Toolkit,
       issued November 17, 2021, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6799;
   •   TEN No. 13-21, State Quality Service Plan Assurances Required for Disaster
       Unemployment Assistance, issued October 19, 2021,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=5710;
   •   TEN No. 17-19, Model Unemployment Insurance State Work Search Legislation, issued
       February 10, 2020, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4227;
   •   TEN No. 12-16, Unemployment Insurance (UI) State Information Data Exchange System
       (SIDES), issued September 27, 2016,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=8026;
   •   TEN No. 03-15, Reengineering Unemployment Insurance (UI) Benefits Program
       Accountability Processes: Update on Implementation Progress and State Impacts, issued
       July 27, 2015, https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=6837;
   •   TEN No. 08-14, Reengineering Unemployment Insurance (UI) Benefits Program
       Accountability Processes, September 2, 2014,
       https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4692;
   •   ET Handbook No. 336, Unemployment Insurance (UI) State Quality Service Plan (SQSP)
       Planning and Reporting Guidelines, 18th Edition, Change 4 (March 2019);
   •   ET Handbook No. 361, Unemployment Insurance Data Validation Handbook, Benefits
       (September 2019);
   •   ET Handbook No. 361, Unemployment Insurance Data Validation Handbook, Tax
       (September 2019);
   •   ET Handbook No. 395, Benefit Accuracy Measurement State Operations Handbook, 5th
       Edition (November 2009);
   •   ET Handbook No. 396, Unemployment Insurance Benefit Accuracy Measurement
       Monitoring Handbook, 4th Edition (November 2009); and
   •   ET Handbook No. 401, 5th Edition, UI Report Handbook No. 401 (July 2017).

18. Attachment.

   •   Attachment I: Measures/Programs to be Addressed in the Fiscal Year (FY) 2023 State
       Quality Service Plan (SQSP).


                                                                                             Attachment I

                       Measures/Programs to be Addressed in the Fiscal Year (FY) 2023
                                     State Quality Service Plan (SQSP)


                                                                                                 FY 2023
       Core Measures                  Measurement Period                   Criteria
                                                                                               Requirement

First Payment Promptness           Apr 1, 2021 – Mar 31, 2022                87%                   CAP
Nonmonetary Determination                                                  80%
                                   Apr 1, 2021 – Mar 31, 2022                                      CAP
Time Lapse                                                            (combined score)
Nonmonetary Determination
                                   Apr 1, 2021 – Mar 31, 2022                75%                   CAP
Quality – Nonseparations
Nonmonetary Determination
                                   Apr 1, 2021 – Mar 31, 2022                75%                   CAP
Quality – Separations
                                   BPC
                                                                             50%                   CAP
                                   Apr 1, 2019 – Mar 31, 2022

                                   BAM                                       95%                 Narrative
Detection of Overpayments
                                   Oct. 1, 2018 – Sep. 30, 2021
                                   If rate over 95% is a result of
                                   improper administration of                95%                   CAP
                                   BAM and/or BPC
Average Age of Pending Lower
                                   Apr 1, 2021 – Mar 31, 2022              30 days                 CAP
Authority Appeals
Average Age of Pending Higher
                                   Apr 1, 2021 – Mar 31, 2022              40 days                 CAP
Authority Appeals
Lower Authority Appeals
                                   Apr 1, 2021 – Mar 31, 2022                80%                   CAP
Quality
New Employer Status
                                   Jan 1, 2021 – Dec 31, 2021                70%                   CAP
Determinations Time Lapse
                                                                      No more than 3 tax
                                                                     functions failing Tax
Tax Quality – Part A               Jan 1, 2021 – Dec 31, 2021                                      CAP
                                                                     Performance System
                                                                        (TPS) in a year
                                                                         The same tax
                                                                      function cannot fail
Tax Quality – Part B               Jan 1, 2021 – Dec 31, 2021                                      CAP
                                                                       for 3 consecutive
                                                                              years
                                                                       Score >7 and pass
Effective Audit Measure            Jan 1, 2021 – Dec 31, 2021                                    Narrative
                                                                          all 4 factors
                                   BAM batches 202027
Improper Payments Measure                                                   < 10%                  CAP
                                   through 202126
UI Overpayment Recovery
                                   Jul 1, 2020 – Jun 30, 2021                68%                   CAP
Measure


   Secretary’s Standards in                                                          FY 2023
                                      Measurement Period            Criteria       Requirement
          Regulation
First Payment Promptness
                                   Apr 1, 2021 – Mar 31, 2022         87%             CAP
(Intrastate 14/21 Days)
First Payment Promptness
                                   Apr 1, 2021 – Mar 31, 2022         93%             CAP
(Intrastate 35 Days)
First Payment Promptness
                                   Apr 1, 2021 – Mar 31, 2022         70%             CAP
(Interstate 14/21 Days)
First Payment Promptness
                                   Apr 1, 2021 – Mar 31, 2022         78%             CAP
(Interstate 35 Days)
Lower Authority Appeals (30
                                   Apr 1, 2021 – Mar 31, 2022         60%             CAP
Days)
Lower Authority Appeals (45
                                   Apr 1, 2021 – Mar 31, 2022         80%             CAP
Days)


                                                                                     FY 2023
      UI Programs, etc.               Measurement Period                           Requirement

                                                                    Results not
                                                                   submitted by       CAP
                                                                 August 10, 2022
Data Validation –Populations &
                               Apr 1, 2021 – Mar 31, 2022             Failing/
Modules (Benefits and Tax)
                                                                    incomplete
                                                                                      CAP
                                                                  submission by
                                                                 August 10, 2022
Compliance with NDNH
matching requirements for          Status as of March 31, 2022                        CAP
BAM
BAM operations not compliant
with investigative and/or
                                   Based on the annual
method and procedure
                                   determination letter issued                        CAP
requirements including
                                   on or before May 1, 2022
construction of valid samples
and sample populations
Incorrect recording of the Issue
Detection Date and/or              Apr 1, 2021 – Mar 31, 2022                       Narrative
Determination Date

TPS Sample Reviews                 Jan 1, 2021 – Dec 31, 2021                         CAP

Reporting Deficiencies                                                              Narrative

UI Program Integrity                                                                  IAP

Footnotes

1. Management Report: Preliminary Information on Potential Racial and Ethnic Disparities
in the Receipt of Unemployment Insurance Benefits during the COVID-19 Pandemic at
https://www.gao.gov/assets/gao-21-599r.pdf.

2. Pandemic Unemployment Assistance: Federal Program Supported Contingent Workers Amid Historic Demand,
but DOL Should Examine Racial Disparities in Benefit Receipt at https://www.gao.gov/products/gao-22-104438.