UI benefits operations self-assessment tool

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 Unemployment Insurance
                                                          CORRESPONDENCE SYMBOL
               ADVISORY SYSTEM
                                                          OUI/FO
          U.S. DEPARTMENT OF LABOR
                                                          DATE
             Washington, D.C. 20210
                                                          July 28, 2017


ADVISORY:          UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 18-17

TO:                STATE WORKFORCE AGENCIES

FROM:              BYRON ZUIDEMA /s/
                   Deputy Assistant Secretary

SUBJECT:           Unemployment Insurance Benefits Operations Self-Assessment Tool

1. Purpose. To announce a new Unemployment Insurance (UI) Benefits Operations Self-
   Assessment Tool for state UI agencies to use in evaluating their UI benefits operations, and
   to provide the U.S. Department of Labor (USDOL), Employment and Training
   Administration’s (ETA’s) guidance to the states on planning for the implementation and use
   of the tool and reporting of results to ETA.

2. References.
       Section 303(a) of the Social Security Act (SSA), 42 U.S.C. §503;
       Section 3303 of the Federal Unemployment Tax Act (FUTA), 26 U.S.C. §3303;
       Title 20 Code of Federal Regulations Parts 602-617, 625, 640, and 650;
       Unemployment Insurance Program Letter (UIPL) No. 17-16, Reengineering
         Unemployment Insurance (UI) Benefits Program Accountability Process: High
         Priority Designation of States with Sustained Poor Performance;
       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";
       Training and Employment Notice (TEN) No. 03-15, Reengineering Unemployment
         Insurance (UI) Benefits Program Accountability Processes: Update on
         Implementation Progress and State Impacts; and
       TEN No. 08-14, Reengineering Unemployment Insurance (UI) Benefits Program
         Accountability Processes.

3. Background. The UI Benefits Operations Self-Assessment Tool is a new comprehensive
   information collection instrument designed to assist states and ETA in assessing and
   improving UI benefits operations. In 2014, ETA issued TEN No. 08-14 announcing the
   reengineering of the processes used for UI benefits program accountability. For some time,
   the UI system has had a robust set of accountability and performance measurement processes
   designed to ensure program integrity and quality. As these processes have evolved, the UI
   system has undergone a number of changes at both the Federal and state levels. Examples of
   these changes include, among others, more constrained resources, loss of program

 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing

   institutional knowledge through retirements, and changes in how technology supports
   program operations. As a result, ETA determined that changes in the current benefits
   accountability processes were needed.

       One of the key changes has been to develop new mechanisms to focus more heavily on
       improving UI benefits program operations, with the ultimate goal of improving
       performance. The reengineering initiative will also support states’ identification of
       operational issues that may require new corrective strategies, inform ETA’s technical
       assistance efforts nationally and with individual states, and enable a more robust and
       effective collection and dissemination of states’ best practices. See TEN No. 08-14,
       issued on September 2, 2014 (articulating ETA’s goals for this initiative including,
       among others, the development of a new suite of accountability processes that focuses on
       operational capacity in addition to accuracy and timeliness, recognition of both Federal
       and state capacity, and assurance that the UI program is administered with a focus on
       both accountability and integrity.) TEN No. 03-15 provided states an update on the
       implementation of the project.

       A key component of the new framework is a new state self-assessment tool, which was
       developed for use by states to evaluate their benefit operations and processes on a
       continuous basis. The state self-assessment tool contains specific questions addressing
       the operational elements within the major functional and program areas of UI benefits.
       ETA worked closely with state subject matter experts (SMEs) who served as members of
       the team developing the self-assessment tool. ETA also engaged a contractor with
       personnel that have significant state UI experience to assist in the development of the
       self-assessment tool.

       An earlier version of the self-assessment tool was pilot tested in nine states during the
       first quarter of FY 2016. The pilot states were California; Colorado; Connecticut;
       Delaware; Georgia; Idaho; Minnesota; New Hampshire; and Utah. The pilot states
       provided important feedback and comments that guided additional revisions and
       refinements to the tool. As a new information collection instrument, the self-assessment
       tool was submitted for public review and comment as required by the Office of
       Management and Budget’s (OMB) Paperwork Reduction Act procedures. This first
       review and 60-day comment period was completed on August 29, 2016. As a result of
       the comments received, ETA made minor changes to some questions in the tool to
       provide greater clarity. ETA also included additional clarifying language in the Global
       instructions accompanying the tool. The second review and 30-day comment period was
       published in the Federal Register on March 22, 2017 (82 FR 14750). The comment
       period closed on April 21, 2017. OMB has approved the report of the state self-
       assessment tool’s responses as a new instrument collection request for use through July
       31, 2020.

4. The Self-Assessment Tool. The self-assessment tool contains in-depth questions on the
   functional and program areas within UI benefits operations. The questions address the
   following fifteen functional and program areas: 1) Adjudications/Benefit Timeliness and
   Quality Reviews; 2) Benefit Payment Control; 3) Continued Claims and Eligibility Reviews;
   4) Data Validation; 5) Disaster Unemployment Assistance; 6) Intake Claims --
   Unemployment Compensation for Ex-Servicemembers; 7) Intake Claims -- Unemployment


   Compensation for Federal Employees; 8) Intake Initial Claims -- Combined Wage Claims; 9)
   Intake -- Initial Claims; 10) Internal Security; 11) Lower Authority Appeals and Higher
   Authority Appeals; 12) Overarching Operational Matters; 13) Short-Time Compensation; 14)
   Trade Readjustment Allowances; and 15) Worker Profiling and Reemployment Services and
   Reemployment Services and Eligibility Assessment.

       Within each functional or program area, there are questions that cover nine operational
       elements (where applicable). The nine elements are: 1) Procedures, Policies and
       Confidentiality; 2) Training; 3) Workload Analysis and Management Controls; 4)
       Performance Management; 5) Information Technology; 6) Claimant and Employer
       Access and Communication; 7) Operational Efficiency and Resource Allocation; 8)
       Staffing; and 9) Fiscal Management.

       As previously mentioned, Global Instructions have been developed to accompany the
       self-assessment tool, which describe the overall use of the tool. For each functional or
       program area’s set of questions, there is a separate set of instructions. A resource tracker
       has also been developed to assist the state self-assessment reviewer in tracking the
       documents and staff interviewed during the assessment to verify the responses to the
       questions.

       A chart showing the different functional and program areas along with the operational
       elements that are addressed in the self-assessment tool is attached. (See Attachment to
       this UIPL.) The self-assessment tool, including instructions, can be found on ETA’s
       website at http://oui.doleta.gov/unemploy/satool.asp.

5. State Self-Assessment Reviewer. A well-qualified and experienced individual(s) placed in
   a position of independence is critical for the reviewer position and will help ensure the
   success of the state self-assessment process.

       A. Each state UI agency must designate a person(s) to conduct the state self-assessment
          using the UI Benefits Operations Self-Assessment tool developed by ETA for this
          purpose. The position will be referred to as the “self-assessment reviewer.”

       B. The self-assessment reviewer(s) must be:
          i. Responsible to officials at a sufficiently high level in the state UI agency to permit
             an independent review and monitoring of UI program operations and system
             integrity, and to ensure all agency staff are responsive to the reviewer’s requests
             for information for purposes of the review;
         ii. Supervised by an official other than a UI Chief of Benefits, the Chief of
             Information Technology/Data Processing, or any individual or organization
             having direct responsibility for payment, certification, or processing operations.
             The supervisor may not be performing work in a unit responsible for functions or
             operations subject to a self-assessment evaluation conducted by the reviewer
             (however, a reviewer may be supervised by the state’s UI Director); and
        iii. Authorized to perform reviews on a regular and ongoing basis. Key areas to be
             assessed and/or reviewed by the self-assessment reviewer must include the 15
             specified UI benefits areas in the UI Benefits Operations Self-Assessment Tool
             and the various operational elements denoted in each area. Benefits operations


       involve all benefits functions and activities in UI call/contact centers and other
       claims processing centers/offices.

C. The state may hire state staff or use contracted staff to perform the responsibilities of
   the self-assessment reviewer. The state may use contract labor if the contracted staff
   demonstrates sufficient knowledge of and experience with the UI program to perform
   the duties of a self-assessment reviewer. For example, a recently retired state UI
   agency employee with the qualifications discussed in this UIPL could be a possible
   candidate to perform these responsibilities.

D. If the state is using state staff to conduct the self-assessment reviews, one full-time
   equivalent staff position must be designated for purposes of the self-assessment
   review. Reviews may be completed by one full-time person or divided among two or
   more individuals to conduct reviews on a part-time basis. However, any other area(s)
   of responsibility, which the reviewer(s) may have, must not be subject to the self-
   assessment review. The costs of the reviewer(s) will be funded from each state’s
   existing UI administrative grant.

E. Important experience and skills to consider in choosing the individual(s) to serve as
   the self-assessment reviewer(s) include the following:
      i.   UI program experience and knowledge -- Extensive experience in the UI
           benefits program and a comprehensive knowledge of the UI benefits system,
           including the state’s UI laws, regulations, and written policies.
     ii. Review skills -- Skills in planning and conducting reviews of systems and
           procedures are necessary, including time-management, interviewing skills,
           and understanding and explaining complex matters.
    iii. Excellent interpersonal skills -- The self-assessment process should encourage
           an open and trusting relationship and a position of neutrality. The self-
           assessment is a diagnostic tool to obtain information and identify factors that
           aid or impede service delivery and program improvement.
    iv.    Communications skills -- The ability to communicate effectively through the
           presentation of findings and recommendations to management and line staff is
           critical in fostering improvements in UI benefits operations.
     v.    Strong attention to detail.

F. The self-assessment reviewer will be responsible for:
      i.  conducting meetings with management and line staff to discuss the benefits
          operations review process and subsequently updating management and staff
          on its progress and reviewing findings, recommendations, and results;
     ii. developing work plans to conduct the benefits operations review;
    iii. compiling and reviewing materials such as policies, procedures, and
          handbooks;
    iv.   preparing for and conducting interviews of state SMEs/staff about UI benefits
          operations;
     v.   personally observing UI benefits processes and operations within the state UI
          agency;


            vi.   conducting the self-assessment and preparing reports of findings, conclusions
                  and recommendations for program improvement and/or corrective action and
                  identifying positive/successful practices;
           vii.   establishing a system for maintaining records and documentation; and
          viii.   submitting the reports of the self-assessment results to USDOL/ETA.

       G. ETA will provide training for individuals selected to serve as self-assessment
          reviewers.

6. State Responsibilities. Each state UI agency must:

       A. Identify reviewer(s) - As discussed in section 5C above, the state needs to select/hire
          the state staff or contracted staff who will be performing the state self-assessment
          review and provide the name(s) and contact information of such individual(s) to the
          appropriate ETA Regional Office;
       B. Support a reviewer’s participation in training – ETA will be providing virtual training
          to individuals identified by states as self-assessment reviewers prior to implementing
          the use of the self-assessment tool, and the states need to ensure the designated
          reviewers actively participate in these training events;
       C. Ensure the need for cooperation is known by all state agency staff to allow the
          reviewer(s) to perform and complete the self-assessment review;
       D. Review the information from the assessment for performance improvement – as
          discussed in section 10A, below, state UI agencies should use the information gleaned
          from the self-assessment process to pursue performance and process improvements,
          address any training needs, update policies or procedures, and share any identified
          best practices; and
       E. Provide the completed results of the review to ETA following the instructions on the
          website (http://oui.doleta.gov/unemploy/satool.asp ) and also provide a copy to the
          appropriate ETA Regional Office.

7. Technology Requirements. The UI Benefits Operations Self-Assessment Tool exists in a
   fillable PDF format. It is necessary that the self-assessment reviewers have Acrobat Reader
   DC on their computers to download and complete the self-assessment.

8. Review Period and Time for Conducting the Review. In conducting the UI Benefits
   Operations Self-Assessment, the state reviewer(s) will examine the state agency’s operations
   and activities for a specific period of time. The period of time under review is the “review
   period.” The self-assessment review period will generally be the twelve months prior to the
   time the self-assessment begins. States may start conducting the first review process on or
   after October 1, 2017, and after completion of training of the states’ reviewers.

       The first self-assessment cycle will be over eighteen months (six quarters) to enable
       states to become familiar with the tool and the review process. States will have until
       March 31, 2019, to complete the entire sets of questions for all 15 functional and program
       areas, and results submitted to ETA by April 15, 2019. In subsequent years, the review
       will be conducted over a one-year (twelve months/four quarters) period with each review
       being completed by March 31 and the results submitted to ETA by April 15.


        ETA expects that use of the tool will take less effort as states become more familiar and
        experienced with the tool and process. ETA will monitor the states’ experience with the
        first implementation cycle to validate this assumption.

9. Completing the State UI Benefits Operations Self-Assessment.
     The state reviewer will access the self-assessment tool at ETA’s website:
     http://oui.doleta.gov/unemploy/satool.asp. Reviewers should download a copy of each
     functional and program area set of questions for their use in conducting the review. Once
     a functional or program area of the self-assessment is concluded, reviewers will upload
     the responses of the completed self-assessment area for transmittal to ETA by following
     the instructions on the website found at http://oui.doleta.gov/unemploy/satool.asp. ETA
     encourages states to submit the results for each functional or program area of the self-
     assessment at the time the set of questions for each area is completed. However, as
     specified above, April 15 is the due date. Further, beginning in 2020, results for all 15
     functional and program areas must be submitted annually by April 15.

10. The Purpose and Uses of the State Responses to the UI Benefits Operations Self-
    Assessment Tool. The responses to the UI Benefits Operations Self-Assessment Tool will
    be used for two purposes: (1) supporting state UI agencies in making improvements to their
    UI benefits operations; and (2) assisting ETA in monitoring state UI benefits program
    operations and in providing technical assistance to states.

        A. State Use: Use of self-assessment data can help create a culture that supports
        constructive feedback in planning and managing change. The state’s practices in the
        functional and program areas will be thoroughly reviewed to identify areas of poor
        performance, as well as areas where the state is performing well. At the conclusion of the
        self-assessment, the state reviewer must share the results with state UI Administrators
        and appropriate program managers so that any needed action(s) can be addressed. These
        items may also be addressed in corrective measures as part of the State’s Quality Service
        Plan (see ETA Handbook No. 336). If training needs are identified, appropriate training
        curriculum should be developed and delivered to staff. Policies and procedures that are
        outdated should be brought up-to-date and published for appropriate staff to use.
        Administrators should also use the review results as a means to determine whether the
        state is properly implementing merit staffing requirements, managing its administrative
        grant funds, and maintaining its continuity of operations plans, as well as reviewing other
        related business practices that are essential to the state’s UI benefits operations. The state
        UI agency leadership is strongly encouraged to also use the self-assessment results to
        identify any successful or promising practices occurring in the state and consider sharing
        the information with other states. Such identified practices can be shared on the UI
        Community of Practice maintained by ETA on WorkforceGPS at
        https://ui.workforcegps.org/.

        B. ETA Use: The state self-assessment responses will support periodic reviews
        conducted by ETA’s Regional and National Office staff. The state’s responses will be
        evaluated in relation to Federal law and regulations, including the state’s compliance with
        Federal requirements. The responses to the self-assessment questions will allow ETA’s
        Regional Office staff to work with the state to identify opportunities to improve its
        operations by capitalizing on the state’s own successful practices as well as those of other


        states. The self-assessment results will also identify areas where performance
        improvements are needed. The results will also inform ETA’s technical assistance efforts
        and will enable a more robust and effective collection and dissemination of
        promising/successful practices. As discussed in UIPL No. 17-16, information on states’
        operational issues that will be gleaned from the states’ self-assessments, as well as
        information on the states’ timeliness and quality performance measures, improper
        payment rates, and information from ETA Regional Office monitoring and/or technical
        assistance efforts, will be used by ETA in identifying “high priority” states. States that
        are deemed to be “high priority” will be subject to intensive technical assistance from
        ETA to help address problem areas and/or identified issues. As mentioned above, any
        identified issues may also be addressed in corrective measures as part of the State’s
        Quality Service Plan (see ETA Handbook No. 336).

11. Office of Management and Budget Approval. The Unemployment Insurance Benefits
    Operations Self-Assessment Report of Responses has been approved by OMB in accordance
    with the Paperwork Reduction Act of 1995. The OMB Control Number is 1205-0529 with
    an expiration date of July 31, 2020.

12. Action Requested. State Administrators should provide the information in this UIPL to
    appropriate staff. Each state UI agency must staff a position(s) that will be responsible for
    conducting the state self-assessment and provide the appropriate ETA Regional Office with
    the name(s) and contact information of the designated self-assessment reviewer(s). Each
    state may start conducting a self-assessment beginning October 1, 2017 and must provide the
    results of the assessment to ETA as described in section 8 above in this UIPL.

13. Inquiries. All questions or inquiries should be referred to the appropriate ETA Regional
    Office.

14. Relevant Website. Complete sets of the questions for each functional or program area of the
    UI Benefits Operations Self-Assessment Tool and accompanying instructions are located on
    the following website: http://oui.doleta.gov/unemploy/satool.asp .

15. Attachment. Functional/Program Areas and Operational Elements Chart

Attachment (official PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2017/UIPL_18-17_Attachment_Acc.pdf)

FUNCTIONAL/PROGRAM AREAS and OPERATIONAL ELEMENTS CHART                                           Version 8.1


                                                                     Operational Elements
                                                                                             Claimant and Operational
Functional/Progra     Procedures,                Workload                                                              Staffing
                                                                Performance Information       Employer    Efficiency/             Fiscal
    m Areas           Policies and Training Analysis/Management                                                       and Merit
                                                                Management Technology         Access and   Resource             Management
                     Confidentiality              Controls                                                             Staffing
                                                                                            Communication Allocation
Overarching
Operational
Matters (Program
Wide)
Intake - Initial
Claims and
Monetary Dets.
CWC
UCFE
UCX
Adjudication/BTQ
Continued
Claims/Eligibility
Review
Appeals (LAA &
HAA)
BPC
Internal Security
DUA
Reemployment
Data Validation
TRA
STC


Cell Descriptors                            Not Applicable