Update of Unemployment Insurance Service (UIS) Tracking System for GAO/DIG Audits and Studies

U.S. DEPARTMENT OF LABOR Employment and Training Administration Washington, D. C. 20210	CLASSIFICATION UIS
	CORRESPONDENCE SYMBOL TEUMC
	ISSUE DATE October 5, 1992
RESCISSIONS	EXPIRATION DATE

DIRECTIVE

:

UIS INFORMATION BULLETIN NO. 01-93

TO

:

ALL REGIONAL ADMINISTRATORS

FROM

:

MARY ANN WYRSCH
Director
Unemployment Insurance Service

SUBJECT

:

Update of Unemployment Insurance Service (UIS) Tracking System for GAO/DIG Audits and Studies

Attached for your information is an update on the current status of OIG and GAO studies and audits affecting UI as of June 1, 1992. All audits completed more than two years ago will generally be deleted from the tracking system, except those audits to which a current or projected audit makes reference.

In some instances, there may be reference to developments after June 1, 1992. The summaries were prepared with assistance of the OIG and GAO staff. Future updates will continue to be issued semi-annually.

If you have additional information or questions concerning any of the studies and audits, please contact the tracking coordinator, Barbara A. Campbell, 8-219-5340.

Attachments

TRACKING SYSTEM FOR THE OIG AND GAO AUDITS

STATUS UPDATE
JUNE 1, 1992

DIG/GAO AUDITS AND STUDIES

Current Projects Page

Federal Employees' Compensation Trust Fund Account
Monitoring of the Quality Control Program
Review of UCX/UCFE
UI Program Statistics Statements, Federal Reporting and Validation
Review of SESA Automation Support Accounts

Projected & Other Projects
Self-Employment Demonstration Project
Risk Assessment of UI Systems
Completed Projects
UI Experiencee Rating Follow-Up
Single Audit Coverage of DOL Funds

1-1
1-2
1-3
1-4
1-5

2-1
2-2

3-1
3-2

Study/Report Title: Federal Employees' Compensation Trust Fund
Account (12-90-012-03-315)

Subject Area: Financial Management - Budget

Status: Projected Current X Completed Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): June 1989 until Completion

Study Location: National Office

Purpose of Study (Description/Objectives): To evaluate the Federal Employees' Compensation account to determine if it is administered in accordance with applicable statutes and regulations. The overall objective of the review is to determine why the cash fund is declining, and to project the future cash needs to insure solvency of the fund.

Action Required: N/A

Action Referred to (UI Contact, Office. Telephone): Wanda Drew, OLAS, Room 5-4522 FPB, 219-9213

ETA Transmittal/Notification Date: N/A
Draft Report Received: February 1990
Final Report Received: May 1990

UI Response Due Date: July 16, 1990

Status of Response:elow. See "Comments" Below

Comments: Two of the three recommendations were closed on March 23, 1992. The one remaining recommendation, which was resolved but not closed, had to be re-evaluated upon completion of the field work. The field work has now been completed, however, OIG has not notified UIS of the status of the recommendations.

Study/Report Title: Monitoring of the Quality Control (QC) Program

Subject Area: Quality Control Implementation

Status: Projected Current X Completed Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): Ongoing

Study Location: District of Columbia, Maryland, Pennsylvania, Massachusetts, Region III and National Office

Purpose of Study (Description/Objectives): The presurvey will focus on the implementation of QC.

Action Required: None

Action Referred To (UI Contact, Office, Telephone): Burman Skrable, TEUQ, Room 5-4015 FPB, 219-5220

ETA Transmittal/Notification Date: N/A Draft Report Received: N/A
Final Report Received: N/A

UI Response Due Date: N/A

STRONG>Status of Response: N/A

Comments: OIG plans to determine the status/plans of the UIS-QC Program and provide comments on the proposed plans and time frames. They will also identify areas not being reviewed by UISQC and provide comments regarding their inclusion. Additionally, OIG will also provide technical assistance in the pilot testing of the core Revenue QC Program.

Study/Report Title: Review of UCX/UCFE

Subject Area:

Status: Projected Current X Completed Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): June 1992 until completion.

Study Location: Washington, D.C. and California, and possibly other SESAs.

Purpose of Study (Description/Objectives): A study to determine if the SESAs are properly utilizing the crossmatch mechanism at the LCCC in processing UCX claims.

Action Required: N/A

Action Referred To (UI Contact, Office, Telephone): Sandi King, OPM, Room C-4514 FPB, 219-5309.

ETA Transmittal/Notification Date: N/A
Draft Report Received: N/A
Final Report Received: N/A

UI Response Due Date: N/A

STRONG>Status of Response: N/A

Comments: The study/review was scheduled to begin some time in June 1992. OIG has completed their review of the California Employment Development Department and expect to report results soon.

Study/Report Title: UI Program Statistics Statements, Federal Reporting and Validation Project #: 03-P89-008-03-001

Subject Area:

Status: Projected Current X Completed Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): N/A

Study Location: National Office, ETA Regional Offices and SESAs.

Purpose of Study (Description/Objectives): UIS uses two reporting systems for program statistics -- the CIS and the regular reporting system. The results of a prior study revealed that UIS does not reconcile these two reporting systems and may be funding SESAs using different data than that used for budgeting purposes.

Action Required: N/A

Action Referred To (UI Contact, Office, Telephone): Ron Wilus, OLAS, Room S-4519 FPB, 219-8640

ETA Transmittal/Notification Date: 11/18/91Mbr>Draft Report Received: N/A
Final Report Received: N/A

UI Response Due Date: N/A

STRONG>Status of Response: N/A

Comments: There has been no activity on this audit. The audit is no longer relevant, because it was based on concerns about differences between UI required reports and CIS. Now, with automated reporting, the CIS tables are being derived from the UI required reports, so the data for the two series are identical.

Study/Report Title: Review of SESA Automation Support Accounts

Subject Area: UI Automation

Status: Projected Current X Completed Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): See 'Comments' Below

Study Location: Approximately 10-19 States will be selected.

Purpose of Study (Description/Objectives): To determine whether ADP equipment was purchased in accordance with the conditions of the grant, whether ADP equipment was used for purposes related to UI automation, and whether valid resources-on-order were established by the SESAs.

Action Required: N/A

Action Referred To (UI Contact, Office, Telephone): Betty E. Castillo, TEUMC, Room S-4516 FPB, 219-5616

ETA Transmittal/Notification Date:
Draft Report Received: N/A
Final Report Received: N/A

UI Response Due Date: N/A

STRONG>Status of Response: N/A

Comments: The OIG has conducted audits and begun the audit process in 4 States. It is expected that they will audit approximately 10-19 States who received awards during the Fiscal Years 1987-1991 time period.

Study/Report Title: Self-Employment Demonstration Project -Evaluation of Washington State (09-91-200-03-315)

Subject Area: Research.

Status: Projected Current Completed Other X

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): See "Comments" Below

Study Location: Washington State

Purpose of Study (Description/Objectives): Purpose of Study (Description/Objectives): To determine if the program is feasible as it is currently structured and whether it should be recommended to DOL as a viable program to be considered in the formulation of future employment and training policy.

Action Required: None

Action Referred To (UI Contact, Office, Telephone): Steve Wandner OLAS Room S-4231 FPB 219-4620.

ETA Transmittal/Notification Date:
Draft Report Received: 11/08/90
Final Report Received: 04/02/91

UI Response Due Date: 04/15/91

STRONG>Status of Response: Completed (See Below).

Comments: The audit is completed and had no formal findings and required no corrective action. The OIG however is awaiting the publication of a UIPL before closing out this audit. The UIPL will present the findings of the Project and will demonstrate that ETA has achieved one of the objectives of this Project. This UIPL will not be published until 1994-- after the completion of the Project evaluation.

Study/Report Title: Study/Report Title: Risk Assessment of UI Systems

Subject Area: SESA Internal Security Program

Status: Projected Current X Completed Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): INA

Study Location: The Chicago OIG Regional Office has been assigned the lead on this Study - SESAs to be studied are undecided at this time.

Purpose of Study (Description/Objectives): Study to assess how SESA Internal Security Units function, including how they plan and conduct risk analyses and follow-up on identified vulnerabilities in existing internal controls.

Action Required: None at this time.

Action Referred To (UI Contact, Office, Telephone): Betty E. Castillo, TEUMC, Room S-4516 FPB, 219-5616

ETA Transmittal/Notification Date: N/A
Draft Report Received: N/A
Final Report Received: N/A

UI Response Due Date: N/A

STRONG>Status of Response: N/A

Comments: This Project, which was formerly entitled "Internal Security Program," is still scheduled but cannot be done before FY '94 or '95. Therefore, this audit will be temporarily deleted from the tracking system until such time a decision is made to conduct the audit.

Study/Report Title: UI Experience Rating Follow-Up

Subject Area: Actuarial

Status: Projected Current X Completed Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): 09/88 to 04/90

Study Location: See "Comments" Below.

Purpose of Study (Description/Objectives): This review expanded on earlier audit work and provided information to demonstrate the feasibility of reconciliation. The objective was to evaluate the adequacy of the State' UI Trust Fund accounting system, particularly in regard to the accuracy of experience rating information and Federal reporting.

Action Required: N/A

Action Referred To (UI Contact, Office, Telephone): Ron Wilus, TEURA, Room S-4519 FPB, 219-8640

ETA Transmittal/Notification Date:
Draft Report Received: 09/05/89
Final Report Received: 01/25/90

UI Response Due Date: 04/25/90

STRONG>Status of Response: ETA Responded 04/18/90

Comments: Work has been completed in Maryland, New Jersey, Utah, Delaware, West Virginia and Wisconsin. OIG recommends increased ETA leadership to: (1) improve SESA accounting systems; (2) fully account for experience rating; and (3) improve Federal reporting.

Study/Report Title: Single Audit Coverage of DOL Funds (04-91-006-50-598)

Subject Area: INA

Status: Projected Current Completed X Other

Initiating Agency/Office: OIG X GAO Other

Period of Performance (Begin-end Dates): 11/88 to Completion

Study Location: California, Louisiana, New York, North Carolina, Texas, and Wisconsin.

Purpose of Study (Description/Objectives): To determine the effectiveness of the Single Audit Act of 1988 as it relates to the Secretary of Labor's needs and responsibilities for accounting for DOL funds provided to the States. In addition, to the six States listed above, OIG also plans to visit a sample of sub-recipients which receive DOL funds from these direct recipients.

Action Required: N/A

Action Referred To (UI Contact, Office, Telephone): INA

ETA Transmittal/Notification Date: 12/29/88
Draft Report Received: 03/91
Draft Report Received: 03/29/91

UI Response Due Date: N/A

STRONG>Status of Response: N/A

Comments: No response is required from UI. No further action is necessary.

DIRECTIVE	:	UIS INFORMATION BULLETIN NO. 01-93

TO	:	ALL REGIONAL ADMINISTRATORS

FROM	:	MARY ANN WYRSCH Director Unemployment Insurance Service

SUBJECT	:	Update of Unemployment Insurance Service (UIS) Tracking System for GAO/DIG Audits and Studies

Study/Report Title:	Federal Employees' Compensation Trust Fund Account (12-90-012-03-315)
Subject Area:	Financial Management - Budget
Status:	Projected Current X Completed Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	June 1989 until Completion
Study Location:	National Office
Purpose of Study (Description/Objectives):	To evaluate the Federal Employees' Compensation account to determine if it is administered in accordance with applicable statutes and regulations. The overall objective of the review is to determine why the cash fund is declining, and to project the future cash needs to insure solvency of the fund.
Action Required:	N/A
Action Referred to (UI Contact, Office. Telephone):	Wanda Drew, OLAS, Room 5-4522 FPB, 219-9213
ETA Transmittal/Notification Date:	N/A Draft Report Received: February 1990 Final Report Received: May 1990
UI Response Due Date:	July 16, 1990
Status of Response:elow.	See "Comments" Below
Comments:	Two of the three recommendations were closed on March 23, 1992. The one remaining recommendation, which was resolved but not closed, had to be re-evaluated upon completion of the field work. The field work has now been completed, however, OIG has not notified UIS of the status of the recommendations.

Study/Report Title:	Monitoring of the Quality Control (QC) Program
Subject Area:	Quality Control Implementation
Status:	Projected Current X Completed Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	Ongoing
Study Location:	District of Columbia, Maryland, Pennsylvania, Massachusetts, Region III and National Office
Purpose of Study (Description/Objectives):	The presurvey will focus on the implementation of QC.
Action Required:	None
Action Referred To (UI Contact, Office, Telephone):	Burman Skrable, TEUQ, Room 5-4015 FPB, 219-5220
ETA Transmittal/Notification Date:	N/A Draft Report Received: N/A Final Report Received: N/A
UI Response Due Date:	N/A
STRONG>Status of Response:	N/A
Comments:	OIG plans to determine the status/plans of the UIS-QC Program and provide comments on the proposed plans and time frames. They will also identify areas not being reviewed by UISQC and provide comments regarding their inclusion. Additionally, OIG will also provide technical assistance in the pilot testing of the core Revenue QC Program.

Study/Report Title:	Review of UCX/UCFE
Subject Area:
Status:	Projected Current X Completed Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	June 1992 until completion.
Study Location:	Washington, D.C. and California, and possibly other SESAs.
Purpose of Study (Description/Objectives):	A study to determine if the SESAs are properly utilizing the crossmatch mechanism at the LCCC in processing UCX claims.
Action Required:	N/A
Action Referred To (UI Contact, Office, Telephone):	Sandi King, OPM, Room C-4514 FPB, 219-5309.
ETA Transmittal/Notification Date:	N/A Draft Report Received: N/A Final Report Received: N/A
UI Response Due Date:	N/A
STRONG>Status of Response:	N/A
Comments:	The study/review was scheduled to begin some time in June 1992. OIG has completed their review of the California Employment Development Department and expect to report results soon.

Study/Report Title:	UI Program Statistics Statements, Federal Reporting and Validation Project #: 03-P89-008-03-001
Subject Area:
Status:	Projected Current X Completed Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	N/A
Study Location:	National Office, ETA Regional Offices and SESAs.
Purpose of Study (Description/Objectives):	UIS uses two reporting systems for program statistics -- the CIS and the regular reporting system. The results of a prior study revealed that UIS does not reconcile these two reporting systems and may be funding SESAs using different data than that used for budgeting purposes.
Action Required:	N/A
Action Referred To (UI Contact, Office, Telephone):	Ron Wilus, OLAS, Room S-4519 FPB, 219-8640
ETA Transmittal/Notification Date:	11/18/91Mbr>Draft Report Received: N/A Final Report Received: N/A
UI Response Due Date:	N/A
STRONG>Status of Response:	N/A
Comments:	There has been no activity on this audit. The audit is no longer relevant, because it was based on concerns about differences between UI required reports and CIS. Now, with automated reporting, the CIS tables are being derived from the UI required reports, so the data for the two series are identical.

Study/Report Title:	Review of SESA Automation Support Accounts
Subject Area:	UI Automation
Status:	Projected Current X Completed Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	See 'Comments' Below
Study Location:	Approximately 10-19 States will be selected.
Purpose of Study (Description/Objectives):	To determine whether ADP equipment was purchased in accordance with the conditions of the grant, whether ADP equipment was used for purposes related to UI automation, and whether valid resources-on-order were established by the SESAs.
Action Required:	N/A
Action Referred To (UI Contact, Office, Telephone):	Betty E. Castillo, TEUMC, Room S-4516 FPB, 219-5616
ETA Transmittal/Notification Date:	Draft Report Received: N/A Final Report Received: N/A
UI Response Due Date:	N/A
STRONG>Status of Response:	N/A
Comments:	The OIG has conducted audits and begun the audit process in 4 States. It is expected that they will audit approximately 10-19 States who received awards during the Fiscal Years 1987-1991 time period.

Study/Report Title:	Self-Employment Demonstration Project -Evaluation of Washington State (09-91-200-03-315)
Subject Area:	Research.
Status:	Projected Current Completed Other X
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	See "Comments" Below
Study Location:	Washington State
Purpose of Study (Description/Objectives):	Purpose of Study (Description/Objectives): To determine if the program is feasible as it is currently structured and whether it should be recommended to DOL as a viable program to be considered in the formulation of future employment and training policy.
Action Required:	None
Action Referred To (UI Contact, Office, Telephone):	Steve Wandner OLAS Room S-4231 FPB 219-4620.
ETA Transmittal/Notification Date:	Draft Report Received: 11/08/90 Final Report Received: 04/02/91
UI Response Due Date:	04/15/91
STRONG>Status of Response:	Completed (See Below).
Comments:	The audit is completed and had no formal findings and required no corrective action. The OIG however is awaiting the publication of a UIPL before closing out this audit. The UIPL will present the findings of the Project and will demonstrate that ETA has achieved one of the objectives of this Project. This UIPL will not be published until 1994-- after the completion of the Project evaluation.

Study/Report Title:	Study/Report Title: Risk Assessment of UI Systems
Subject Area:	SESA Internal Security Program
Status:	Projected Current X Completed Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	INA
Study Location:	The Chicago OIG Regional Office has been assigned the lead on this Study - SESAs to be studied are undecided at this time.
Purpose of Study (Description/Objectives):	Study to assess how SESA Internal Security Units function, including how they plan and conduct risk analyses and follow-up on identified vulnerabilities in existing internal controls.
Action Required:	None at this time.
Action Referred To (UI Contact, Office, Telephone):	Betty E. Castillo, TEUMC, Room S-4516 FPB, 219-5616
ETA Transmittal/Notification Date:	N/A Draft Report Received: N/A Final Report Received: N/A
UI Response Due Date:	N/A
STRONG>Status of Response:	N/A
Comments:	This Project, which was formerly entitled "Internal Security Program," is still scheduled but cannot be done before FY '94 or '95. Therefore, this audit will be temporarily deleted from the tracking system until such time a decision is made to conduct the audit.

Study/Report Title:	UI Experience Rating Follow-Up
Subject Area:	Actuarial
Status:	Projected Current X Completed Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	09/88 to 04/90
Study Location:	See "Comments" Below.
Purpose of Study (Description/Objectives):	This review expanded on earlier audit work and provided information to demonstrate the feasibility of reconciliation. The objective was to evaluate the adequacy of the State' UI Trust Fund accounting system, particularly in regard to the accuracy of experience rating information and Federal reporting.
Action Required:	N/A
Action Referred To (UI Contact, Office, Telephone):	Ron Wilus, TEURA, Room S-4519 FPB, 219-8640
ETA Transmittal/Notification Date:	Draft Report Received: 09/05/89 Final Report Received: 01/25/90
UI Response Due Date:	04/25/90
STRONG>Status of Response:	ETA Responded 04/18/90
Comments:	Work has been completed in Maryland, New Jersey, Utah, Delaware, West Virginia and Wisconsin. OIG recommends increased ETA leadership to: (1) improve SESA accounting systems; (2) fully account for experience rating; and (3) improve Federal reporting.

Study/Report Title:	Single Audit Coverage of DOL Funds (04-91-006-50-598)
Subject Area:	INA
Status:	Projected Current Completed X Other
Initiating Agency/Office:	OIG X GAO Other
Period of Performance (Begin-end Dates):	11/88 to Completion
Study Location:	California, Louisiana, New York, North Carolina, Texas, and Wisconsin.
Purpose of Study (Description/Objectives):	To determine the effectiveness of the Single Audit Act of 1988 as it relates to the Secretary of Labor's needs and responsibilities for accounting for DOL funds provided to the States. In addition, to the six States listed above, OIG also plans to visit a sample of sub-recipients which receive DOL funds from these direct recipients.
Action Required:	N/A
Action Referred To (UI Contact, Office, Telephone):	INA
ETA Transmittal/Notification Date:	12/29/88 Draft Report Received: 03/91 Draft Report Received: 03/29/91
UI Response Due Date:	N/A
STRONG>Status of Response:	N/A
Comments:	No response is required from UI. No further action is necessary.