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089474 1 (1972-09-26)

handle is hein.gao/gaobacvmj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 SP MANPOWER AND WELFARE DIVISION Dear Mr. Zarb We have completed a survey of the extended benefit program established by the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C 3304 note) as administered by the Minnesota Department of Manpower Services The survey was conducted as a part of our survey of selected unemployment insurance activities at the Chicago, Illinois, Regional Manpower Administration Office and at the State and local offices of the employment security agencies in the States of Minnesota and Illinois. Oui comments on other unemployment insurance activities will be reported separately, as appropriate During our survey we noted that operating personnel of the Minnesota Department of Manpower Services were properly handling the accounting for extended benefit payments to residents of the State and the resultant determination of the Federal share of such payments. However, they were improperly handling the accounting for payments to and reimbursements from other States in connection with extended benefits made on the basis of combined wage claims and for reimbursements from Minnesota State agencies for extended benefit payments to former State employees. While over and undercharges to the Federal Government occurred, the Federal Government was underbilled $9,288 owed to Minnesota We are bringing this matter to your attention because it appears that operating personnel at the State level did not fully comprehend the theory of the reimbursement of the Federal share of extended benefit payments based on combined wage claims, and other States may be having similai problems. The State of Minnesota did not follow the procedures as set forth in section 5753 of the Employment Security Manual for the reimbursement of the Federal share of extended benefit payments based on combined wage claims which provides Reimbursement involving UI claims only. The paying State will receive the full 50 percent Federal share of all extended benefits paid to a combined-wage claimant. In turn, the paying State will bill all transferring States 50 percent of the regular charge.*** The State of Minnesota's practice is to bill the Federal Government for 50 percent of the total amount of extended benefits paid to residents of the State during the month Prior to making the computation, however, Minnesota increased the amount of extended benefits paid to the residents

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