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HRD-83-78 1 (1983-07-29)

handle is hein.gao/gaobabkhm0001 and id is 1 raw text is: 


                     UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548 -


HUMAN RMOuI 'C                      July 29, 1983     , .,        -..... ........

                                                     Mr. FM abU q ------  -  ---  --
                                                       lit, ~ of bl . . .. .... ..........

    The Honorable Albert Angrisani                               -- -------
    Assistant Secretary forCo
      Employment and Training
    Employment and Training         iIli--I
      Administration
    Department of Labor
                                       089163
    Dear Mr. Angrisani:

         Subject: Observations Concerning States' Implementation
                   of the Eligibility Review Program (GAO/HRD-83-78)

         Recently we met with representatives from your Unemployment
    Insurance Service office to discuss the preliminary results of
    our survey of States' unemployment insurance (UI) productivity
    and quality appraisal efforts. During that discussion, we pre-
    sented information regarding the Eligibility Review Program
    (ERP) and hbw it relates to productivity and quality within the
    UI program. ERP is designed to review a claimant's continuing
    eligibility for benefits and to help the claimant find suitable
    work. This letter details our observations on how ERP was being
    implemented at selected local UI offices visited during our sur-
    vey. These observations indicate that ERP is not being imple-
    mented in accordance with established program guidance.

         Our observations of ERP were made at local UI offices in
    five States visited during our survey--Tennessee, North Caro-
    lina, Florida, Massachusetts, and Virginia. We conducted our
    fieldwork from November 1982 through June 1983. We interviewed
    Federal and State agency staff responsible for ERP and reviewed
    pertinent documents explaining its operation. The results of
    our work have been discussed with cognizant members of your
    Unemployment Insurance Service office and their comments have
    been incorporated accordingly.

         The Department of Labor established ERP because the large
    number of unemployment claims during 1974 and 1975 and the re-
    sulting deterioration in claims operations raised questions as
    to the adequacy of the UI system's controls for preventing and
    detecting improper benefit amounts. Federal and State adminis-
    trators recognized a need for a more consistent and stringent
    application of State laws regarding continued eligibility. As
    a result, Labor issued guidelines for an ERP to all States in
    December 1976 and beginning in fiscal year 1977 Federal funds
    were allocated to the States to operate the program to help
    improve quality control of benefit payments in the UI system.

                                                          (202683)


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