tennessee's unemployment insurance program · 2014-06-12 · tennessee's unemployment...
TRANSCRIPT
Tennessee's Unemployment Insurance Program
2013-2014
Joint Fiscal Review Committee June 10, 2014
Chair – Senator Bill Ketron
Vice Chair – Representative Mark White
1
Single Audit In Perspective
2
Perspective
Most Recent Audit Period July 2012 – June 2013
Prior Audit Period July 2011 – June 2012
Current Department Administration April 2013 - Present
3
Headlines Jobless Benefits Paid To:
84 Felons Behind Bars (.0002% of 390,000 claims)
16 (19) State Workers (.00004% of 390,000 claims)
3 Dead People (.000007% of 390,000 claims)
4
Overpayments FY 07-08 thru FY 12-13
$81,500,000 in overpayments (based on USDOL definition of overpayment)
Or
$181,000,000 in overpayments (includes $94.5 million COT estimated potential )
5
Antiquated System
43 Years Old Mainframe System COBOL
(Common Business Oriented Language) 120 Programs
(Leaky Dam) Multiple Undocumented Additions and
Work Arounds 6
Leaky Dam
7
Fraud Prevention
SAS (Fraud Detection Software)
Weekly Cross Matching
(Individuals Incarcerated)
8
Citizens Properly Served
9
Currently Approximately 29,500 Drawing TN Unemployment
72.3% of the Approved Claims are Paid within
Federal Guideline of 21 Days or Less (2013 average)
21 Days or Less - May 2014 65%, June 2014 68.6%
Overriding Priorities
10
Customer Service Experience
Effective/Efficient Program Delivery
Acquire/Implement New Modern System
SCUBI
After Extensive Due Diligence Tennessee Removed Itself From the
SCUBI Consortium July 29, 2013
11
Going It Alone Sought “off-the-shelf” Solution
(no “from scratch” creation)
Competitive Bid - RFP Contract Awarded Contract Signed
18-24 Months Implementation $38 Million Cost Avoidance
12
IT Failures 2013-14 • Nevada – four years planning - $38 million • Pennsylvania - $107 + $60 million overruns
– 42 months past due • Florida - $63 million + $6 million overrun –
10 months overdue • California - $188 million • Massachusetts - $46 million + $6 million
overruns, 2 year overdue 13
14
So Where is Tennessee? Incremental Improvements to Old
System
-While-
Implementing New Modern System
What You Hear From Constituents
15
“The message said to call but I can’t get anyone on the phone!”
“I was approved but was locked out when I tried to
certify!”
“Why is it taking so long to get my decision (payments)?”
Call Reduction
16
January 2014 – 803,786 (5 to 1 original callers)
February 2014 – 402,184 March 2014 – 299,948 April 2014 – 298,955 May 2014 – 249,829
(2 to 1 Original Callers)
17
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Jan Feb Mar Apr May Jun Jul
Call Attempts to Claim Center
21 Day Adjudication
18
Converted Paper and Manual Centric Process to Digital Process
Effect on Backlog To Date;
Approximately 45% decline since January 2014
Certification – PIN Resets
19
80% of Issues Revolve Around These
Very Recent Modifications Realizing Immediate Positive Results
New Customer Service System
20
Interactive
30 Day Trial Through March 2014
Fully Implemented April 2014
Contract Signed for Modernization
21
Contract signed May 1, 2014 for a New UI system to Replace the Mainframe System
Full Implementation Within 18-24 Months
$38 Million Cost Avoidance
Implementation Task Force
22
UI/Employment Security Workforce Development
IT Fiscal Services
Automated Employer Tax Payment
23
Automated system for employers to pay quarterly taxes
Since July 17th, 2013 implementation:
44,705 payments totaling $48,821,845.33
Trust Fund Health
24
Tennessee in Top Eleven States with Trust Fund Balances in Excess of $700,000,000 as of March 2014
May 2014 Balance
$874,542,999
Solvency of States UI Funds
25
U.S. Department of Labor – Trust Fund Solvency Report - May 2014
Questions
26