tennessee's unemployment insurance program · 2014-06-12 · tennessee's unemployment...

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