Form Esd-Ark-501 - Application For Unemployment Insurance Benefits


Special Report
Legislative Joint Auditing Committee
February 24, 2012
Arkansas Department of Workforce Services
Review of the Unemployment Insurance Benefit Claims
Process, Overpayments, and Advanced Federal Funds
This report is issued to provide the Legislative Joint Auditing Committee with details about the unemployment
insurance benefit process used by the Arkansas Department of Workforce Services (DWS), the $161.3
million in estimated DWS benefit overpayments reported by the United States Department of Labor (USDOL)
as a performance measure, and the $360 million in federal funds borrowed by DWS for benefit payments that
is expected to be repaid with interest by 2015. The results of our review are summarized in the Conclusion
section on page 7.
The objectives of the report are as follows:
Describe the unemployment insurance claims filing and approval process.
Provide an explanation of the benefit overpayment recovery process and the amount of Agency
benefit overpayments.
Determine the amount of federal funds advanced to DWS for unemployment benefits during the
review period as well as the amount that remains outstanding.
This review covers the period July 1, 2009 through June 30, 2011. DWS staff were interviewed, and relevant
DWS policies and procedures were reviewed. Financial information provided by DWS as well as the USDOL
was also reviewed. DWS financial statements are provided in Appendix A.
The methodology used in conducting this review was developed uniquely to address the stated objectives
and, therefore, was more limited in scope than an audit or attestation engagement performed in accordance
with Government Auditing Standards issued by the Comptroller General of the United States.
Unemployment insurance benefits provide temporary financial assistance to eligible workers who lose
employment. As identified in Exhibit I on page 2, DWS has 31 local offices providing benefit services. Due
172 State Capitol, Little Rock, AR 72201
Phone: 501-683-8600 Fax: 501-683-8605
Report ID: IRSA02011
Report Date: February 22, 2012


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