Form Esd-Ark-501 - Application For Unemployment Insurance Benefits printable pdf download

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

INTRODUCTION

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.

OBJECTIVES

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.

SCOPE AND METHODOLOGY

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.

BACKGROUND

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

ARKANSAS DIVISION OF LEGISLATIVE AUDIT

172 State Capitol, Little Rock, AR 72201

Phone: 501-683-8600 Fax: 501-683-8605

Report ID: IRSA02011

Report Date: February 22, 2012

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