Unemployment Compensation: Payments to Ineligible Former Employees
GGD-87-17
Published: Dec 19, 1986. Publicly Released: Dec 19, 1986.
Skip to Highlights
Highlights
In response to a congressional request, GAO reviewed six agencies' unemployment compensation procedures and payments to their former employees.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Navy | The Secretaries of the Army, Health and Human Services, the Interior, the Navy, and the Treasury, and the Administrator of Veterans Affairs should establish effective internal control systems to ensure that states are provided accurate, complete, and timely wage and separation information for former employees who apply for benefits, and appeal decisions when it appears that the state misinterpreted the facts or the determination is not in accordance with state law. The agencies' evaluations and reports required by FMFIA should specifically address the status of internal controls for avoiding improper payments in the unemployment compensation program and the agencies' plans for and accomplishments toward developing effective internal control systems. |
Closed – Implemented
OSD sent, on June 22, 1988, a memo to all DOD components that outlines the new department policy for handling unemployment claims. This policy assigns responsibility to each component for centralizing these activities, and making sure that they are handled properly. The memo also establishes new guildelines for appealing these cases.
|
| Department of the Army | The Secretaries of the Army, Health and Human Services, the Interior, the Navy, and the Treasury, and the Administrator of Veterans Affairs should establish effective internal control systems to ensure that states are provided accurate, complete, and timely wage and separation information for former employees who apply for benefits, and appeal decisions when it appears that the state misinterpreted the facts or the determination is not in accordance with state law. The agencies' evaluations and reports required by FMFIA should specifically address the status of internal controls for avoiding improper payments in the unemployment compensation program and the agencies' plans for and accomplishments toward developing effective internal control systems. |
Closed – Implemented
The Office of the Secretary of Defense (OSD) sent a memo to all DOD components that outlines the new department policy for handling unemployment claims. This policy assigns responsibility to each component for centralizing these activities, making sure that they are handled properly, and requires proper validation of Labor billings. The memo establishes guidelines for appealing these cases.
|
| Department of Health and Human Services | The Secretaries of the Army, Health and Human Services, the Interior, the Navy, and the Treasury, and the Administrator of Veterans Affairs should establish effective internal control systems to ensure that states are provided accurate, complete, and timely wage and separation information for former employees who apply for benefits, and appeal decisions when it appears that the state misinterpreted the facts or the determination is not in accordance with state law. The agencies' evaluations and reports required by FMFIA should specifically address the status of internal controls for avoiding improper payments in the unemployment compensation program and the agencies' plans for and accomplishments toward developing effective internal control systems. |
Closed – Implemented
The Department of Health and Human Services (HHS) revised its Personnel Manual Instructions (HHS 86.19) to provide guidance and accountability for the program. HHS also initiated an appeal process, and will include unemployment insurance weaknesses within the FMFIA report.
|
| Department of the Interior | The Secretaries of the Army, Health and Human Services, the Interior, the Navy, and the Treasury, and the Administrator of Veterans Affairs should establish effective internal control systems to ensure that states are provided accurate, complete, and timely wage and separation information for former employees who apply for benefits, and appeal decisions when it appears that the state misinterpreted the facts or the determination is not in accordance with state law. The agencies' evaluations and reports required by FMFIA should specifically address the status of internal controls for avoiding improper payments in the unemployment compensation program and the agencies' plans for and accomplishments toward developing effective internal control systems. |
Closed – Implemented
The Department of the Interior stated that its contractor-assisted program solved the internal control weaknesses identified in the report and it saw no need for further action. The contractor has been awarded about $1.9 million since January 1, 1986.
|
| Department of the Treasury | The Secretaries of the Army, Health and Human Services, the Interior, the Navy, and the Treasury, and the Administrator of Veterans Affairs should establish effective internal control systems to ensure that states are provided accurate, complete, and timely wage and separation information for former employees who apply for benefits, and appeal decisions when it appears that the state misinterpreted the facts or the determination is not in accordance with state law. The agencies' evaluations and reports required by FMFIA should specifically address the status of internal controls for avoiding improper payments in the unemployment compensation program and the agencies' plans for and accomplishments toward developing effective internal control systems. |
Closed – Implemented
Treasury has delegated, to its Bureau, the decision to either use the National Finance Center's unemployment program or contract the function to an expert contractor.
|
| Veterans Administration | The Secretaries of the Army, Health and Human Services, the Interior, the Navy, and the Treasury, and the Administrator of Veterans Affairs should establish effective internal control systems to ensure that states are provided accurate, complete, and timely wage and separation information for former employees who apply for benefits, and appeal decisions when it appears that the state misinterpreted the facts or the determination is not in accordance with state law. The agencies' evaluations and reports required by FMFIA should specifically address the status of internal controls for avoiding improper payments in the unemployment compensation program and the agencies' plans for and accomplishments toward developing effective internal control systems. |
Closed – Implemented
The Veterans Administration (VA) revised its UC7E procedures by updating VA Manual MP-5, part 1, chapter 850, included UC7E in its personnel management evaluation program, and reinforced field facility responsibilities through periodic information bulletins.
|
| Department of Labor | The Secretary of Labor should, in keeping with his overall responsibility for agencies' unemployment compensation programs, again send a memorandum to all federal agencies providing information on how to reduce improper unemployment benefits. |
Closed – Implemented
On October 6, 1986, the Assistant Secretary of Labor sent a memorandum to key policy officials in 75 major federal agencies.
|
| Department of Labor | The Secretary of Labor should evaluate the use of the contractors' services used by the Department of the Interior and other agencies to determine if it can serve as a solution for avoiding improper benefit payments. |
Closed – Implemented
The Department of Labor did not agree with this recommendation and plans no action.
|
Full Report
Office of Public Affairs
Topics
Claims processingCompensation claimsCost controlErroneous paymentsstate relationsInformation disclosureInternal controlsUnemployment compensation programsUnemployment insurance benefitsFederal employees