In this issue:

• Arkansas achieves 389 percent increase
• Alabama set to implement Barts and Recover to improve program
• Clock is running for agencies to obligate UI integrity funds
• Aware: A labor market information tool
• Idaho selects On Point to conduct UI evaluation
• UI information technology security funds available
• On Point Technology demonstrates at NASWA Winter Policy Forum in DC
• SSN abuse rampant on Internet
• Kentucky using color to up employer response

Welcome to the April 2007, issue of BullsEye, the On Point Technology newsletter. Our goal is to keep you up-to-date on the latest unemployment insurance news and developments at On Point Technology.

Arkansas achieves 389 percent increase

The Arkansas Benefit Payment Control unit recently increased the dollar amount of overpayments identified from the quarterly benefit/wage crossmatch by 389 percent with no additional increase in resources. Since the initial implementation of Barts, On Point Technology’s advisors have continued to assist Arkansas in achieving such success, as part of On Point Technology’s Enterprise Product Assurance Program.

In 2006, On Point Technology and Arkansas’ management teams analyzed claimants’ historical FraudX scores with the actual overpayments identified by case. (FraudX is the crossmatch that Barts provides that selects issues by computing the likelihood of fraud for each issue.) The greatest return on investment of BPC resources is generated by focusing on the middle of the bell curve. With this information in hand, the BPC unit consciously decided to shift their attention. As a result, the overpayment dollars per case for Tips & Leads decreased by $30 but the benefit/wage crossmatch increased by $334.

On Point Technology Customer Service Manager Ed Gafron stated, “This story captures the essence of our Enterprise Product Assurance Program. Unlike many of the consultants working in our industry, our interests continue well after the software is turned on.”

On Point Technology and the State of Arkansas aren’t finished yet. “We believe several opportunities exist to continue to improve our operations. We are going to work with On Point Technology throughout 2007 to improve the employers’ response to our wage audit notices,” stated Don Denton, Esq., Associate General Counsel, Arkansas Department of Workforce Services.

Alabama set to implement Barts and Recover to improve program

Norm Harelik, Manager of On Point Technology’s Business Analysis Team, stated, “What really gets me excited after 30 years in the unemployment insurance (UI) industry is not just the Web browsers, graphical bells and whistles, or latest relational database technology. From my perspective, anyone in the IT industry can provide those. Although we’re certainly proud of the technology in our Barts and Recover products, it’s the opportunity to use these enhanced features to introduce new business processes in the UI industry which excites me. I believe there are several ideas Alabama will be able to introduce that will improve the quality of their program and their trust fund integrity, while increasing service to both their claimants and employers. We look forward to working with Martha Johnson and Thomas Daniel to turn these ideas into reality.”

Clock is running for agencies to obligate UI integrity funds

State Workforce Agencies have until September 30, 2007, to obligate funds for unemployment insurance (UI) integrity programs that were distributed via UI Field Memoranda 12-05 and 13-05. These funds may be subject to recovery if the obligation deadline is not met, and extensions are approved only as it regards the liquidation deadline of December 30, 2007.

Several states have committed these funds to acquire On Point Technology’s package software applications: Aware, Barts, and Recover. Not only do the products meet the requirements established by the United States Department of Labor Employment and Training Administration for the use of these funds, they can also be installed in as little as four months for Aware, six months for Barts and eight months for Recover.

For more information about these products please contact Bob Yokavonus at 908-526-0426 or robert.yokavonus@onpointtech.com.

Aware: A labor market information tool

Many states may think of On Point Technology’s Aware program as just a fraud detection tool, but it is so much more.

One of the exciting ways that Aware’s InfoBase technology may be utilized is in gathering labor market information (LMI). LMI staff have standard queries they run on a regular basis to capture their state’s labor market statistics. However, when grant writers, directors or legislative bodies request additional information, the expense can be enormous. These requests are usually urgent and needed “yesterday.” Valuable IT staff time must be used to write queries, and multiple man hours are eaten up in order to pore over written reports.

States that have installed Aware know there is no further expense and only a few minutes’ time is needed to gather any statistics needed. The InfoBase technology behind Aware allows LMI staff to customize queries and get statistics within minutes in an accurate, easily readable format.

If you’re interested in learning more about Aware or viewing a demonstration, please contact Bob Yokavonus at 908-526-0426 or robert.yokavonus@onpointtech.com.

Idaho Selects On Point for UI evaluation

On Point Technology is pleased to announce that the Idaho Department of Commerce and Labor has awarded us the opportunity to conduct an Independent Validation and Verification of its unemployment insurance data validation system, an evaluation required by the U.S. Department of Labor Employment and Training Administration. We look forward to working with the Boise staff to bring the effort to a timely and successful conclusion. On Point Technology was selected as a result of a competitive procurement conducted by the Idaho Division of Purchasing.

Alert: UI information technology security funds available

The U.S. Department of Labor Employment and Training Administration (DOL/ETA) has issued Unemployment Insurance Program Letter 16-07 (UIPL 16-07), which solicits Supplemental Budget Requests (SBRs) to improve Information Technology Security.

ETA will award funds to selected State Workforce Agencies to address the UI/IT security weaknesses identified by recent IT security audits. Each SBR is capped at $100,000 and proposals are due in the National Office by May 25, 2007. A full copy of UIPL 16-07 can be found at http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2328.

On Point Technology can provide advice on IT security issues. To arrange for assistance, contact Bob Yokavonus at 908-526-0426 or e-mail robert.yokavonus@onpointtech.com.

On Point Technology demonstrates at NASWA Winter Policy Forum in DC

Last month, On Point Technology representatives Ron Burkhart, Woody Tucker and Bob Yokavonus attended the annual NASWA Winter Policy Forum in Washington, DC. They demonstrated On Point Technology’s suite of UI Integrity software products—Aware, Barts, and Recover—to many of the state agency and federal personnel in attendance.

We appreciate the fact that so many people took the time to stop by our booth for a demonstration and to discuss some very serious and timely topics. The most frequently discussed topics included fraud and non-fraud overpayments, identity theft, organized fraud schemes and the recouping of benefits improperly collected.

As we have come to expect, Rich Hobbie and the staff from NASWA did an excellent job of preparing a pertinent and timely agenda and securing top notch speakers to present the topics selected. Our thanks also go to Rich and staff for the quality of the event.

SSN abuse rampant on Internet

The Social Security Administration’s Office of Inspector General says that 16 percent of the 99,000 fraud cases it investigated in the 12-month period that ended September 30, 2006, involved the misuse of Social Security numbers (SSNs). One case involved an identity theft ring in central Florida where 12 people were convicted, sentenced to prison and ordered to repay more than $12 million.

It should come as no surprise that many people unknowingly have their SSNs posted somewhere on the Internet. This obviously creates a potential data bonanza for identity thieves. One county in the State of Washington identified 61 types of documents, such as tax liens and marriage certificates, that contained SSNs and were posted on public Internet sites. What a simple way for a unemployment insurance (UI) benefits claim scammer to gather the basic information necessary to initiate a scheme!

If you’re worried about the security of your SSN or credit card numbers, there is a new tool where you can check, at no cost, to see if your number is one that is in a public domain. The online search tool can be found at www.StolenIDSearch.com.

Kentucky using color to up employer response

The Commonwealth of Kentucky was unhappy with the response rate on their Notices of Assessment being sent to employers for tax liability. In researching collection methods, it was found that increases in response could easily be boosted by adding a little color to the assessment.

Kentucky began an experiment by using colored highlighting pens. They manually highlighted the business name, the law citation, the balance due, and the date the payment was due on every Notice of Assessment sent. In just one month, a 20 percent increase in employer response was seen.

After seeing the results, color printers were purchased and used to highlight the same areas. Light blue, light green, yellow and pink earned the most response, and after many months of using the highlighting method, it was determined that the increase in employer response ranged from 20 to 25 percent. Kentucky makes sure that the amount due is a different color from the remainder of the highlighting to give it extra emphasis.

Kentucky has been using this method for several years now with continued success.