The Benefit Accuracy Measurement (BAM) Program is designed to prevent errors and fraud in the Unemployment Insurance Program. Each week, a random sample of claimants is audited to check the accuracy of the payments they receive. Additionally, a random sample of claimants who were denied benefits is reviewed to ensure the accuracy of those determinations. This auditing process helps improve the detection, prevention, elimination, and recovery of improper payments.
What does an audit include?
- Review of Records: Includes claimant statements, employer records, and Unemployment Insurance Division records.
- Claimant Interview: Claimants are interviewed to gather information about their claim.
- Eligibility Investigation: Verifies that claimants meet the eligibility requirements for unemployment benefits.
- Payroll Records Verification: Confirms the accuracy of the wages reported by the claimant.
- Separation Investigation: Checks the reasons provided for the claimant’s unemployment.
- Work Search Contacts Verification: Ensures that claimants are actively seeking work.
- Unemployment Insurance Division Records Review: Assesses the actions and records of the division for accuracy.
What is the audit process?
- Questionnaire Completion: Claimants fill out a detailed questionnaire about their claim.
- Employer Verification: Former employers are contacted to verify payroll records and reasons for separation.
- Work Search Verification: Employers listed by the claimant verify that the claimant made job inquiries.
- Eligibility Checks: Any issues regarding eligibility are thoroughly investigated.
How are cases selected for audit?
- Weekly Lists: A list of claimants who received or were denied unemployment insurance payments in the preceding weeks is created each week.
- Random Sampling: Sample claim records are chosen randomly from these lists.
- Repeated Audits: A claim may be audited more than once as new cases are selected weekly.
How are claimants notified of an audit?
- Post-Week Notification: Claimants are notified that a particular week is being audited after that week has passed.
- Detailed Questionnaire: Claimants are asked to complete a detailed questionnaire in person, by phone, or by mail.
- Interview Arrangements: If an in-person interview is needed, the investigator will arrange to meet the claimant outside of work hours if they have returned to work.
Why is the audit being made?
- Correct Payment Validation: Ensures that claims are paid or denied correctly; adjustments are made for any discrepancies.
- Program Improvement: Provides information to administrators to help improve the Unemployment Insurance Program.
What is the end result of the audit?
- Determinations: Decides whether benefits were paid properly or improperly, identifying if the error was made by the claimant, the division, or the employer.
- Statistical Analysis: Produces information on rates, responsibility, and causes of overpayments and underpayments.
How are employers involved?
- Wage Verification: Employers confirm the past or present wages of audited claimants.
- Work Search Verification: Employers verify that claimants inquired about or applied for work as reported.
- Separation Verification: Employers confirm the reasons for reduced hours or unemployment.
How does the BAM program benefit employers?
- Reduced Taxes: Better detection, collection, and prevention of improper payments can lead to decreased benefit payments, which can reduce employer taxes.
- Long-term Benefits: Ensures a fair and efficient unemployment insurance system, benefiting both employers and employees.
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