DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 04-96
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	MARY ANN WYRSCH Director Unemployment Insurance Service
SUBJECT	:	Preparation for Revenue Quality Control (RQC) Implementation

1. Purpose. To request the State Employment Security Agencies (SESAs) to complete preparation for RQC implementation and submit workplans for the 1996 RQC review to appropriate Regional Office (RO) staff.

2. References. UIPL No. 32-94 (June 24, 1994), UIPL No. 41-95 (August 24, 1995).

3. Background. The RQC program is a part of the Unemployment Insurance Service's (UIS) new comprehensive performance system (the "UI Performs" system) in which the States and Federal government will work together as partners to strengthen the unemployment insurance (UI) system. Other UI measurement systems such as Benefits Quality Control and Performance Measurement Review will also be a part of "UI Performs". One of the primary goals of the system is to achieve continuous improvement of overall performance quality.

   The RQC program has developed a set of measures of tax program timeliness, accuracy, quality and completeness which are the basis for the tax measures included in Performance Enhancement Tier I and Tier II Measures. Data reporting for use in RQC Computed Measures was phased in January 1, 1995, and is now being reported quarterly. Most of the data elements used in calculating these measures are reported on the revised Form ETA 581. During the next two years a visit will be made to each SESA to develop State specific instructions for validating the data.

   A new Cashiering Program Review has been developed and is currently being pilot tested in several States. The new review examines the timeliness of depositing employer remittances and the accuracy of posting remittances to employer accounts. Lockbox operations and electronic fund transfers are included in this review.

   Also under development is a Field Audit Methods Survey. Both of these new sections will be included in the final RQC Operations Handbook which will be released within the next few months. Findings from the completely phased in 1996 review will be compiled and issued in 1997 as a part of the Performance Enhancement System which will present comprehensive findings of State UI tax and benefit operations.

4. Action Required. The SESA administrators are requested to provide this information to appropriate staff such as RQC Reviewers, UI Tax staff and persons responsible for UI required reports data. Since the RQC program will be completely phased in January 1, 1996, and no longer be a voluntary program, it is essential that States have completed all preliminary work.

   This includes:

   1. making necessary corrections or completing programming for the collection and reporting of the data elements for Computed Measures. Reviewers need to ensure that Form ETA 581 data elements are defined according to Federal definitions. Discrepancies need to be brought to the attention of appropriate State staff.

   2. ensuring that all Acceptance Sample universes are compiled including those for reimbursable employers.

   3. testing universes for the Acceptance Samples. Reviewers should coordinate with appropriate ADP and Regional staff to review data record formatting (dumps) to ensure that all requirements have been met and that contents of the universes are correct.

   As soon as possible, workplans detailing all the steps in the 1996 RQC review should be completed and submitted to appropriate RO staff. This is necessary to enable RO staff to schedule travel to all States within the Region in order to provide technical assistance in implementing the program. Sample workplans were provided during RQC training and are available from your Region.

5. Inquiries. Direct inquiries to your RO.