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U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEUQC

ISSUE DATE

March 1, 1994

RESCISSIONS

None

EXPIRATION DATE

 

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 16-94

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

MARY ANN WYRSCH
Director
Unemployment Insurance Service

 

SUBJECT

:

Additions to RQC Operations Handbook (Core RQC)

  1. Purpose. To provide State employment security agency (SESA) Revenue Quality Control (RQC) staff with three documents, updating the RQC Operations Handbook. Two documents are for inclusion in the draft RQC Operations Handbook: 1) A sample "RQC Annual Report", and 2) a model Field Audit Report form. The third document is a compilation of questions and answers (Q&As) developed during RQC implementation and training sessions.

  2. References. UIPL NO. 42-93 (8/31/93), UIPL NO. 18-93 (3/18/93), MTL NO. 1470 (12/23/93).

  3. Background. When the draft Core RQC Handbooks were distributed, Appendix D, Example of Annual Report, was not ready for distribution. The sample report, requested by Reviewers as guidance on a format for consistency in annual reporting, has now been designed with the cooperation and recommendations of ETA Regional Office RQC advisors and several RQC reviewers. A draft model Field Audit Report has also been designed to help field auditors meet Employment Security Manual (ESM) audit documentation requirements and assist RQC reviewers with documentation verification tests. The Q&As are a compilation of issues of general program significance and contain some items that have been previously distributed informally.

  4. RQC Annual Report. The sample report is a composite document which presents style and language suggestions for the final step in a reviewer's annual appraisal of the State's UI tax operations. Percentages shown in the computed measures are for illustration purposes only. The report comprises two sections, an Executive Summary and a detailed report of the reviewer's findings and conclusions and any comments of tax unit supervisors. The Summary provides State administrators with an overview of the RQC review. The detailed report contains the specific findings, conclusions and, where appropriate, the recommendations of the reviewer for each tax function reviewed. The sample report should be inserted as Appendix D of the Handbook.

  5. Field Audit Report. The model field audit report (not a required form) is provided as a guide for auditors to assure that each field audit complies with ESM and RQC documentation requirements. The format is designed to guide auditors through the nine major RQC documentation requirements, which may not have been received in time for incorporation into State audit manuals during the period of the RQC review. The report, when properly completed, can be used by the reviewer as prima facie evidence that the audit meets the related criteria used to evaluate the State's audit performance. The model Field Audit Report can be included in Handbook, Appendix E, along with the Employment Security Manual - Field Audits.

  6. Questions and Answers. The Q&As document is a compilation of the significant questions and issues that have been raised during the implementation of RQC. The document has been formatted so that Q&A items relating to specific subjects are maintained in the same sequence as the material is arranged in the handbook. Additions to the Q&As will be distributed periodically between updates of the RQC Operations Handbook and will follow the numerical sequence of the attached Q&As.

  7. Action Required. SESA Administrators are requested to provide the attached reports to appropriate UI tax staff and RQC staff for inclusion in the Revenue Quality Control Operations Handbook, Appendices, Appendix D and Appendix E addendum. Three copies are included for your convenience.

  8. Attachments.

    1. Appendix D, Model RQC Annual Report;

    2. Appendix E, Model Field Audit Report; and

    3. Questions and Answers compilation.

NOTE: Attachments not available to DMS