Summary: GAO reviewed the Department of Labor's (DOL) guidance and oversight of state unemployment insurance (UI) programs.
GAO found that: (1) the DOL UI Quality Appraisal Program does not provide specific, meaningful state performance goals; (2) DOL plans to implement a UI Quality Control Program to ensure that state systems for collecting UI taxes from employers are effectively implemented; (3) DOL has reduced its control over state UI administrative expenses and its reporting and administrative requirements; (4) some states have active collection procedures for UI taxes, while some states have more passive systems that signal employers that UI tax nonpayment will be tolerated; (5) DOL has sponsored a number of pilot projects to improve state UI tax collection techniques, but most states are not implementing improved techniques; (6) most states were receptive to improving their collection procedures, but might be reluctant to implement improvements because any resulting administrative cost savings would accrue to the federal UI Fund, not the states responsible for the savings; and (7) DOL has relied excessively on states' Single Audit Act audits for program oversight.