Proposed Information Collection Request Submitted for Public Comment and Recommendations; Extension of the Unemployment Insurance (UI) Revenue Quality Control Program (RQC); Notice

DEPARTMENT OF LABOR

Employment and Training Administration

Proposed Information Collection Request Submitted for Public

Comment and Recommendations; Extension of the Unemployment Insurance

(UI) Revenue Quality Control Program (RQC); Notice

SUMMARY: The Department of Labor, as part of its continuing effort to

reduce paperwork and respondent burden, conducts a preclearance

consultation program to provide the general public and Federal agencies

with an opportunity to comment on proposed and/or continuing

collections of information in accordance with the Paperwork Reduction

Act of 1995 (PRA95) (44 U.S.C. 3506(c)(2)(A)). This program helps to

ensure that requested data can be provided in the desired format,

reporting burden (time and financial resources) is minimized,

collection instruments are clearly understood, and the impact of

collection requirements on respondents can be properly assessed.

Currently, the Employment and Training Administration is soliciting

comments concerning the proposed revision and extension of the UI RQC

Program. A copy of the proposed information collection request can be

obtained by contacting the employee listed below in the contact section

of this notice.

DATES: Written comments must be submitted on or before July 8, 1996.

Written comments should:

--Evaluate whether the proposed collection of information is necessary

for the proper performance of the functions of the agency, including

whether the information will have practical utility;

--Evaluate the accuracy of the agency's estimate of the burden of the

proposed collection of information, including the validity of the

methodology and assumptions used;

--Enhance the quality, utility, and clarity of the information to be

collected; and

--Minimize the burden of the collection of information on those who are

to respond, including the use of appropriate automated, electronic,

mechanical, or other technological collection techniques or other forms

of information technology, e.g., permitting electronic submission of

responses.

ADDRESSES: Eve MacDonald, Unemployment Insurance Service, Employment

and Training Administration, Department of Labor, Room C 4514, 200

Constitution Ave, N.W., Washington, D.C., 20210; 202 219-5309 (this is

not a toll-free number).

SUPPLEMENTARY INFORMATION:

I. Background

Since 1987, all State Employment Security Agencies (SESAs) except

the Virgin Islands have been required by regulation at 20 CFR 602 to

operate a Quality Control program to assess their Unemployment

Insurance tax and benefit programs. Revenue Quality Control (RQC)

developed new measures for tax performance to replace those previously

gathered under the Quality Appraisal (QA) system. RQC is designed to

assess the major internal UI tax functions by utilizing three

methodologies: (1) Computed Measures are indicators of timeliness and

completeness based on data automatically generated via the existing ET

581 automated report. (2) Program Reviews assess accuracy through a

two-fold examination: (a) ``Systems Reviews'' examine tax systems for

the existence of internal controls; (b) small ``Acceptance Samples'' of

those systems' transactions are then examined to verify the

effectiveness of those controls. (3) Through the use of non-evaluative

surveys, RQC documents the methods and procedures the SESA uses to

manage its tax operation. Best practices are identified and this

information is shared with other SESAs.

The last tax function to be covered by RQC, Cashiering, has

recently been developed and transmitted to all States. As with the

other sections of RQC, the Cashiering section will include a Systems

Review. Since the quality of payment applications will be evident

through the Acceptance Samples of other sections of RQC, there will be

no Acceptance Sample specific to Cashiering. Instead, a measure is in

place to identify timeliness of deposit of employer payments into the

clearing account. Deposit activities dictate that the measurement be

conducted manually; therefore, an Estimation Sample (ES) review,

similar in form to

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the Quality Appraisal review for deposit promptness, has been

developed.

II. Current Actions

This is a request for OMB approval under the Paperwork Reduction

Act of 1995 (44 USC 3506 (c)(2)(A)) of an extension to an existing

collection of information previously approved and assigned OMB control

No. 1205-0332. A revision is also proposed to substitute the RQC design

for measuring cashiering timeliness for the Quality Appraisal design.

The proposed revision should have little or no impact on total burden

hours because it replaces the sample used in the Quality Appraisal

cashiering review and no longer includes an additional Acceptance

Sample of 60 to test for accuracy in posting.

The overall approach used in RQC sampling is similar in function to

the QA sampling approach for Cashiering. There are, however, some

differences in estimation sampling that enhance the RQC review

approach:

Deposit timeliness will be measured during the second

quarter report period instead of the third quarter report period

measured by QA. More payments are typically received for the second

quarter, providing a more accurate reading of the SESAs' effectiveness;

States have the flexibility to choose the period during

which the ES will be selected (the QA time period was the same for all

States). This should allow States to draw the sample from the most

representative flow of remittances;

A standard sample size has been established, to give all

States' estimates similar precision;

A less cumbersome, more direct method of calculating

timeliness has been developed for the ES than the one used in the QA;

The ES includes a review of the Cashiering activities

performed by agents of the SESAs previously excluded from QA; and

The new timeliness measure now reflects timeliness of

electronically transferred payments.

Agency: Employment and Training Administration, Department of Labor.

Title: Unemployment Insurance Revenue Quality Control Program.

OMB Number: 1205-0332.

Affected Public: State governments (State Employment Security

Agencies).

Total Respondents: Fifty two State governments.

Frequency: Annually.

Total Responses: Fifty two.

Average Time Per Response: 1750 hours.

Estimated Total Burden Hours: 91,000 hours for 52 States.

Comments submitted in response to this notice will be summarized

and/or included in the request for Office of Management and Budget

approval of the information collection request; they will also become a

matter of public record.

Dated: May 1, 1996.

Mary Ann Wyrsch,

Director, Unemployment Insurance Service.

[FR Doc. 96-11345 Filed 5-6-96; 8:45 am]

BILLING CODE 4510-30-P