Reports

This audit report is the fifth and final in a series of audit reports on Michigan Unemployment Insurance Agency (UIA) claims processing during the COVID-19 pandemic. This report identifies that Michigan's UIA did not accurately assess fraud penalties on claims when it determined intentional misrepresentation occurred, and estimates the agency undercalculated penalties on these claims by nearly 50 percent.

The objective of this audit was to determine whether the Department of Commerce, Division of Employment Security (DES) limited improper payments to less than 10 percent of paid claims as required by the U.S. Department of Labor, and if not to identify the impact and causes of improper payments. DES reported that the improper unemployment insurance payment rate averaged 18 percent during the period of April 1, 2016, through March 31, 2021. The Auditor noted that DES management should implement U.S. Department of Labor recommendations, best practices, and strategies to limit DES’s improper...

The Mississippi Department of Employment Security (MDES) administers Mississippi’s unemployment benefits programs. With the influx of jobless claims and COVID relief aid as a result of the pandemic, total unemployment benefit claims increased from $59.6 million in FY 2019 to $2.1 billion in FY 2020. With this infusion of money came massive fraud and misspending. For example, from FY 2020 to FY 2021, known overpayments increased from $118 million to $474 million. The massive loss of money from Mississippi’s unemployment fund is partially the result of MDES bypassing or altering their own...

Between December 2020 and September 2021, Central Texas Allied Health Institute (CTAHI), a nonprofit City of Austin contractor, committed fraud by misrepresenting over $1.1 million in financial transactions across three contracts with Austin Public Health. In total, CTAHI was improperly paid roughly $417,000 because of its fraudulent contract claims. In addition, CTAHI appears to have overstated its total vaccination numbers and fabricated patient information under its contract to provide COVID-19 vaccines.

On February 8, 2022, Pinecrest Supports and Services Center (PSSC) Regional Administrator Shannon Thorn notified the Louisiana Legislative Auditor (LLA), in writing, of a possible misappropriation of public funds by then PSSC Police Captain David Patterson. LLA initiated this investigative audit to determine the extent to which Mr. Patterson recorded overtime hours he did not work. From July 2020 to December 2021, Mr. Patterson recorded and was paid $15,099 for 391 hours of COVID-19 overtime on weekend days that he either did not work or failed to go through PSSC’s mandatory COVID-19 screening...

This investigative audit was performed in accordance with Louisiana Revised Statutes 24:513, et seq. to determine the validity of complaints we received. The procedures we performed primarily consisted of making inquiries and examining selected financial records and other documents and do not constitute an examination or review in accordance with generally accepted auditing or attestation standards. The Washington Parish Fire Protection District No. 7 (District 7) Secretary provided inaccurate and incomplete information to the Louisiana Workforce Commission to obtain COVID-19 pandemic...

The objective of this audit is to determine whether cardholders used the Government Purchase Card to support DoD's response to the pandemic in accordance with Federal and DoD policies. We may revise the objective as the audit proceeds, and we will also consider suggestions from management for additional or revised objectives.

From May 21, 2021 to November 9, 2021, the Louisiana Department of Education (DOE) paid $486,050 on two emergency contracts without first obtaining the Louisiana Board of Elementary and Secondary Education’s (BESE’s) approval. The Louisiana Administrative Code requires that professional and consulting services contracts recommended by the Superintendent of Education at, or above, a certain amount (currently $50,000) be approved by BESE. By paying contractors for professional and consulting services prior to obtaining BESE’s approval, DOE may have violated a provision of the Louisiana...

This audit report provides the results of our evaluation of the Louisiana Workforce Commission’s Unemployment Insurance program and federally-funded COVID-19 pandemic-related unemployment assistance program. The purpose of this audit was to determine if apparently ineligible employees of the State of Louisiana were paid unemployment benefits Overall, we found that, for the period of February 2, 2020, through July 24, 2021, LWC made approximately $6.1 million in State and Federal unemployment benefit payments to 1,054 state employees who do not appear to have been eligible for these programs...

During the COVID-19 pandemic, unemployment in Colorado and nationwide led to an increase in claims for benefits. For example, the Department received 1,100 percent more claims in Calendar Year 2020 than it received in Calendar Year 2019.

On October 27, 2020, the Employment Security Department (ESD) notified our Office regarding a potential loss of public funds, as required by state law. Our investigation determined a misappropriation of unemployment insurance benefit funds occurred at ESD, totaling $315,282, and that ESD made an additional $121,503 in questionable payments related to this situation between January 1, 2020, and December 31, 2020. ESD also referred the case to the U.S. Department of Labor’s Office of Inspector General and the Federal Bureau of Investigation for investigation.

The COVID-19 Pandemic presented the Department with many challenges and obstacles including a sharp increase in the volume of unemployment claims as well as the expansion of regular unemployment benefits by the federal government. The Department did not have the man-power or technology resources to adequately deal with this drastic increase in claim activity and the addition of new federal unemployment funding. The Department’s legacy unemployment System, Ohio Job Insurance (OJI), has been in place since 2004. Due to its age and functionality, it was unable to handle the increased volume of...

The COVID-19 pandemic drove the Office of the New York State Comptroller to move forward creatively and identify new ways to tap into and analyze data. Auditors and examiners pursued increased data analysis and used a wider variety of data sources in audit planning and risk assessment, including the Statewide Financial System, First New York data warehouse, New York Benefits Eligibility and Accounting System, CVS Health, National Highway Traffic Safety Administration, and the U.S. Department of Labor’s Employment and Training Administration, as well as internal State agency data.

The OIG is conducting an audit of the Office on Violence Against Women’s Grant Administration due to the COVID-19 Pandemic.  The preliminary objectives are to assess: (1) the grant administration and monitoring during the pandemic and (2) the guidance and assistance provided to grant recipients for addressing any increased risks to effective program implementation and to violence against women.

Based on our audit of the State’s Comprehensive Annual Financial Report, we reported internal control weaknesses and instances of noncompliance over financial reporting. For example, the Department of Economic Security did not put all critical identity-verification or other anti-fraud measures in place before paying federal CARES Act unemployment insurance benefits and reported it paid over $4 billion in fraudulent identity theft unemployment insurance benefits claims through September 4, 2021, when the benefits ended.

We found that the Department failed to implement general Information Technology controls over the Pandemic Unemployment Assistance System, The Department failed to ensure Pandemic Unemployment Assistance claimants met eligibility requirements, The Department did not have sufficient internal control over the determination of accruals for payments related to both the Unemployment Insurance program and the Pandemic Unemployment Assistance program.

As authorized by state law, our office conducted a state high risk audit of the Department of Health Care Services’ (Health Care Services) management of federal funds related to the COVID-19 public health emergency that began in 2020. Health Care Services administers the Medi-Cal program, which received a significant increase in federal support to respond to the emergency. The following report details our conclusion that Health Care Services is not doing enough—notwithstanding the emergency—to resolve eligibility questions about Medi-Cal beneficiaries and avoid federal financial penalties...

The Office of the Inspector General recently concluded an investigation to determine if an applicant for County restaurant relief grants provided false or misleading information on grant applicants to secure pandemic-related grant funds. We found that the applicant received $10,000 from the County's Public Health Emergency Grant Program, $3,094.96 from the County's Reopen Montgomery program, and $10,000 from phase one of the Montgomery County Economic Development Corporation Restaurant Relief program.

The preliminary objectives of this audit cover the extended unemployment and sickness benefits that were appropriated through the CARES Act, CARWA, and ARPA to determine if (1) they were accurately expended, recorded, and reported and (2) internal controls were effective, including fraud controls.

The purpose of this audit was to identify potentially improper payments the Louisiana Workforce Commission (LWC) made to deceased individuals. We found that, of the approximately $8.57 billion in State and Federal Unemployment Insurance (UI) benefit payments made by LWC, approximately $1.08 million (0.013%) was paid to 374 individuals after they died. Of that amount, $629,091 in payments could not have been prevented, $337,007 of the payments should have been prevented by LWC’s current controls, and $123,194 could have been prevented if LWC conducted a weekly match with the Louisiana...

The Office of Inspector General will conduct an evaluation of SBA’s awards made to Highlight Technologies LLC to meet emerging needs related to impacts of COVID-19. Our project is part of a series of reviews of contracts SBA awarded to support CARES Act and other COVID-19 related legislation programs. Our objective is to determine if SBA issued the blanket purchase agreement and contract modifications in accordance with federal laws, regulations, and internal guidance.

The Office of Inspector General Audits Division will perform an evaluation of the Small Business Administration’s implementation of the Restaurant Revitalization Fund. Our objectives are to determine if SBA designed the program to (1) align with the American Rescue Plan Act requirements including whether designated groups were prioritized and (2) minimize the risk of financial loss.

The purpose of this audit was to identify potential improper payments the Louisiana Workforce Commission made to incarcerated individuals who, according to LWC policy and state law, were ineligible to qualify for Unemployment Insurance and federally funded COVID-19 pandemic-related unemployment assistance programs. We found that LWC made approximately $6.2 million in State and Federal UI payments to 1,195 incarcerated individuals who do not appear to have been eligible for the benefits. We found that 81 percent identified through this analysis qualified through the Federal UI program designed...

This report contains the results of our investigation of the illegitimate unemployment claims and payments at the Department from January 1, 2020 through December 31, 2020. The purpose of our investigation was to determine if a misappropriation had occurred and to provide the Department with recommendations to improve internal controls.

The novel coronavirus quickly became a global pandemic in 2020. In March 2020, Congress passed the CARES Act to help provide support for those affected by the pandemic. Washington’s Employment Security Department administers the state’s unemployment compensation program. From early in the pandemic, news organizations reported on customer service delays and fraud in Washington’s Unemployment Insurance program. Th is audit examines the scope of and reasons behind substantial fraud and customer service delays in the state’s unemployment benefits program during the COVID-19 pandemic.

Based on our risk assessment for the years ended June 30, 2020, 2019 and 2018, the areas examined were those representing the highest risk of fraud, loss, abuse, or noncompliance. We examined the following areas during this audit period. Accounts payable – general disbursements and electronic funds transfers, Payroll – gross wages and overtime, Paid family and medical leave – billing and compliance with eligibility, Procurement – information technology contracts and change orders.

This report provides the results of our evaluation of select Unemployment Insurance programs administered by the Louisiana Workforce Commission (LWC). The purpose of this evaluation was to identify potentially improper payments LWC made to individuals who appear to have been ineligible for unemployment benefits based on their income/

Inspection Notification: SBA’s Handling of Potentially Fraudulent Paycheck Protection Program Loans

This audit attempts to answer the following question. What types of unemployment claims fraud schemes is the Kansas Department of Labor aware of and how are they being addressed?

Since the surge in pandemic‑related California unemployment claims began in March 2020, individuals, news organizations, and law enforcement officials have reported many cases of potential and actual UI fraud. Not surprisingly, the pandemic conditions increased EDD’s UI workloads and also resulted in changes to federal UI benefit programs, both of which have created a greater risk of fraud.

State management is responsible for designing, implementing and maintaining internal controls to ensure the financial statements are fairly presented, and to provide reasonable assurance regarding the reliability of financial reporting and to prevent and detect fraud. We identified deficiencies in internal controls at the Employment Security Department (ESD) that adversely affected the State’s ability to prevent and detect fraud.

This notification was an advisory notice for representatives of all governmental entities to carefully verify information received in an any correspondence received from IWD regarding claims for unemployment insurance benefits, as unknown parties are attempting to file fraudulent unemployment insurance claims as if they were former employees of certain governmental entities.

The OIG initiated this investigation to determine if DPS employees were obtaining a benefit to which they were not entitled. We were additionally concerned that misapplications of policy were leading to improper payments and further adding to the County's COVID-19 debt burden.

The objective of this report was to provide information on the unprecedented number of unemployment claims filed in response to the COVID-19 pandemic, the amount paid in fraudulent claims, and the causes for many fraudulent claims being paid. We found that WorkForce West Virginia Paid Nearly $83 Million in Fraudulent Unemployment Claims During the COVID-19 Pandemic.