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Read our report on six communities’ experiences with pandemic funding and programs, which provides valuable lessons learned to improve federal emergency response programs.

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California State Auditor

Employment Development Department: Significant Weaknesses in EDD's Approach to Fraud Prevention Have Led to Billions of Dollars in Improper Benefits Payments

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.
California State Auditor

State High Risk State Management of Federal COVID-19 Funding

This letter report identifies 18 state agencies that will each be responsible for managing a portion of the federal COVID‑19 funds. Before finalizing our determination to add this issue to the state high risk list, we notified the 18 responsible state agencies about our preliminary determination and invited them to provide their perspective on the issue. We received responses from 12 of the 18 state agencies, and we summarize those responses at the end of this letter.