This audit found that the Department of Commerce, Division of Employment Security (DES) reported improper unemployment insurance payment rate averaged 18% during the period of April 1, 2016, through March 31, 2021, exceeding the 10% federal improper payment rate allowed by the United States Department of Labor (U.S. DOL). As a result, DES paid approximately $166 million in improper payments over and above the federal improper payment limit during the same time period. DES exceeded the improper payment limit because it did not implement certain U.S. DOL recommendations to reduce improper payments that resulted from (1) work search requirements, (2) benefit year earnings, and (3) separation information issues. Details about each item are provided in the Finding, Recommendations, and Response section of the report. The Department of Commerce agreed with the results of the audit.

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