The audit found that the Department of Commerce (Department), Division of Employment Security (DES) did not fully implement corrective actions from OSA’s March 2022 performance audit concerning the timeliness of first unemployment benefit payments. Specifically, DES did not:

  • Ensure its unemployment benefits claims process is designed to meet the federal timeliness standard.
  • Monitor timeliness of first unemployment benefit payments.
  • Adopt a plan to respond to economic downturns.

As a result, approximately $7.8 million of first unemployment benefit payments were not made in a timely manner as required by federal regulations during the period January 1, 2023, through December 31, 2023.

Additionally, DES remains at risk of not being prepared to provide payments to claimants in a timely manner. For example, during a sudden and or significant increase in unemployment claims during an economic downturn or a natural disaster such as the catastrophic Hurricane Helene.

Details about each item are provided in the Findings and Recommendations section of the report. The Department did not agree with all the findings and recommendations in the report. As a result, the report includes a State Auditor’s Response to ensure readers have complete and accurate information and are not misled.

Division/Office
All/Any Audit Types
Audit Reports
Performance Audits
Has Findings
High Profile
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General Government
First Published