The Office of the State Auditor came out with a report today stating that the Division of Employment Security has failed to implement federally required programming changes to identify instances when it overpaid federal unemployment benefits. The audit stated that the cost of over payments is estimated to be about $689,475, or 0.5% of Federal unemployment payments in North Carolina. The News and Observer reports:
A state audit of the Employment Security Commission found that the agency, which recently was renamed the Division of Employment Security, failed to implement programming changes to identify instances when it overpaid federal unemployment benefits.
The auditor’s office said the agency also failed to make such fixes in the two years before this latest audit, which is for the fiscal year that ended June 30.
A failure to fix the problem means the agency has made no attempts to recover the overpayments, which the audit notes is a requirement of the federal stimulus bill, the American Recovery and Reinvestment Act. The ESC estimates the overpayments amounted to $689,475, or .5 percent of the total Federal Additional Compensation payments the agency made.