Thursday, October 11, 2012

Maryland Unemployment Overpayments

    Maryland recently issued an audit of its unemployment system.  The audit found that the Department of Unemployment Insurance (Department) was likely overpaying unemployment benefits to individuals who were actually working.  The Department cross-checks its list of benefit recipients with a nationwide list of new hires (by looking for matching social security numbers).  The audit checked the cross checking done in the third quarter of 2010 and found that the Department only pursued 43 of 71 individuals who cam up as a match.  The Department had not pursued the other 28 matched who received $167,200 in benefits.

    Other audit highlights:

  • The Department was also not doing a great job cross-checking its list of benefit recipients with death records, incarceration records, and records of current State employees.
  •  A Department programming error allowed employers to receive improperly a certification for a tax credit.
  • The Department had allowed improper access to critical data files.
The Department accepted all or nearly all of the audit's findings, stating that it has addressed or was in the process of addressing the identified issues.  

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