A MarylandReporter.com article spotlights a just-issued Maryland
Office of Legislative Audits' report on state overpayment of unemployment
claims. As the article points out, the Department of Labor, Licensing and
Regulation's Division of Unemployment insurance's (DUI) overpayment receivables
for last year totaled nearly $150 million. About $25 million in overpayments
were recovered.
The Audit report made a handful of findings
regarding the shortcomings of DUI's administrative processes for administering
unemployment benefits. Among those findings that bear on the overpayment of
benefits:
- DUI didn’t use available quarterly wage information for existing and new employees for purposes of detecting unemployment claimants receiving payments that they were ineligible for.
- "DUI did not perform certain targeted automated matches to identify claimant payments with a higher likelihood of being improper, such as claimants who were paid benefits after their date of death, while incarcerated in a State correctional facility, or while employed by a State agency."
- DUI had no process in place to ensure current and accurate unemployment claimant address. In particular, DUI didn't have a process for making sure that changes processed by the bank's debit cardholder account records were communicated to DUI.
- A system programming error for online tax credit applications resulted in employers being improperly certified to receive tax credits.
Fortunately, as indicated in the Audit report's
appendix – and pointed out by MarylandReporter.com – the Department of Labor, Licensing and Regulation appears willing to
take these findings seriously. Hopefully, the acknowledged problems regarding
improper, erroneous payments will be remedied quickly. This is important for an
unemployment insurance program that has been growing rapidly in any event. Expenditures
increased from approximately $460 million in 2007 to "approximately $1.61 billion, of which approximately $768
million was funded by the federal government" – that is, $842 million – in
2011.