An audit to address issues at the Michigan Unemployment Insurance Agency (UIA) found that shortcuts used to expedite payments left the agency vulnerable to fraud in hundreds of millions of dollars.
The audit done by Deloitte cited multiple actions taken that caused problems.
The UIA processed 2.8 million jobless claims since the beginning of the coronavirus pandemic — a volume that the audit stated the agency would usually handle over a six-year span.
Deloitte found that filters on a fraud screening software were turned off because of concern with the filters, kicking out too many legitimate filings. In addition, the 10-day claim verification for employers was suspended and multiple personnel changes meant new people and not enough oversight.
The agency has a new director and said it released the findings to show transparency. The agency said a representative would not be available to discuss the findings until next week.
