Untimely First Unemployment Benefit Payments Report Released

The North Carolina Office of the State Auditor (OSA) released a performance audit on the Department of Commerce, Division of Employment Security (DES) to determine whether DES implemented corrective actions in response to OSA's 2022 audit concerning the timeliness of first unemployment benefit payments. This audit found that DES did not fully implement corrective actions.

Raleigh, N.C.

Nov 21, 2024

The North Carolina Office of the State Auditor (OSA) released a performance audit on the Department of Commerce, Division of Employment Security (DES) to determine whether DES implemented corrective actions in response to OSA's 2022 audit concerning the timeliness of first unemployment benefit payments. This audit found that DES did not fully implement corrective actions.

Specifically, the audit has three major findings.

• DES did not ensure its unemployment benefits claims process is designed to meet the federal timeliness standard.
• DES did not monitor the timeliness of first unemployment payments.
• DES did not 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.

"I want to thank the leadership and staff at DES for their cooperation during the course of this audit" stated Jessica N. Holmes, J.D. "Unemployment benefits provide critical support to our most vulnerable citizens and it is my hope that the findings of this report are taken into consideration by lawmakers and DES staff moving forward."

Click here to view the full audit report.

OSA Communications

[email protected]

(919) 807-7666