CHARLOTTE, N.C. — Nearly half a billion dollars in unemployment payments were delivered late to North Carolinians around the start of the pandemic, a state audit revealed Monday.
The North Carolina State Auditor released the findings of an audit that covered January 2020 and March 2021. The results show the Division of Employment Security failed to issue $438 million in timely unemployment benefits and management failed to monitor the timeliness of those payments. The audit also found that DES wasn't prepared for an economic downturn.
Auditors tested 3.67 million of 3.69 million first payments from eight unemployment benefit programs DES administered and found the state only issued 2.2 million (about 60%) of these payments within the federal timeliness standard.
Gov. Roy Cooper's statewide stay-at-home order, which took effect March 30, 2020, caused a significant jump in unemployment from 3.6% to 13.5%.
"Despite knowing another economic downturn was inevitable, DES did not have a plan or risk assessment that identified, evaluated, and addressed the risk that a sudden economic downturn could occur and significantly increase unemployment claims," the report states.
The auditors found that DES should create policies and procedures to monitor the timeliness of unemployment benefit payments. DES management is recommended to complete the described process at least once per year to update for any new risks and update responses to these risks.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to the Defenders team by emailing money@wcnc.com.
Editor's note: The story has been updated to show the audit account for January 2020 through March 2021.
Wake Up Charlotte To Go is a daily news and weather podcast you can listen to so you can start your day with the team at Wake Up Charlotte.
SUBSCRIBE: Apple Podcasts || Spotify || Stitcher || TuneIn || Google Podcasts
All of WCNC Charlotte's podcasts are free and available for both streaming and download. You can listen now on Android, iPhone, Amazon, and other internet-connected devices. Join us from North Carolina, South Carolina, or on the go anywhere.