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State auditor finds inaccuracies within Department of Labor unemployment program

State auditor finds inaccuracies within Department of Labor unemployment program. (FILE)

Missouri State Auditor Nicole Galloway issued a report revealing potential inaccuracies by the Department of Labor related to unemployment insurance program financial activities.

The report outlined incorrect calculations and inconsistencies resulted in $2 million in potential inaccuracies. The Unemployment Insurance system was found to have paid at least $134,000 in overpayments to claimants who had exceeded their maximum unemployment benefit. The practice went undetected for approximately a year, according to a release from the State Auditor's Office.

"Businesses throughout Missouri pay millions into the unemployment system, which is why it is so disconcerting to find that there are funds being managed without proper oversight or accountability," Galloway said. "Even simple checks and balances have not been implemented, leaving the Department of Labor unable to accurately provide basic financial information."

Galloway found the Department provided inaccurate information on required state and federal filings because the new system, costing more than $40 million, was not fully developed or tested before implementation.

The 2016 audit report had six findings, while this year's report found 17 areas of concern. One of the concerns include hundreds of millions of dollars in what the auditor identified as questionable costs in social safety net programs, like Medicaid.

Additional agencies including The Department of Mental Health and the Department of Social Services were found to have repeat issues identified in audits from previous years.

The Statewide Single Audit annually identifies weaknesses in the state's financial reporting and reviews the management and spending of $12 billion in federal funds.

You can view the complete issued report here.


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