Audit: Michigan Unemployment Agency Paid $245 Million in Possibly Improper Payments

A fifth and final audit of the Michigan Unemployment Insurance Agency found the agency “undercounted fraud penalties by at least 49.4%” because it didn’t fix programming issues with the Michigan Integrated Data Automated System.

The audit from the Office of Auditor General Doug Ringler marked two “material conditions” – the most severe rating finding that the agency didn’t protect agency funds.

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Audit: Michigan Unemployment Insurance Agency Couldn’t Support $10.2 Billion of Payments

An audit released Friday from the Office of Auditor General Doug Ringler marked 11 “material conditions” – the most severe rating – for how the Michigan Unemployment Insurance Agency operated during the pandemic, which resulted in losing billions of taxpayer dollars.

The audit found the UIA couldn’t support the appropriateness of $10.2 billion in Pandemic Unemployment Assistance payments, mostly because it added invalid eligibility criteria in the PUA application and didn’t require some PUA claimants to certify they met federal eligibility criteria. 

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