As state officials frantically work to review hundreds of thousands of frozen unemployment accounts for fraud, a new report from the California state auditor found that the unemployment department’s inefficiency and lack of advanced planning continue to create delays — and that the department is still not doing all it needs to in order to correct the issue.
The report is a response to a request for an emergency audit from the state’s Joint Legislative Audit Committee. State legislators responded Tuesday by asking for an oversight hearing focused on ensuring the Employment Development Department implements the auditor’s recommendations.
The audit comes one day after EDD confirmed it has paid out at least $11 billion worth of fraudulent unemployment benefits since the beginning of the pandemic. A good chunk of the claims are still being reviewed, and Labor Secretary Julie Su says the agency expects the number of fraudulent claims will continue to increase.
"There is no sugarcoating the reality," Su said at a press event Monday. "California did not have sufficient security measures in place to prevent this level of fraud, and criminals took advantage of the situation."