The Unemployment Insurance Agency (UIA) in Michigan reportedly made over $245 million in payments to ineligible claims between January 2020 and October 2022, according to a recent audit by the state Office of the Auditor General. This audit highlighted issues such as payments made to incarcerated individuals, deceased individuals, and those not within the working age bracket. While the UIA acknowledged the issues mentioned in the OAG’s report and attributed most of them to the early stages of the Covid-19 pandemic, the OAG disputed this.

According to UIA Director Julia Dale, the agency has taken proactive steps to correct these mistakes. Under Ms. Dale’s leadership since October 2021, the UIA has been implementing changes including personnel hires, a new computer system, and the establishment of a bureau for fighting fraud. The efforts from UIA have led to 90 convictions and the recovery of about $90 million.

Nevertheless, the audit reported that an additional $840 million could still be collected from identified frauds. A key finding of the audit was that underestimation of fraud penalties was due to some issues with the agency’s data management system. Dale noted the challenges the agency has faced, including limited resources and the high volume of fraud at both federal and state levels.

The audit is the fifth in a series requested by lawmakers. State Representative Tom Kunse has called for more agility, transparency, and accountability from the agency. He also voiced his desire for the pace of changes to be accelerated. In response to the audit, the committee chair, Rep. Erin Byrnes, announced plans to follow up on the report in the coming year.