Audit Reveals New System Helps Michigan Unemployment Agency Recover $90M and Combat Fraud
The Office of Auditor General (OAG) recently completed an audit of Michigan’s Unemployment Insurance Agency (UIA), addressing issues arisen from the COVID-19 pandemic. The audit has led to multiple changes and improvements within the UIA, with the primary goal of combating fraud and improving service for Michigan workers and businesses.
In response to the audit, the UIA will be replacing the outdated MiWAM computer system, installed in 2010, with a new, more sophisticated system designed to provide better anti-fraud measures. The system is expected to be fully functional by 2025.
Furthermore, after identifying how the agency fell prey to fraudulent activities in 2020, a Legal and Compliance Bureau has been created, tasked with leveraging anti-fraud strategies to pursue those intent on illegal activities. An additional 30 temporary employees have been hired for this purpose, funded by a $2.6M grant from the U.S. Department of Labor.
The UIA is also working on new resources to assist those filing for unemployment. Partnering with Detroit’s Civilla, a nonprofit, they’re launching ‘Claimant Roadmap’, a resource designed to guide applicants through the unemployment benefits application process. In addition, they will offer a series of First-time Filer Coaching Sessions where applicants can direct queries to a UIA employee.
Businesses in Michigan can also anticipate a new resource, the ‘Employer Help Center’, which UIA plans to launch in 2024. This center will serve as a go-to point for unemployment and tax-related inquiries.