On July 26, the Illinois Auditor General released a 156-page-report on the Illinois Department of Employment Security (IDES) in response to a resolution filed by State Senator Chapin Rose (R-Mahomet) calling for a full performance audit of the state’s handling of the unemployment system during the COVID-19 pandemic.
The scathing report shows overpayments to the tune of $5.24 billion from fiscal years 2020 to 2022. Approximately $2.04 billion was paid in unemployment insurance, with the remaining $3.2 billion coming from Pandemic Unemployment Assistance (PUA). From those overpayments, only $551.7 million has been recovered, approximately 10%. Unfortunately, those numbers cannot be entirely confirmed by the IDES, which means that these numbers could be understated.
The report also found that beginning in March 2020, IDES suspended some routine identity cross-matches, performed on all regular UI claims filed, to prevent fraud in order to handle the increase in claims processing traffic. Unfortunately, the side effect of rushing the approval process seems to have left the unemployment programs more susceptible to fraud.
Furthermore, IDES did not implement one of the tools strongly recommended in May 2020 by the US Department of Labor until September 2021, alongside the suspension of other required and recommended cross-matches early in the pandemic. Even worse, IDES is continuing to still ignore select Department of Labor recommendations made in October 2021 and February 2022, including additional cross-matches that could be used to combat fraud.
Overall, the report shows that the IDES prioritized decreasing unemployment claim response times over ensuring accuracy in their payments. Despite their focus on responding quickly, however, the IDES still failed to meet federal timeliness standards in 2021 and 2022.