Whitmer's Michigan paid $3.9B in pandemic unemployment relief to ineligible claimants: audit

The Michigan UIA paid out billions in improper payments through three federal pandemic relief programs: Pandemic Unemployment Assistance, Pandemic Unemployment Compensation, and Lost Wages Assistance.

"Ultimately, UIA's application and weekly certification processes allowed individuals without any prior attachment to the workforce and who may have been unemployed for reasons unrelated to COVID-19 to be paid PUA and associated PUC and LWA program benefits improperly," Michigan Auditor General Doug Ringler reported in the audit.

The audit found that UIA's senior leadership, through both actions and inaction, "Directly contributed to the creation of invalid PUA application and certification processes and UIA's failure to timely and appropriately address issues pointed out by the U.S. Department of Labor and UIA staff." Two months after the CARES Act was signed into law by then-President Donald Trump, the U.S. Department of Labor "Communicated at least a few states had 'seriously cut corners' in their implementation of PUA eligibility and noted significant issues with Michigan's eligibility documentation," the audit found.

Michigan's UIA continued to follow its improper payment criteria even after that first alert in May 2020 and after the U.S. DOL directly contacted the agency in June 2020 about its issues.

"UIA did not correct its improper eligibility criteria when the USDOL first communicated issues directly to UIA in June 2020," the audit found.

The audit revealed that a review of internal emails showed the UIA director discussed the criteria with the Executive Office of the Governor, the state Department of Labor and Economic Opportunity, and other senior staff at UIA. In addition, a PowerPoint slide presentation prepared by executives at the UIA and state labor department in April 2020 was shared with the governor's office.

The audit also indicated UIA "Will likely not recoup most of the overpayments because the improper payments were UIA's fault and not that of the claimants." "Prior to any independent audit findings, UIA initiated and implemented changes and the agency will continue to identify ways it can meet the OAG's recommendations," said Dale.
 

https://justthenews.com/accountability/watchdogs/sunwhitmers-michigan-paid-39b-pandemic-unemployment-relief-ineligible