Unemployment Compensation

Payments to Ineligible Former Employees Gao ID: GGD-87-17 December 19, 1986

In response to a congressional request, GAO reviewed six agencies' unemployment compensation procedures and payments to their former employees.

GAO found that: (1) the six agencies were incurring greater than necessary unemployment compensation costs because they did not have effective internal control systems to ensure that states were furnished timely, complete and accurate information; (2) former employees who separated under circumstances which made them ineligible for unemployment compensation received payments; (3) agencies missed opportunities to reduce their unemployment costs and prevent payments to ineligible former employees when they did not appeal inappropriate payments; (4) agencies did not report to Congress in compliance with the Federal Managers' Financial Integrity Act (FMFIA) on internal control weaknesses that allowed improper payments; and (5) several agencies employed contractors to manage their unemployment compensation programs.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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