The Department of Commerce’s Division of Employment Security (DES) failed to deliver first-round unemployment payments on time. A 2023 audit revealed that DES did not fully implement corrective actions, leading to noncompliance with federal timeliness standards. Between January 1 and December 31, 2023, about $7.8 million in unemployment payments were delayed, according to the North Carolina Office of the State Auditor.
The audit identified three key issues with DES: failure to meet federal standards for timely unemployment claims, insufficient monitoring of payment timeliness, and no strategy for handling economic downturns. These gaps suggest DES may struggle to respond efficiently to a surge in unemployment claims caused by a disaster or economic crisis.
State Auditor Jessica N. Holmes praised DES for their cooperation during the audit but urged lawmakers and DES staff to reconsider their approach. She stated, "Unemployment benefits provide critical support to our most vulnerable citizens and it is my hope that the findings of this report are taken into consideration by lawmakers and DES staff moving forward," in a North Carolina Office of the State Auditor.
