Audit: More than $400 million in NC unemployment funds not paid out in timely fashion
“(People) couldn’t pay their bills. They couldn’t buy food. They couldn’t pay their mortgages. So, it was critical that the reactionary time be very fast.”
RALEIGH, N.C. (WNCN) – North Carolina failed to pay more than $400 million in unemployment benefits to people in a timely fashion during the COVID-19 pandemic, according to a new report released Monday.
State Auditor Beth Wood (D) found the Division of Employment Security was not prepared for the massive increase in unemployment claims that began in March 2020 and was not adequately monitoring whether payments were being made as quickly as mandated.
“It was a pivot that everyone had to make quickly,” Wood said in an interview Monday. “(People) couldn’t pay their bills. They couldn’t buy food. They couldn’t pay their mortgages. So, it was critical that the reactionary time be very fast.”
She added that while the pandemic led to an unprecedented surge of applications for unemployment benefits, the agency had not adequately prepared for an increase in demand for services following the Great Recession just over a decade ago.
“Nobody could see the pandemic coming. Nobody. But, they had absolutely zero preparations for the next economic downturn,” Wood said. “There was no plan. So, it’s pretty chaotic upfront.”
“You should have been better prepared on the front end and not have to run a sweat shop during a crisis.”
