McLean County Times

State Sen. Sally Turner (R-Beason) shared her shock and outrage regarding the mismanagement that plagued the Illinois Department of Employment Security during Covid which resulted in $5 billion in improper payments. 

After the release of an audit detailing the massive failure by the administration of Gov, J.B. Pritzker, Turner took to Facebook to express their disbelief and concern over the staggering figure of over $5 billion in improperly paid-out unemployment benefits in just two years, with a dismal recovery rate of a mere tenth of that amount.

“I am outraged by the complete mismanagement of our state’s unemployment insurance program that this audit shows. It is truly hard for me to wrap my head around the fact that more than $5 billion of unemployment benefits were improperly paid out in just two years and that only a tenth of that money has been recovered,” Turner said on Facebook. “The lack of planning and poor decision-making committed by IDES throughout this report are beyond concerning. The people and businesses of our state do not deserve to pay for the state’s mishandling of this program. What they do deserve is answers to how this was allowed to happen and what the Administration is doing to rectify the problems created by their own gross incompetence.” 

The damning report highlights a lack of planning and questionable decision-making by IDES, leaving citizens and businesses bearing the burden of the state's mishandling. Turner asserts that the people deserve to know how such a colossal failure was allowed to unfold and what measures the Administration is taking to address the repercussions of their gross incompetence.

Gov. J.B. Pritzker himself refused to discuss the report, instead pointing to IDES. In response, IDES spokeswoman Rebecca Cisco called out the administration of former president Donald Trump who she said required the state to use “a poorly designed and brand new unemployment insurance program on their own in record time with continuously changing federal guidance,” according to Chicago Tribune. However, the actual audit paints a different story, placing the responsibility directly on Pritzker and IDES. 

“IDES was not prepared to respond to the needs created by the pandemic,” the report from Auditor General Frank Mautino’s office stated. “IDES did not have a plan for responding to recessions and potential surges in claims.”

The performance audit conducted by the Office of the Auditor General highlights key findings related to the unemployment programs administered by the Illinois Department of Employment Security during the period of March 1, 2020, to September 6, 2021. The audit reveals significant issues with overpayments, including fraud and identity theft, totaling $5.24 billion in the Pandemic Unemployment Assistance (PUA) and regular Unemployment Insurance (UI) programs. The report also identifies challenges IDES faced during the pandemic, such as delays in processing claims and susceptibility to fraud due to suspended defenses. The audit report contains seven recommendations for IDES to improve its operations and prevent future issues with unemployment benefits distribution. The report’s key findings detail the fraud undertaken.

“Overpayments (which include fraud, non-fraud, and identity theft) were an issue in both the regular UI and PUA programs. IDES reported overpayments for FY20 to FY22 that totaled $5.24 billion; regular UI accounted for $2.04 billion and PUA accounted for $3.20 billion,” the performance audit reads. “Considering gross benefits associated with regular UI claims were 2.5 times higher than gross benefits associated with PUA claims, it shows the magnitude of fraud experienced in the PUA program. IDES noted stopped or recovered payments of $150.36 million and $361.34 million for the regular UI and PUA programs respectively.”

Mautino further found IDES failed to maintain appropriate records. The audit found IDES failed to maintain accurate and complete accounting records and supporting documents for the Trust Fund, raising concerns about the internal controls safeguarding Trust Fund assets. As a result, auditors were unable to determine the opening net position and activity for the year ended June 30, 2022, impacting the statements of revenues, expenses, and changes in net position and cash flows. The audit also highlighted the Department's mishandling of Pandemic Unemployment Assistance (PUA) claimant data, leading to challenges in assessing claimants' eligibility. Additionally, improper recording of receivables and mismanagement of overpayment receivables were noted, prompting the need for better financial reporting controls, according to the Office of the Auditor General's report. 

Read the Auditor General’s audit, report, and findings HERE.

The 44th district comprises either the entirety or portions of McLean County, Illinois, as well as Menard, Sangamon, and Tazewell counties.