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State Audit Finds EDD Paid $4.6 Million for Unused Cellphones and Hotspots

Auditors relied on carrier invoices to verify years of nonuse prompting a new 90‑day rule to cut off inactive lines.

Overview

  • The annual report on improper activities documents $4.6 million in monthly service fees for mobile devices that showed no activity.
  • EDD procured 7,224 cellphones and wireless hotspots by December 2020 to support remote Unemployment Insurance work during COVID‑19.
  • Auditors identified 6,285 devices unused for at least four consecutive months, with roughly half idle for two years or more and 99 never used.
  • As of April 2025 the department employed 1,787 call‑center workers yet paid for 5,097 mobile lines, highlighting persistent overbilling.
  • EDD canceled 2,825 lines in April and now terminates service after about 90 days of inactivity, while the audit also cites other agencies’ lapses, including a $171,446 overpayment at CARB.