Overview
- The North Carolina Office of the State Auditor released two follow-up audits Wednesday that found $47.2 million in fraudulent unemployment overpayments tied to claims from April 2021 through March 2025.
- The auditor estimated an overall improper payment rate of 22% for 2021–2025, more than double the 10% federal threshold and costing taxpayers roughly $90 million above that standard.
- The Division of Employment Security recovered only about $12.1–$12.2 million of the identified fraud, and the audits flagged limited recovery efforts during the reviewed period.
- Auditors attributed most overpayments to work-search reporting errors, mistakes in benefit-year earnings calculations, and flawed separation determinations, and they noted delayed fixes such as an online work-search tool that was not implemented until December 2025.
- State Auditor Dave Boliek criticized the Department of Commerce and the governor’s office for a lack of urgency, the Division of Employment Security agreed with the findings, and the reports add to a two-decade pattern of late and improper payments that has drawn federal scrutiny and potential enforcement.