Auditor McCarthy releases first audit on unemployment fraud
OLYMPIA – An audit released today provides the first, high-level accounting of some of the circumstances surrounding the major fraud scheme that targeted Washington state's unemployment benefits in the spring.
As part of its annual audit of the state's financial statements, the Office of the Washington State Auditor found that the Employment Security Department (ESD) did not have adequate internal controls to prevent the fraud. The Department also reported inaccurate fraud and recovery numbers for the state's financial statements.