RALEIGH, N.C. (QUEEN CITY NEWS) - The North Carolina Division of Employment Security failed to issue “$438 million of first unemployment benefit payments" in a timely manner during the height of the COVID-19 pandemic, according to a report from the State Auditor.
A performance audit found that DES did not issue first unemployment benefit payments in a timely manner during the period of January 1, 2020, through March 31, 2021, causing North Carolinians to “wait weeks to months” to receive their benefits.
“As a result,” the report found, “$438 million of financial assistance was not received by North Carolinians during a time of tremendous need.”
According to the Auditor’s Office, DES’ unemployment claim process is not designed to make payments in a timely manner. The report said the division’s management did not monitor payment timeliness and that DES was not prepared for economic downturns that inevitably occurred.
Officials said DES is required to make 87% of first payments within the “federal timeliness standard” for the state unemployment insurance program.
Queen City News spoke to several people struggling to receive their unemployment benefits during the pandemic.
“I’ve cried a lot. I’ve gone through my savings to be able to pay the rent here, and car insurance and Duke Power and my phone bill,” said Mary Ellen Krause who had fought for months to get unemployment compensation after she was furloughed.
“They said something about I didn’t make enough wages where I was working so I was going to be denied unemployment. Then they told me I was approved for the PUA and that I should’ve been getting the PUA from the very beginning,” Krause said.
In September 2020, Queen City News sent an email to DES asking for an expedited review of Krause’s case. DES deposited $4,100 in unemployment back pay into her account just 24 hours later.
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