Dupage Policy Journal

State Rep. Amy Grant (R-Wheaton) is expressing criticism of Gov. J.B. Pritzker's management of state agencies, citing the results of an audit of the Illinois Department of Employment and Services.

Revelations from the audit laid bare more than $5 billion in fraudulent unemployment claims, spanning a duration of two years. Grant took to Facebook to voice her concerns, asserting that taxpayers will bear the consequences of Pritzker's alleged shortcomings in overseeing government institutions.

“The shocking results of this IDES audit are just one example of Pritzker’s failure to manage state agencies, something that taxpayers will repeatedly pay the price for,” Grant said on Facebook.

IDES spokeswoman Rebecca Cisco called out the administration of former president Donald Trump whom 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,” the Chicago Tribune reported. The audit places the responsibility on 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 Sept. 6, 2021. The audit reveals 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.

“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 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.

Grant represents the 47th District, located in DuPage County, which includes all or parts of Carol Stream, Lisle, Warrenville, Wheaton, Winfield, West Chicago, and Naperville.