Galloway finds $2 million in potential inaccuracies by the Department of Labor

Missouri State Auditor Nicole Galloway issued a report on Tuesday revealing millions in potential inaccuracies by the Department of Labor related to unemployment insurance program financial activities.

The report also found continued failure by the state to properly account for federal dollars.

Galloway said the report details issues resulting from changes to the Unemployment Insurance system at the Department of Labor, which is used to pay unemployment benefits. The auditor’s office saw $2 million in potential inaccuracies because of wrong calculations and inconsistencies.

“Businesses throughout Missouri pay millions into the unemployment system, which is why it is so disconcerting to find that there are funds being managed without proper oversight or accountability,” Galloway said. “Even simple checks and balances have not been implemented, leaving the Department of Labor unable to accurately provide basic financial information.”

The new system was not fully developed or tested before implementation. Galloway said as a result, the Department provided inaccurate information on required state and federal filings.

The review also identified a lack of accountability in the Department of Mental Health and the Department of Social Services.

“The state spends billions in federal dollars each year that must be managed properly and spent appropriately on programs and services Missourians depend on,” Galloway. “Failing to properly account for that money can put those dollars, and the programs they support, at risk. “