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CA fails audit of federal programs, 66% of COVID unemployment benefits in question

  • California's 2023 audit revealed the state did not fully comply with requirements for seven of 22 federal programs.
  • Deficiencies in accounting and administration affected internal controls and led to noncompliance.
  • The audit cited pervasive issues within the state's unemployment benefits program.
  • Linus Li's report noted $55 billion in fraudulent payments and nearly $200 million in potentially ineligible payments.
  • Noncompliance and deficits in the unemployment fund may trigger increases to payroll taxes for employers.
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The Daily GazetteThe Daily Gazette
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CA fails audit of federal programs, 66% of COVID unemployment benefits in question

(The Center Square) - California did not materially comply with the requirements for seven of the 22 federal programs the state auditor examined, including “pervasive” noncompliance in its unemployment benefits program, which could put essential federal funding at risk.

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The Center Square broke the news in United States on Saturday, April 5, 2025.
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