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Unemployment Compensation: Payments to Ineligible Former Employees

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Report Type Reports and Testimonies
Report Date Dec. 19, 1986
Report No. GGD-87-17
Subject
Summary:

In response to a congressional request, GAO reviewed six agencies' unemployment compensation procedures and payments to their former employees.

GAO found that: (1) the six agencies were incurring greater than necessary unemployment compensation costs because they did not have effective internal control systems to ensure that states were furnished timely, complete and accurate information; (2) former employees who separated under circumstances which made them ineligible for unemployment compensation received payments; (3) agencies missed opportunities to reduce their unemployment costs and prevent payments to ineligible former employees when they did not appeal inappropriate payments; (4) agencies did not report to Congress in compliance with the Federal Managers' Financial Integrity Act (FMFIA) on internal control weaknesses that allowed improper payments; and (5) several agencies employed contractors to manage their unemployment compensation programs.

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