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Audit: State agency paid $97,000 to fictitious companies

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February 3rd, 2016 by Ric Hanson

DES MOINES, Iowa (AP) ā€” A state audit has revealed that Iowa Workforce Development paid more than $97,000 in unemployment benefits to people claiming to work for companies that didn’t exist in 2013 and 2014s and paid more than $66,000 to people not eligible for unemployment payments in other states. Those improper payments are part of more than $909,000 the state lost over a three-year period for which the state auditor reviewed records.

Iowa Auditor Mary Mosiman says her office was notified in May 2013 that irregularities in unemployment payments were discovered. She was asked by the U.S. Department of Labor to audit workforce development’s books to determine the extent of lost funds. Mosiman says the audit found 20 fictitious company accounts. It’s unclear who set them up and no one has been charged.