ESC’s IT Unit Was Flagged in Audit

Bob Styran, IT audit expert
October 05, 2010 /

A department of the Employment Security Commission fixed a glitch in their computer that overpaid funds to unemployed workers  in the amount of $28 million.

This is the same department at the ESC that recently fired an employee for burning bootleg DVDs and playing computer games while on the government’s computer.

An audit by the state released in August discovered an analyst employed to work in the systems and operations department of the ESC installed software into his company computer allowing him to subvert DVD copyright protections on computer games and movies. The analyst was capable of producing multiple copies of the movies and games while sitting at his desk all the while the department was paying him for employment.

The state auditor staff discovered the overpayment of the benefits by the ESC in April while completing the annual audit. The federal government was informed of the error by the state auditor’s office and it is reported were told the ESC was aware of the error since the federal government had conducted their own audit.

The audit by the state found a number of mistakes calculating the benefits of unemployed workers by the ESC and also when distributing funds for persons receiving stimulus money from the federal government.

The ESC in a statement to the auditors acknowledged the problem and was working towards a solution.

State auditors did not realize the extent of the over payments of funds until the ESC self disclosed the programming error of over $28 million dollars that was paid out to 38,000 persons.


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