State of Arizona Office of the Auditor General



Department of Economic Security—Division of Employment and Rehabilitation Services—Unemployment Insurance Program (January 2005, Report No. 05-01)


This audit found that the Department of Economic Security’s (DES) accuracy rate in determining benefits eligibility for unemployment insurance claimants is significantly below federal standards and national averages.  Additionally, due to longstanding errors in its unemployment tax certification computer program, DES has reported inaccurate employer tax information to the IRS. DES should also improve the timeliness and accuracy of its process for determining employers’ tax liability and its management of employer refunds.  Finally, DES should improve the quality of its employer audits by continuing its efforts to implement an automated audit system.

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