ISSUES - INSURANCE
There are numerous types of insurance programs that the State is responsible for. The one that will be on the forefront of the Lopez Administration is the Unemployment Insurance Fund. The Polis administration lost at least 1 billion dollars of Covid-relief funds and tax dollars from job providers for unemployment. The Office of the State Auditor in the Statewide Financial Audit Fiscal Year Ended June 30, 2020 outline the following finding.
DEPARTMENT OF LABOR AND EMPLOYMENT.
Unemployment Insurance (UI) Financial Reporting. The Department had not adjudicated all claims for UI benefits that were paid during Fiscal Year 2020, and therefore could not estimate the amount of payments that had been made due to error or fraud. In addition, the Department did not have an adequate methodology for calculating and recording the estimated amount of receivables and payables for UI payments, which resulted in unverifiable adjustments of $2.1 billion in the Unemployment Insurance Fund. Classification: MATERIAL WEAKNESS
A MATERIAL WEAKNESS is the most serious level of internal control weakness. A material weakness is a deficiency, or combination of deficiencies, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.