Audit finds state overpaid jobless by $41 million

An audit released by the state of Oregon shows in 2011 the state overpaid $41 millions in jobless benefits.

The audit released this week found that a glitch in the system used to process claims is responsible for the error.

“The system was allowing for example double payments,” said Dee Anna Hassanpour the deputy administrator of unemployment benefits. “So people would receive two payments in one week on two different claims.”

Hassanpour says her office was swamped when the recession hit the state.

“What happened was when the extensions came into place, we just didn’t have the programming in the existing system ready for that,” said Hassanpour.

Hassanpour told NewsChannel 21 by phone Thursday that during the height of the recession, the federal government offered two different extensions.

Filers could as for benefits for as many as 99 weeks. Hassanpour added, switching from between programs would sometimes allow for the applicant to be paid out of both.

To correct the problem, the state has sent out letters to those who have been overpaid, asking for the money back. The state says you can request a waiver of what you owe.

“The waiver goes out with the notice of over payment,” said Hassanpour. “We’ve received a large number of those requests back, and we have three full-time staff working on those waivers — and most of them are approved.”

The Employment Department says during the audit, when the problem was first found, they immediately began working to fix the glitch.

For now, the system is repaired, and those in charge say they’re confident this won’t happen again.

“I do not anticipate that we will face the same issues that we did in the past,” said Hassanpour. “We have set the system, for example, (so that) no one will get paid twice in one week, and no one will receive more than their weekly benefit amount that is programmed into the system.”