Audit: Oregon unemployment systems showing age
While computer programs that process Oregon unemployment benefits and taxes handle most transactions accurately, the systems are inflexible, difficult to maintain, and should ultimately be replaced, according to a Secretary of State audit released Tuesday.
The audit reviewed the Oregon Benefits Information System (OBIS) and the Oregon Automated Tax System (OATS) operated by the Oregon Employment Department. Both systems have been in use since the early 1990s.
The report concludes that both systems correctly handle almost all transactions, but identifying and correcting some errors relies on time-consuming manual activities due to system inflexibility.
“As our economy recovers, businesses are growing and more Oregonians are entering the workforce. This is great news,” said Secretary of State Jeanne Atkins, who oversees the State Audits Division. “I encourage the Employment Department to implement these audit recommendations in their work to serve business owners and workers across the state.”
The report recommends improving documentation and restricting access, but also recommends preparing to replace the systems with more flexible solutions. Auditors also noted improvements the department could make to better manage changes to computer code and to ensure the systems could be quickly recovered in the event of a disaster.
In their investigation, auditors found that the Employment Department skips some steps that could help identify errors in tax returns.
For example, an OATS report that identifies potential instances when employers have over-reported or under-reported taxable wages for their employees is not being reviewed.
By not using the report, staff did not detect that nearly 2,000 employers collectively overpaid their taxes by approximately $850,000 in 2014.
Systems used by the department are also poorly documented and difficult to update when rules change, the auditors found. This has contributed to problems associated with security of system data.
Read an executive summary on the Audits Division Blog.
