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Audit Report — ETA Needs a Plan to Reconcile and Return Nearly $5 Billion in Unused TFFF Funds to U.S. Treasury

Filed September 28, 2023 in DOL OIG Unemployment Insurance; one of 15 filings from this case.

Record facts

CourtU.S. Department of Labor, Office of Inspector General (contracted to Rocha and Company, PC)
Filed2023-09-28

Full text

REPORT TO THE EMPLOYMENT 
AND TRAINING ADMINISTRATION 
COVID-19: ETA NEEDS A PLAN TO 
RECONCILE AND RETURN TO THE U.S. 
TREASURY NEARLY $5 BILLION 
UNUSED BY STATES FOR A 
TEMPORARY UNEMPLOYMENT 
INSURANCE PROGRAM 
This report was prepared by Rocha & Company, PC under contract to 
the U.S. Department of Labor, Office of Inspector General, and, by 
acceptance, it becomes a report of the Office of Inspector General.              
                                                                                                                      
                                                            
            
                                                                ____________________ 
                                                         U.S Department of Labor  
Assistant Inspector General for Audit 
 
DATE ISSUED: SEPTEMBER 28, 2023
REPORT NUMBER: 19-23-015-03-315

U.S. Department of Labor 
Office of Inspector General 
Audit 
BRIEFLY… 
COVID-19: ETA NEEDS A PLAN TO 
RECONCILE AND RETURN TO THE U.S. 
TREASURY NEARLY $5 BILLION UNUSED 
BY STATES FOR A TEMPORARY 
UNEMPLOYMENT INSURANCE PROGRAM 
September 28, 2023 
WHY OIG CONDUCTED THE AUDIT 
On March 27, 2020, Congress passed the 
Coronavirus Aid, Relief, and Economic Security 
(CARES) Act to provide expanded 
Unemployment Insurance (UI) benefits to 
workers unable to work due to the COVID-19 
pandemic. The Temporary Full Federal Funding 
of the First Week of Compensable Regular 
Unemployment for States with No Waiting 
Week (TFFF) program reimbursed states for UI 
benefits paid to eligible claimants who did not 
wait a week to receive regular UI benefits. The 
Employment and Training Administration (ETA) 
was responsible for program oversight. We 
contracted this audit to address concerns about 
risks associated with the expansion of UI 
benefits and the disbursement of federal funds 
to claimants in need during the pandemic. 
WHAT OIG DID 
We contracted with the independent certified 
public accounting firm of Rocha & Company, 
PC (Rocha) to answer the question: 
Did ETA ensure states met TFFF program 
requirements and used funding according to 
the statutory intent of the CARES Act and 
related subsequent legislation? 
To answer this question, Rocha assessed 
ETA’s oversight, performed in-depth testing of 
6 states, and surveyed an additional 47 state 
workforce agencies (SWAs or states).  
WHAT OIG FOUND 
ETA and states did not always meet the 
requirements or statutory intent of the TFFF 
program. Specifically, individual claimants 
waited to receive urgently needed UI benefits, 
states received TFFF funding when they were 
not eligible, and states’ TFFF accounts have 
unused fund balances that have not been 
reconciled, closed out for deobligation, and 
returned to the U.S. Department of Treasury.   
Four states were allowed to access TFFF 
funding as reimbursements despite not meeting 
program requirements. For example, 2 states 
with waiting weeks required by their existing 
laws did not waive those weeks but were 
reimbursed for UI benefits paid after making 
claimants wait for their first week of UI 
compensation—contrary to the intent of the 
program. In addition, another 2 states used 
first-week UI compensation amounts paid 
outside the scope of the program period as the 
basis to be reimbursed. As a result, these 
states were reimbursed $105.1 million of 
federal funding they were not eligible to receive. 
Further, of the $12.5 billion in funding made 
available to the 53 SWAs through the TFFF 
program, nearly $5 billion remained unused as of 
July 31, 2023—more than 22 months after the 
TFFF benefit eligibility period expired—with no 
formal plan to reconcile states’ accounts and 
deobligate remaining funds for return to the U.S. 
Department of Treasury.  
These issues occurred because ETA did not 
have sufficient controls in place to ensure 
states accessing funds were in fact eligible for 
reimbursements or that unused TFFF funds 
were returned to the federal government.   
WHAT OIG RECOMMENDED 
Rocha made 8 recommendations to improve 
oversight of TFFF and similar programs. ETA 
agreed or partially agreed with 5 and disagreed 
with the remaining 3 recommendations. 
READ THE FULL REPORT 
https://www.oig.dol.gov/public/reports/oa/2023/1
9-23-015-03-315.pdf

U.S. Department of Labor – Office of Inspector General 
-i-
TABLE OF CONTENTS 
INSPECTOR GENERAL’S REPORT .................................................................... 1 
CONTRACTOR PERFORMANCE AUDIT REPORT ............................................ 1 
RESULTS ............................................................................................................. 5 
FOUR STATES WERE REIMBURSED $105.1 MILLION IN TFFF 
FUNDING DESPITE NOT MEETING CARES ACT 
REQUIREMENTS ...................................................................................... 6 
22 MONTHS AFTER THE TFFF BENEFIT ELIGIBILITY PERIOD 
EXPIRED, NEARLY $5 BILLION REMAINED IN FUA ............................. 14 
RECOMMENDATIONS ....................................................................................... 20 
ANALYSIS OF MANAGEMENT’S COMMENTS ...................................... 22 
EXHIBIT 1: FUNDS PUT TO BETTER USE AND QUESTIONED COSTS ......... 25 
EXHIBIT 2: DELAWARE DRAWDOWN OF INELIGIBLE WEEKS AFTER 
SEPTEMBER 6, 2021 ......................................................................................... 26 
EXHIBIT 3: SUMMARY OF TFFF TRANSACTIONS AND ENDING BALANCES 
THROUGH JULY 31, 2023 ................................................................................. 27 
APPENDIX A: SCOPE AND METHODOLOGY .................................................. 29 
APPENDIX B: AGENCY’S RESPONSE TO THE REPORT ............................... 33 

 
U.S. Department of Labor 
Office of Inspector General 
 
 
Washington, DC 20210 
TFFF EFFECTIVENESS 
 
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NO. 19-23-015-03-315 
INSPECTOR GENERAL’S REPORT 
Brent Parton 
Principal Deputy Assistant Secretary  
  for Employment and Training 
U.S. Department of Labor 
200 Constitution Ave. NW 
Washington, DC 20210 
 
 
The U.S. Department of Labor (DOL) Office of Inspector General (OIG) 
contracted with the independent certified public accounting firm of Rocha 
& Company, PC (Rocha) to conduct a performance audit of the Employment and 
Training Administration’s (ETA) oversight of Temporary Full Federal Funding of 
the First Week of Compensable Regular Unemployment for States with No 
Waiting Week (TFFF) program, a provision of the Coronavirus Aid, Relief, and 
Economic Security (CARES) Act.  
 
The OIG monitored Rocha’s work to ensure it met professional standards and 
contractual requirements. Rocha’s independent audit was conducted in 
accordance with generally accepted government auditing standards.  
 
Rocha was responsible for the auditors’ evaluations and the conclusions 
expressed in the report while the OIG reviewed Rocha’s report and supporting 
documentation. 
 
PURPOSE 
 
 
The COVID-19 pandemic was historic in its impact on the UI system. Following 
the start of the pandemic in the United States in early 2020, unemployment 
compensation claims rose exponentially to historically unprecedented levels. 
Prior to the pandemic, the numbers of UI claims were low.  
 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
On March 27, 2020, the CARES Act1 was signed into law with the goal of 
providing expanded UI benefits to workers who were unable to work due to the 
COVID-19 pandemic. According to ETA, the CARES Act did not include a 
program development period prior to implementation that would have provided 
the Department and states an opportunity to properly sequence guidance and 
operations of the key program requirements. ETA officials reported that states 
faced the combined challenges of (1) managing and processing an 
unprecedented increase in claims volume at an unprecedented pace, (2) making 
the statutory changes to existing UI programs, and (3) implementing the CARES 
Act UI programs. In addition, states had to develop new systems in order to 
implement the new programs. 
 
Section 2105 of the CARES Act authorized the TFFF program, whereby the 
federal government paid the cost of the first week of an eligible claimant’s regular 
UI compensation for states with no waiting week and for states choosing to waive 
their waiting week requirements. ETA made approximately $12.5 billion of TFFF 
funding available in Federal Unemployment Accounts2 (FUA) for 53 participating 
state workforce agencies (SWAs or states)3 to access as reimbursement for 
first-week regular UI compensation already paid to eligible individuals by the 
state.  
 
The CARES Act created the TFFF program to arrange for emergency relief, 
specifying that the FUA would provide to each state that entered into an 
agreement an amount equal to 100 percent of the total amount of regular 
compensation paid to eligible individuals by the state for their first week of regular 
UI benefits. Under the CARES Act, weeks between March 29, 2020, and 
December 31, 2020, were eligible for reimbursement. On December 27, 2020, 
the Continued Assistance Act (CAA)4 extended the TFFF program through 
March 14, 2021. On March 11, 2021, the American Rescue Plan Act (ARPA) 
of 20215 further extended the TFFF program through September 6, 2021. 
   
Based on the risks associated with expansions of the UI program, we contracted 
with Rocha to conduct a performance audit to answer the question:  
 
                                            
1 Pub. L. 116–136 (Mar. 27, 2020). 
2 The U.S. Department of Treasury transfers funds from the general fund to the Federal 
Unemployment Account (FUA) in amounts estimated by ETA to be necessary to reimburse the 
states for first week regular UI compensation paid. FUA is an account within the federal 
Unemployment Trust Fund that pays for the costs to administer the UI program, emergency 
benefits, loans to state trust funds, and program expansions like the CARES Act. 
3 When referring to UI, this report uses “state” or “SWA” to refer to the administrative body that 
administers the UI program within the state, district, or territory. For the 50 states, as well as the 
U.S. Virgin Islands, Puerto Rico, and the District of Columbia, that administrative body is a SWA.  
4 Division N, Title II, Subtitle A, Chapter 1, Pub. L. 116–260 (Dec. 27, 2020). 
5 Pub. L. 117–2 (Mar. 11, 2021). 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
Did ETA ensure states met TFFF program requirements and used 
the funding according to the statutory intent of the CARES Act and 
related subsequent legislation? 
 
To answer this question, Rocha conducted a performance audit that covered the 
period March 27, 2020, through September 6, 2021. To determine the amount of 
TFFF funding that remained in the FUA after September 6, 2021, Rocha 
obtained TFFF account balances from ETA’s summary of the U.S. Department of 
Treasury’s FUA transaction statements as of July 31, 2023. The audit included 
procedures at both the ETA and the state level to determine compliance with 
program requirements. Rocha performed in-depth testing and analysis for 
6 states—Delaware, Iowa, Louisiana, Minnesota, Nevada, and Oregon—selected 
by the OIG. The OIG selected these 6 states based on the amount of TFFF 
funding that states received, stratified into the highest, middle, and lowest range 
and the extent to which states had not been selected for review in previous OIG 
audits. Rocha also sent surveys to the remaining 47 SWAs to obtain key 
information and examine documentation. 
 
RESULTS 
 
Rocha found that ETA and states did not always meet the requirements or 
statutory intent of the TFFF program. Specifically, individual claimants waited to 
receive urgently needed UI benefits during the pandemic, states received TFFF 
funding when they were not eligible, and states’ TFFF accounts have unused 
fund balances that have not been reconciled and closed out for deobligation. As 
a result, Rocha identified $105.1 million in questioned costs.6 Rocha also 
identified nearly $5 billion in funds put to better use.7 These funds remained in 
states’ TFFF accounts after the benefit eligibility period expired8 and should be 
returned to the U.S. Department of Treasury.   
  
 
 
                                            
6 Questioned costs are costs: (A) resulting from an alleged violation of a law, regulation, 
contract, grant, or other document or agreement governing the use of Federal funds; (B) that are 
not supported by adequate documentation (also known as an unsupported cost); or (C) that 
appear unnecessary or unreasonable. 
7 Funds put to better use estimate funds that could be used more efficiently. Some examples 
would be reducing spending, deobligating funds, or avoiding unnecessary spending. 
8 TFFF benefit eligibility period, for states without a waiting week provision in their state law, was 
the week ending April 4, 2020, through the week ending September 6, 2021. 
 

U.S. Department of Labor – Office of Inspector General  
TFFF EFFECTIVENESS 
 
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NO. 19-23-015-03-315 
We appreciate the cooperation and courtesies ETA extended to Rocha and the 
OIG during this audit. 
 
 
Carolyn R. Hantz 
Assistant Inspector General for Audit 

U.S. Department of Labor – Office of Inspector General  
TFFF EFFECTIVENESS 
 
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NO. 19-23-015-03-315 
CONTRACTOR PERFORMANCE AUDIT REPORT 
 
 
Independent Auditors’ Performance Audit Report on the Effectiveness of the 
Execution of the Temporary Full Federal Funding of the First Week of 
Compensable Regular Unemployment for States with No Waiting Week Program 
and Compliance with the Coronavirus Aid, Relief, and Economic Security Act and 
Related Subsequent Legislation 
 
 
Brent Parton  
Principal Deputy Assistant Secretary  
  for Employment and Training  
U.S. Department of Labor 
200 Constitution Ave. NW 
Washington, DC 20210 
 
We were engaged by the Office of Inspector General (OIG), U.S. Department of 
Labor (DOL) to conduct a performance audit of the Department of Labor 
Employment and Training Administration’s (ETA) and states’ execution of the 
Temporary Full Federal Funding of the First Week of Compensable Regular 
Unemployment for States with No Waiting Week (TFFF) program under the 
Coronavirus Aid, Relief, and Economic Security (CARES) Act. We conducted the 
audit to answer the question:  
 
Did ETA ensure states met TFFF program requirements and used 
the funding according to the statutory intent of the CARES Act and 
related subsequent legislation? 
 
To answer this question, we conducted procedures at the ETA and state level to 
determine compliance with program requirements. For ETA, we submitted 
questions to UI officials and reviewed their responses and underlying support. 
For 6 states—Delaware, Iowa, Louisiana, Minnesota, Nevada, and Oregon—we 
performed in-depth analysis and testing. Five of the 6 states—Delaware, 
Louisiana, Minnesota, Nevada, and Oregon— had laws that required UI 
claimants to wait one week before receiving their first benefit payment.9 The OIG 
                                            
9 The state of Iowa did not have a waiting week provision in its state law. 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
selected these 6 states based on state funding percentages and their selection 
for analysis in other OIG audits of CARES Act programs. We also sent surveys to 
the remaining 47 state workforce agencies (SWAs or states) to obtain related 
information about the program. In addition, we examined state-level executive 
orders, agreements between ETA and states, correspondence between ETA and 
the states, individual first-week claims paid by the states, as well as TFFF 
funding activity between the Federal Unemployment Account (FUA) and the 
states. Our audit covered the period March 27, 2020, through 
September 6, 2021, and we obtained information subsequent to that period as 
needed. 
 
We conducted this performance audit in accordance with generally accepted 
government auditing standards. Those standards require that we plan and 
perform the audit to obtain sufficient, appropriate evidence to provide a 
reasonable basis for our findings and conclusions based on our audit objective. 
We believe the evidence obtained provides a reasonable basis for our findings 
and conclusions based on our audit objective. Our scope, methodology, and 
criteria are detailed in Appendix A. 
 
BACKGROUND 
On March 27, 2020, Congress passed the CARES Act to provide expanded 
Unemployment Insurance (UI) benefits to workers unable to work due to the 
COVID-19 pandemic. ETA was required to oversee one such provision—TFFF. 
The TFFF program reimbursed states 100 percent for first-week UI benefits paid 
to eligible claimants who did not have to wait a week, provided there was an 
agreement in place and no waiting week was required (or it was waived) under 
state law. States with a mandatory waiting week provision in their state law could 
waive the provision to be eligible. Eligible claimants benefited from the TFFF 
program because states expedited the delivery of UI benefits to claimants. 
On December 27, 2020—in addition to extending the TFFF program through 
March 14, 2021—the CAA decreased federal funding for TFFF program 
reimbursements from 100 percent to 50 percent. On March 11, 2021—in addition 
to extending the TFFF program through September 6, 2021— the ARPA restored 
federal funding for TFFF program reimbursements to 100 percent and allowed for 
retroactive application for weeks ending after December 31, 2020. See Figure 1 
for a legislative timeline of the TFFF program.  
 
 
 
 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
 
Figure 1. Legislative Timeline for TFFF Program 
 
 
Source: UIPL 20-20, UIPL 9-21, UIPL 14-21 
a Under ARPA, the amount of federal funding for reimbursement was retroactively established at 
100 percent for weeks of unemployment ending after December 31, 2020. 
To fund the program, ETA estimated how much money participating states 
needed and requested the funding from the Office of Management and Budget 
(OMB). Once OMB approved the requests, the funds were disbursed to 
uninvested FUA until ETA allotted10 the money to Invested FUA, which states 
accessed for reimbursement of first-week UI benefits already paid (see Figure 2). 
ETA is responsible for decreasing or increasing estimated allotments provided to 
the states based upon actual monthly amounts that should have been paid to the 
states. 
 
 
 
 
 
 
                                            
10 The term “allotted” refers to the act of ETA making the funds available to the states.  

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
Figure 2. TFFF Funding and Reimbursement Process 
 
Source: Rocha graphical representation of TFFF funding process. 
*Apportionment is defined as distribution of funds available for obligation. 
 
This report focuses on the performance of ETA and states’ TFFF operations 
during the audit period—March 27, 2020, through September 6, 2021—which 
coincided with the COVID-19 pandemic. The pandemic had a profound impact on 
the UI program, presenting states with unprecedented challenges. According to 
ETA officials, these challenges included managing an unprecedented surge in 
claim volume, adapting to remote work environments, and implementing three 
new significant temporary UI programs (Federal Pandemic Unemployment 
Compensation, Pandemic Unemployment Assistance and Pandemic Emergency 
Unemployment Compensation). 
 
 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
RESULTS 
We found ETA and states did not always meet the requirements or statutory 
intent of the TFFF program. Specifically, individual claimants waited to receive 
urgently needed UI benefits during the pandemic, states received TFFF funding 
when they were not eligible, and states’ TFFF accounts have unused fund 
balances that have not been reconciled and closed out for deobligation. As a 
result, we identified $105.1 million in questioned costs.11 We also identified 
nearly $5 billion in funds put to better use12—in states’ TFFF accounts after the 
benefit eligibility period expired13—that should be deobligated and returned to the 
U.S. Department of Treasury.   
 
ETA allowed 4 states to access TFFF funding as reimbursements despite not 
meeting program requirements. For example, 2 states with waiting week 
provisions (Oregon and Louisiana) required by their state laws did not waive 
those weeks, but were reimbursed for UI benefits paid, after making claimants 
wait for their first week of UI compensation—contrary to the intent of the 
program. In addition, 2 states (Delaware and Mississippi) used first-week UI 
compensation amounts paid outside the scope of the program period as the 
basis for reimbursement. As a result, states were reimbursed $105.1 million of 
federal funding they were not eligible to receive.  
 
Furthermore, of the $12.5 billion in funding made available to the 53 SWAs 
through the TFFF program, nearly $5 billion remained unused as of 
July 31, 2023—more than 22 months after the benefit eligibility period expired. 
ETA had no formal plan to reconcile states’ accounts and return funds to the U.S. 
Department of Treasury. These funds could have been put to better use.  
 
These issues occurred because ETA did not have sufficient controls in place to 
ensure states accessing funds were in fact eligible for reimbursements or that 
unused TFFF funds were returned to the federal government.  
 
 
                                            
11 Questioned costs are costs: (A) resulting from an alleged violation of a law, regulation, 
contract, grant, or other document or agreement governing the use of Federal funds; (B) that are 
not supported by adequate documentation (also known as an unsupported cost); or (C) that 
appear unnecessary or unreasonable. 
12 Funds put to better use estimate funds that could be used more efficiently. Some examples 
would be reducing spending, deobligating funds, or avoiding unnecessary spending. 
13 TFFF benefit eligibility period, for states without a waiting week provision in their state law, was 
from the week ending April 4, 2020, through the week ending September 6, 2021. 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
FOUR STATES WERE REIMBURSED 
$105.1 MILLION IN TFFF FUNDING DESPITE 
NOT MEETING CARES ACT REQUIREMENTS 
We found 4 states accessed $105.1 million in TFFF funding—as 
reimbursements—without meeting program eligibility requirements. Specifically, 
waiting week provisions were not appropriately waived or reimbursements 
accessed by the states were based on first-week UI compensation amounts that 
were outside the program period. These are deemed to be questioned costs; see 
Table 4 in Exhibit 1 for this data.   
 
Under the CARES Act, which went into effect on March 27, 2020, the federal 
government would pay 100 percent of an individual claimant’s first week of 
regular UI compensation to states that entered into an agreement with ETA to 
participate in the TFFF program. States were eligible to enter into these 
agreements if state law (including waiver of state law) provided compensation be 
paid to claimants for their first week of regular unemployment compensation 
without requiring a waiting week.14 First week of UI compensation amounts that 
were eligible for reimbursement applied only to the period from March 29, 202015 
to September 5, 2021,16 provided states had agreements in place with ETA. 
 
ETA issued Unemployment Insurance Program Letter (UIPL) 20-20 to offer 
further guidance to states on TFFF program requirements, including how states 
would not qualify for TFFF reimbursements for any weeks of claimant 
unemployment that began before the effective date of a state waiver or change in 
state law, even if that law was worded to apply retroactively prior to 
December 31, 2020.17 According to UIPL 20-20, ETA’s agreement with a given 
state will be terminated immediately upon ETA’s determination that the state law 
(or waiver) does not provide payment to claimants for their first week of regular 
UI compensation without a waiting week and, pursuant to Section 2105 of the 
                                            
14 In total, only 8 of the 53 states did not have a waiting week to waive to participate in the TFFF 
program. 
15 According to UIPL 20-20, “In states where the week of unemployment ends on a Saturday, the 
first week for which states may request reimbursement is the week of unemployment ending 
April 4, 2020. In states where the week of unemployment ends on a Sunday, the first week for 
which states may request reimbursement is the week of unemployment ending April 5, 2020.”  
16 According to UIPL 14-21, “In states where the week of unemployment ends on a Saturday, the 
last week of unemployment for which reimbursement is available is the week ending on 
September 4, 2021. In states where the week of unemployment ends on a Sunday, the last week 
of unemployment for which reimbursement is available is the week ending on 
September 5, 2021.” 
17 On March 11, 2021, ARPA allowed for retroactive application for weeks ending after 
December 31, 2020. This retroactive application effectively removed the controls previously 
established that ensured claimants received timely benefits. 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
CARES Act, the state will be required to return any reimbursements made during 
the period that the state law or waiver was not in effect.  
TWO STATES DID NOT WAIVE THEIR WAITING 
WEEKS, RESULTING IN THE DELAY OF 
$91.2 MILLION IN NEEDED BENEFITS  
We determined that 2 states selected for in-depth analysis—Oregon and 
Louisiana—accessed a total of $91.2 million in TFFF funding as reimbursements 
for weeks when the states did not have a waiting week waiver in effect, and 
claimants waited to receive their first week of regular UI compensation. These 
states were not eligible to receive reimbursement if state law required a waiting 
week or if waiting week waivers were not in place, even if such waivers were 
worded to apply retroactively from March 27, 2020, to December 31, 2020.18 
 
Oregon: Oregon signed an agreement with ETA on March 27, 2020, to 
participate in the TFFF program. Oregon’s state law required individuals to serve 
a waiting week; therefore, Oregon needed to issue a waiver of this provision to 
be eligible to enter into this agreement.  
 
Although Oregon’s intent was to implement the TFFF program timely and waive 
the waiting week, legacy software issues created obstacles causing delays in UI 
benefit delivery. Specifically, Oregon’s computer systems were built on 
technology from 1993 using outdated programming. When Oregon initially 
researched removing the waiting week, it estimated it would take the state 
approximately 4,000 labor hours to complete the effort, and thus was uncertain 
that waiting week compensation could be paid to individual claimants by the end 
of the 2020 calendar year.  
 
Oregon communicated to ETA these challenges, along with its concerns of how 
the delays could impact the availability of federal funding. On October 8, 2020, 
ETA communicated its position to Oregon that “[f]ailure to implement the waiting 
week benefit by December 31, 2020, will result in the Department terminating the 
agreement as it relates to reimbursement for payment of waiting week benefits 
under Section 2105 of the CARES Act.” However, according to Section 2105 of 
the CARES Act, the agreement did not meet the TFFF eligibility requirements 
because Oregon was not able to implement a waiver of the waiting week 
provision.  
 
 
                                            
18 § 4.c UIPL 20-20. 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
According to ETA’s UIPL 20-20:  
 
…the Department reserves the right to terminate this Agreement if 
it determines that the state does not have an adequate system for 
administering the section 2105 program… 
 
ETA elected not to terminate the agreement with Oregon despite the evidence 
that the state’s system was not able to pay first-week UI compensation until 
November 23, 2020—approximately 8 months into the TFFF program. Oregon 
did not access any TFFF federal funding as reimbursements during this 8-month 
period. Nevertheless, ETA did not conclude Oregon breached its contractual 
terms and terminate the agreement—despite Oregon not having an adequate 
system to administer TFFF.  
 
According to an Oregon Employment Department official, the waiting week was 
waived on March 8, 2020, when Oregon’s Governor issued Executive Order 
20-03, declaring a state of emergency. The Oregon official cited Oregon Revised 
Statute 401.186 which states: 
 
If the Governor by proclamation has declared a state of emergency 
under ORS 401.165, the Governor may waive the one-week waiting 
period required by ORS 657.155 for persons making a claim for 
unemployment benefits who reside within the geographical area 
subject to the proclamation and specified by the Governor. 
 
The Executive Order made no mention of waiving the waiting week for UI 
programs, and under Oregon law, the Governor’s authority to waive the waiting 
week is discretionary and not automatic upon the declaration of a state of 
emergency. Nonetheless ETA agreed with the Oregon official’s interpretation of 
Oregon’s state law. According to ETA officials, their practice is to defer to the 
states to interpret state laws. ETA is responsible for federal oversight of state 
administration of UI programs, including ensuring that states did not have a 
waiting week provision in their state laws or the waiting week provision was 
waived for the TFFF program. ETA did not exhibit proper oversight when they 
deferred to Oregon’s interpretation of the Governor’s state of emergency 
declaration as the waiting week waiver.  
 
We determined that Oregon did not waive its waiting week until 
November 23, 2020—when the state began issuing first-week regular UI 
compensation. On December 30, 2020, Oregon’s Governor directed the state’s 
Employment Department (in writing) to retroactively waive the waiting weeks for 
the period March 8, 2020, through the week ending March 13, 2021. However, 
UIPL 20-20 expressly prohibited retroactive waivers of the waiting week during 
the initial TFFF program period under the CARES Act. Oregon’s waiver of the 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
waiting week was therefore only effective from the date of the waiver—on 
November 23, 2020—going forward. 
 
As a result of the waiting week waiver delay, 254,427 Oregon claimants had to 
wait for first-week regular UI compensation from March 8, 2020, through 
November 22, 2020. Therefore, Oregon was not eligible to participate in the 
TFFF program and not entitled to the $90.5 million in TFFF funds it drew down as 
reimbursement for first-week regular UI compensation paid for unemployment 
weeks prior to November 29, 2020, the first week after Oregon’s waiver was in 
effect.19  
 
Louisiana: The Governor of Louisiana signed an agreement with ETA on 
March 28, 2020, to participate in the TFFF program. The Governor issued a 
series of intermittent short-term waivers for first-week regular UI compensation 
periods. Two of these short-term waiting week waivers resulted in gap periods 
when a waiting week waiver was not in effect and individual claimants had to wait 
to receive first-week regular UI compensation. Specifically, the Governor issued 
a waiting week waiver on December 4, 2020, that covered the period beginning 
on December 6, 2020, and ending on December 26, 2020.20 The second 
short-term waiting week waiver occurred on March 16, 2021, when the Governor 
reinstated the waiver and made it retroactively effective January 3, 2021, with an 
ending date of March 31, 2021. As a result, no waiver was in effect from 
December 27, 2020, through January 2, 2021, meaning the weeks ending 
January 2, 2021, and January 9, 2021, were not covered by a waiver.21 However, 
                                            
19 UIPL 20-20 explains that “[f]or states without a waiting week, reimbursement for the first week 
of regular UC is available for weeks of unemployment beginning after the date on which the state 
enters into an agreement with the Department… The agreement is valid only if the state law 
(including a waiver of state law) making the first week compensable is in effect.” (emphasis 
added). Oregon issued the first waiting week waiver on Monday, November 23, 2020. Oregon’s 
unemployment benefit weeks begin Sunday and end on Saturday. Since the first waiver was 
issued on Monday, any UI payments made during the week of November 22-28, 2020, were not 
eligible for reimbursement under the TFFF program. Therefore, November 29, 2020, was the first 
week Oregon was eligible for reimbursement.  
20 The Governor’s proclamation declared that the waiver covered the period beginning Saturday, 
December 5, 2020, and ending Wednesday, December 23, 2020. However, Louisiana’s 
unemployment compensation week begins on Sunday and ends on Saturday. Therefore, the 
waiver covered the period beginning Sunday, December 6, 2020, and ending Saturday, 
December 26, 2020. 
21 Louisiana’s first short-term waiting week waiver expired on December 26, 2020, making the 
agreement invalid on December 27, 2020. Louisiana issued the second short-term waiting week 
waiver on Sunday, January 3, 2021, which validated the agreement again. Reimbursement for 
the first week of regular UC is available for weeks of unemployment beginning after the date on 
which the state enters into an agreement with the Department. Louisiana’s unemployment benefit 
weeks begin Sunday and end on Saturday. Since the second waiver was effective on Sunday, UI 
payments made during the week of January 3-9, 2021, were not eligible for reimbursement under 
the TFFF program. Therefore, the week ending January 16, 2021, was the first week Louisiana 
was eligible for reimbursement. 

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Louisiana drew down approximately $735,000 in TFFF funds to reimburse their 
first-week benefit expenses paid to 4,254 individual claimants during these 
2 weeks for which it was not eligible.  
 
Retroactive Waivers Permitted Under ARPA Had Unintended 
Consequences: On December 27, 2020, the CAA decreased federal funding for 
TFFF program reimbursements from 100 percent to 50 percent. These changes 
unintentionally discouraged some states from participating in the TFFF program 
and issuing waiting week waivers that would have allowed claimants to receive 
the urgent relief the program was originally intended to provide in a timely 
manner. We noted CAA’s reimbursement reduction to 50 percent influenced the 
decisions of Louisiana (1 of the 6 states) and Washington (a surveyed state) to 
opt out of the TFFF program and allow the waiting week waivers to expire. On 
March 11, 2021, ARPA restored federal funding for TFFF program 
reimbursements to 100 percent and allowed for retroactive application22 for 
weeks ending after December 31, 2020.  
 
Louisiana. Louisiana decided not to renew its waiver, which expired on 
December 26, 2020, in anticipation that the enactment of CAA 
(December 27, 2020) would reduce federal reimbursements from 
100 to 50 percent. On March 16, 2021, after the enactment of ARPA and 
restoration of federal reimbursements to 100 percent, Louisiana retroactively 
waived the waiting week and subsequently paid claimants. However, for the 
weeks ending January 16, 2021, to March 13, 2021, there were 13,780 claimants 
who had to wait to receive retroactive first-week regular UI compensation that 
totaled approximately $2.4 million because of Louisiana’s information technology 
programming needs. Of the 13,780 claimants that had to wait, 13,491 claimants 
had to wait 4 months or longer to receive payments totaling approximately 
$2.3 million.  
 
Washington. On March 11, 2021, when ARPA was passed, Washington state 
law automatically waived the first waiting week moving forward. However, 
payments were delayed as the state determined if it could apply state laws to 
retroactively waive the waiting week. Further, Washington then needed to build 
an information technology infrastructure to retroactively waive the waiting week. 
The infrastructure required to pay claimants for the first week of regular UI 
compensation related to weeks ending after December 31, 2020, was not 
                                            
22 In this report “retroactive application” refers to ARPA permitting states to waive waiting weeks 
and establish an effective date prior to the date of the waiver. For example, states could issue 
waivers on or after March 11, 2021, i.e., the date when ARPA went into effect, while making the 
effective date retroactive to January 4, 2021, and then qualify to receive reimbursements under 
the TFFF program for weeks beginning after January 4, 2021. Retroactive application was not 
permitted prior to the enactment of ARPA.  

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operational until May 7, 2021, approximately 2 months after the waiting week 
provision was waived. The total amount of first-week regular UI compensation 
delayed due to these factors was approximately $29.8 million. 
 
Although claimants in Louisiana and Washington waited at least a week to 
receive first-week regular UI benefit payments, ARPA allowed the states to draw 
down federal funds as reimbursement of those delayed payments. 
TWO STATES WERE REIMBURSED $13.9 MILLION IN 
TFFF FUNDS FOR PAYMENTS OUTSIDE THE 
ALLOWABLE PERIOD 
According to ETA guidance, states were eligible to receive reimbursement for the 
weeks ending April 4, 2020, through September 6, 2021, provided a TFFF 
agreement was in place and there was no waiting week provision in their state 
law (including waiver of state law).23 We identified 2 states, Delaware (1 of the 
6 states) and Mississippi (a surveyed state), that accessed $13.9 million in TFFF 
funds as reimbursement for payment of first-week UI compensation that was 
outside of the allowable time period (weeks ending April 4, 2020, through 
September 6, 2021).  
 
Delaware: On March 28, 2020, Delaware entered into an agreement with ETA to 
participate in the TFFF program. In June 2020, Delaware drew down $4.1 million 
in TFFF funding for reimbursement of first-week UI compensation payments 
related to claim weeks that were prior to the TFFF program’s earliest eligible 
week ending April 4, 2020. Specifically, Delaware drew down $74,706 in 
reimbursement for first-week UI compensation payments for the weeks ending 
January 11, 2020, through February 29, 2020, and $4,045,569 for the weeks 
ending March 21, 2020, and March 28, 2020. According to Delaware officials, 
they were unsure as to why the state would have drawn down these amounts for 
periods that did not qualify, and indicated it was possibly due to confusion when 
the pandemic first occurred. 
 
Delaware continued to draw down TFFF funds after the benefit eligibility period 
expired. According to UIPL 14-21, the last week Delaware was eligible to receive 
                                            
23 According to UIPL 20-20, in states where the week of unemployment ends on a Saturday, the 
first week of which states may request reimbursement is the week of unemployment ending 
April 4, 2020, provided an agreement was in place no later than March 28, 2020. According to 
UIPL 14-21, for states without a waiting week provision in their state law, 100 percent 
reimbursement of the first week of regular UI compensation is available through weeks of 
unemployment ending on or before September 6, 2021. In states where the week of 
unemployment ends on a Saturday, the last week of unemployment for which reimbursement is 
available is the week ending on September 4, 2021.  

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reimbursement for first-week UI compensation payments was for weeks of 
unemployment ending on or before September 6, 2021. However, Delaware 
continued to draw down TFFF funding after September 6, 2021. Specifically, 
Delaware drew down approximately $1.4 million during a 41-week period from 
September 13, 2021, through June 21, 2022. These weeks were not eligible for 
reimbursement under the TFFF program. Delaware officials indicated that the 
state’s program did not account for the first-week regular UI benefit payments 
made after the benefit eligibility period expired. See Exhibit 2 for details of these 
drawdowns. 
 
Mississippi: On March 28, 2020, Mississippi entered into an agreement with ETA 
to participate in the TFFF program. Mississippi waived its waiting week provision 
through its governor’s executive order effective March 8, 2020. Mississippi used 
March 8, 2020, as the effective date for the administration of CARES Act UI 
programs to provide a common reference point for identifying filed claims related 
to the COVID-19 pandemic and for consistency of program changes. However, 
UIPL 20-20 established that the earliest week states could be eligible to receive 
reimbursement for first-week UI compensation payments was the week ending 
April 4, 2020. Nonetheless, Mississippi drew down $8.4 million in TFFF 
reimbursement for ineligible weeks ending March 14, 2020, through 
March 28, 2020.  
PRIMARY CAUSES THAT ALLOWED STATES TO 
ACCESS TFFF FUNDING AS REIMBURSEMENTS 
WITHOUT MEETING CARES ACT REQUIREMENTS  
States were able to access TFFF funding as reimbursements without meeting 
CARES Act requirements primarily because ETA did not: (1) implement sufficient 
controls to ensure waivers were in place and thus, accepted retroactive waivers 
not permitted under the program; and (2) validate TFFF reimbursements drawn 
down by states.  
ETA RELIED ON INSUFFICIENT CONTROLS 
REGARDING WAITING WEEK WAIVERS 
ETA indicated their state conformity and compliance team routinely reviewed 
legislation, regulations, and executive orders related to the unemployment 
compensation system for conformity. As part of this process, ETA developed a 
tracker that documented states’ policy changes regarding waivers for states with 
a waiting week law. ETA’s fiscal and actuarial services team used the tracker as 
a compliance control tool to initiate or stop allotments to the states. Our 

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examination of the tracker identified deficiencies with Oregon, Louisiana, and 
Washington. 
 
Oregon: ETA noted that Oregon had a waiting week, with a waiver effective date 
of March 8, 2020, and an expiration date of September 4, 2021. According to 
comments within the tracker, Oregon confirmed that prior to December 31, 2020, 
the states information technology system was programmed to waive the waiting 
week in accordance with state law. The tracker did not indicate the retroactive 
application was used by Oregon or its impact on eligible reimbursements.  
 
Louisiana: ETA noted that Louisiana had a waiting week, with a waiver effective 
date of March 11, 2020, and an expiration date of September 29, 2021. The 
tracker did not document the 2 short-term waivers, or the gap period that was not 
covered by the waiver. 
 
Washington: On December 28, 2020, Washington’s waiting week waiver 
expired, and the state was no longer eligible to participate in the TFFF program. 
Washington continued to pay claimants (despite state law indicating such 
payments were not permitted) and drew down approximately $4 million in TFFF 
funding for reimbursement. If ETA’s tracker was operating appropriately, ETA 
could have prevented Washington from drawing down these funds, which they 
were not eligible to receive at the time.24  
ETA DID NOT REQUIRE STATES TO SUPPORT 
TFFF DRAWDOWN AMOUNTS 
ETA did not require states to provide supporting schedules or monthly 
certifications for TFFF drawdowns. Of the 6 states selected for in-depth analysis, 
all 6 indicated they did not submit documentation to validate the amounts being 
drawn down. We originally surveyed 47 states; however, only 32 states 
responded. We issued a second survey to the 32 responding states. The second 
survey included a question asking whether ETA required the state to submit 
schedules or other details to support that the funds being drawn down from the 
TFFF account were for reimbursement of eligible first-week regular UI claims. Of 
the 32 states, 15 states indicated that such schedules were not provided to ETA. 
                                            
24 The subsequent passage of ARPA on March 11, 2021, provided states the option to 
retroactively waive waiting weeks and receive reimbursement for weeks ending after 
December 31, 2020. As such, the state was ultimately eligible for reimbursement but could not 
have foreseen this option on December 28, 2020.   

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22 MONTHS AFTER THE TFFF BENEFIT 
ELIGIBILITY PERIOD EXPIRED, NEARLY 
$5 BILLION REMAINED IN FUA  
ETA provided the 53 participating SWAs with $12.5 billion in TFFF funding 
through 2 allotments. States were entitled to receive estimated allotments that 
were to be decreased or increased based upon the actual prior monthly amounts 
that should have been provided to the states. As ETA was more focused on initial 
funding than subsequent adjustments, ETA made a minimal number of 
adjustments even though its internal controls were not sufficient to verify the 
reasonableness of allotted amounts. Although states accessed $7.5 billion of 
TFFF funding as reimbursements, nearly $5 billion remained in FUA for states to 
access more than 22 months after the benefit eligibility period expired (see 
Exhibit 3). With no formal plan to reconcile state accounts and return unused 
TFFF funds, these remaining balances are vulnerable to fraud, waste, and 
abuse. Further, the remaining funds could have been put to better use (see Table 
5 in Exhibit 1).  
 
ETA provided $12.5 billion in TFFF funding, which comprised 2 separate 
allotments. The first allotment of $10.6 billion was made available in May 2020, 
and the second allotment of $1.9 billion was made available in August 2021. 
From July 24, 2020, through January 31, 2022, ETA made adjustments on 
7 occasions involving a series of transfers between 26 of the 53 SWAs’ TFFF 
accounts totaling $1.2 billion.25 States were to draw down these funds as 
reimbursement26 to cover the cost of compensation paid to individuals for their 
first week of regular unemployment without a waiting week.27 Overall, the 
53 SWAs drew down $7.5 billion of the $12.5 billion made available, leaving 
nearly $5 billion (40 percent) unused as of July 31, 2023 (more than 22 months 
after the TFFF benefit eligibility period expired on September 6, 2021).  
 
For the 6 states we sampled for in-depth testing (Delaware, Iowa, Louisiana, 
Minnesota, Nevada, and Oregon), ETA made $932.1 million available through 
allotments of $709.8 million and another $222.3 million through transfers of funds 
previously provided to other states. The three ETA initiated transfers that were 
                                            
25 These transfers occurred between state accounts with no net change in overall allotments or 
funding. The last allotment adjustment was January 31, 2022. 
26 States could also be advanced TFFF program funds. On December 27, 2020, the CAA 
decreased federal funding for TFFF program reimbursements from 100 percent to 50 percent. On 
March 11, 2021, ARPA restored federal funding for TFFF program reimbursements to 
100 percent. 
27 States could also receive payment for any additional TFFF program related administrative 
expenses incurred through the Unemployment Trust Fund’s Employment Security Administration 
account.  

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made to 3 of the 6 states (Delaware, Nevada, and Oregon) were each lump sum 
amounts occurring during the period November 25, 2020, through 
January 31, 2022. The 6 states drew down a total of $689 million with 
$243.1 million (26 percent) remaining as of July 31, 2023; see Table 1 for details. 
 
Table 1: Transactions and Remaining Balances for the Six Sampled States 
through July 31, 2023 
 
State 
Allotments1 
Transfers2 
Drawdowns3 
Ending 
Balance 
Percent of 
Funding 
Remaining 
DE 
$23,295,000 
$5,000,000 
($21,503,729) 
$6,791,271 
24% 
IA 
$126,676,000 
0 
($89,090,770) 
$37,585,230 
30% 
LA 
$115,749,000 
0 
($76,858,660) 
$38,890,340 
34% 
MN 
$236,969,000 
0 
($177,948,019) 
$59,020,981 
25% 
NV 
$147,471,000 
$70,000,000 
($194,596,384) 
$22,874,616 
11% 
OR 
$59,620,000 
$147,342,000 
($129,003,622) 
$77,958,378 
38% 
Total 
$709,780,000 
$222,342,000 
($689,001,183) 
$243,120,817 
26% 
Source: ETA allotment and drawdown reports provided to the OIG. 
1 “Allotments” refers to amount of funds ETA made available in the FUA to the states. 
2 “Transfers” refers to allotment adjustments made between states’ accounts to increase or 
decrease state balances.  
3 “Drawdowns” refers to the amount of federal funds the states accessed from FUA for 
reimbursement of first-week regular UI compensation paid out by the states directly to claimants. 
 
Furthermore, of the nearly $5 billion in total TFFF funding that was unused, 
$1.1 billion (approximately 22 percent) represented TFFF funds that 7 of the 
53 SWAs never accessed even though ETA allocated those funds to their 
accounts (see Table 2). 
 

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Table 2: States That Did Not Draw Down TFFF Funds Through July 31, 2023 
 
State 
Funding Provided 
Illinois 
$584,351,000 
Kansas 
$181,068,000 
Arizona 
$129,063,000 
Alabama 
$104,885,000 
Vermont 
$31,203,000 
Alaska 
$24,593,000 
Wyoming 
$15,217,000 
Total 
$1,070,380,000 
Source: ETA provided allotment and drawdown reports to the OIG. 
ETA’S EMERGENCY RESPONSE FOCUSED MORE 
ON INITIAL TFFF FUNDING THAN SUBSEQUENT 
ADJUSTMENTS  
According to Section 2105(c)(2) of the CARES Act, the TFFF program would 
provide states payment either through an advance or reimbursement, as 
determined by the Secretary. Estimated amounts provided to the states would be 
decreased or increased, as the case may be, by the amount the estimated 
allotments deviated from actual amounts the state should have been paid in the 
prior calendar months. ETA guidance provided through UIPL 20-20, emphasizes 
this CARES Act language, specifically: “[a]s a state’s drawdown of allotments is 
monitored, monthly amounts will be adjusted as needed.” This same section of 
the CARES Act also explains that estimates may be made on the basis of such 
statistical, sampling or other method as may be agreed upon by the Secretary 
and the state workforce agency of the state involved.  
 
ETA prioritized getting relief funding to states as quickly as possible during the 
pandemic, and instead of allotting funds on a monthly basis, two estimated 
allotments for the anticipated duration of the program were provided. ETA did not 
reach out to states to coordinate estimates for initial program funding. ETA 
officials stated the following: 
 
“ETA recognized the importance and intended CARES Act goals of 
getting funding to claimants quickly in the early days of the pandemic 
and the structure of the TFFF funding mechanism was set up with 
this in mind. ETA also recognized that states were not in a position to 

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respond to quick turn-around requests for TFFF program estimates 
while processing these massive claims loads and as such did not 
attempt to require this information from states before providing 
access to funding.” 
 
ETA adjusted amounts allotted to the states on 7 occasions28 during the period of 
March 27, 2020, through June 30, 2022, with the majority of ETA’s adjustments 
impacting a minimal number of states. For example, of the 7 total adjustments, 
4 adjustments reallocated allotments between 2 states on each occurrence. 
Twenty-seven of the states did not have any adjustments to their allotments 
during that period.   
 
Throughout the duration of the program, ETA did not coordinate or analyze 
allotment adjustments with the states. Specifically, ETA did not consult the states 
with regards to 1) the need for additional allotments, or 2) the existing allotments 
being in excess of anticipated needs. The absence of ETA’s consultation with 
states regarding their needs for the program limited ETA’s ability to effectively 
estimate allotments and then make well-informed adjustments.  
 
None of the 6 states indicated ETA had consulted with them regarding the initial 
allotment, subsequent adjustments, or sufficiency of prior allotments. Further, 
ETA did not communicate with the states regarding adjustments ETA made to 
their available allotments. This includes 4 of the 6 states that received allotments 
totaling $109.4 million29 less than a month before the TFFF benefit eligibility 
period expired. For the 47 states we surveyed, we received 32 responses. Of 
those 32 responses, 28 (88 percent) stated that ETA did not conduct a state 
review related to the TFFF program. The responses for the other 4 states did not 
specifically mention that a TFFF review was performed. 
 
According to ETA officials, ETA did not receive additional funding to support the 
oversight of the TFFF program until the enactment of ARPA. Despite the 
expansion of pandemic-related UI programs, ETA staffing resources remained at 
similar levels before the pandemic. ETA officials further stated the following: 
 
“ETA notes that it was not provided any additional funding to 
support this program. The same staff had to support the operation 
of this and the other new pandemic-related programs, in addition to 
the regular UI program. In fact, no additional funding for ETA 
operations was provided until the enactment of ARPA in 
                                            
28 Allotment adjustments were made 7/24/2020 (10 states impacted), 7/31/2020 (2 states 
impacted), 11/25/2020 (2 states impacted), 3/11/2021 (9 states impacted), 6/30/2021 (11 states 
impacted), 10/13/2021 (2 states impacted), 1/31/2022 (2 states impacted) 
29 On August 18, 2021, the states receiving additional allotments included: Delaware 
($3.6 million), Iowa ($21.2 million), Nevada ($25.0 million), and Oregon ($59.6 million). 

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March 2021. This information is not provided as an excuse, but as 
realistic context of the challenges facing the operations of these 
programs.” 
 
Although the pandemic presented ETA and states with unprecedented 
challenges, ETA should have coordinated with states to determine funding needs 
for initial allotments and subsequent adjustments. 
ETA’S INTERNAL CONTROLS WERE NOT 
SUFFICIENT TO VERIFY REASONABLENESS OF 
AMOUNTS ALLOTTED OR ENSURE CLOSEOUT OF 
UNUSED TFFF BALANCES 
According to the U.S. Government Accountability Office (GAO’s) Standards for 
Internal Control in the Federal Government, documentation is a necessary part of 
an effective internal control system, and written policies and procedures provide 
the foundation for effective internal controls. ETA did not have adequate 
procedures established for: 
 
• Retaining documentation for review of the initial allotments or 
subsequent adjustments; and 
• Monitoring remaining balances and ensuring unused amounts were 
returned to the federal government.  
UIPL 20-20 required states to maintain records during the administration of the 
TFFF program and make all records available for inspection, examination, and 
audit by such federal officials, employees as the Department may designate, or 
as may be required by law. Further, the guidance requires that records created 
during the administration of TFFF be retained for 3 years after final action 
(including appeals or court action) on the payments. 30 However, ETA did not 
document or maintain a record of calculations and related underlying data used 
to estimate TFFF initial allotments and base decisions for subsequent 
adjustments. Upon our request, ETA was unable to produce supporting 
information for their calculations of initial allotments or subsequent adjustments; 
written policies and procedures for preparing or reviewing allotments and 
adjustments; or procedures for reconciling remaining balances and closing out 
allotments. ETA asserted the initial allotment estimates were developed from UI 
claims and advance claims data. However, the calculations and datasets used to 
determine the states’ initial TFFF allotments (as well as subsequent adjustments) 
                                            
30 According to UIPL 20-20, records may be retained for less than 3 years if copied by 
microphotocopy or by electronic imaging method.  

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were not maintained by ETA. Therefore, we could not analyze and determine the 
validity of ETA’s estimates or adjustments.  
 
ETA officials stated that ETA did maintain the calculations and general data but 
continued to update the estimate file as additional data became available, 
overwriting much of the original data utilized for the initial estimates. Further, ETA 
officials indicated that on an ongoing basis, it monitored the actual drawdowns 
from the initially allotted amounts and made adjustments based upon drawdown 
activity, disbursement figures, and UI first payment reports submitted by states. 
ETA indicated its staff accessed state drawdown data on a daily basis and 
compiled a spreadsheet reflecting the daily activity. This daily spreadsheet was 
used to track drawdowns instead of using ETA 211231 reporting since daily 
transactions were timelier.  
 
Of the 6 states selected for in-depth analysis, none of those states had 
completed a final closeout for their unused balances of TFFF funds in FUA. ETA 
officials stated the following:  
 
ETA will continue to work with Treasury and state partners to 
reconcile TFFF funding and will return any excess funding to the 
general fund in coordination with the Bureau of the Fiscal Service 
once reconciliation for TFFF has been completed. ETA anticipates 
that a substantive amount of the remaining $5 billion will still be 
drawn by states (including 8 states that still had not drawn any of 
their allotted funds as of July 29, 2022) as ongoing reconciliation 
efforts are completed.  
 
However, updated TFFF account balances obtained from ETA through 
July 31, 2023, showed that only $56.4 million had been drawn down among the 
53 states within the 7 months from January 1, 2023, to July 31, 2023, and 
35 states did not have additional drawdowns during that period. For 5 of the 
6 states on which we performed in-depth procedures, we noted that a substantial 
amount of time (approximately 405-789 days) had passed between the states’ last 
drawdown and July 31, 2023 (see Table 3).  
 
 
 
                                            
31 ETA 2112 is a monthly summary of transactions in a state unemployment fund which consists 
of the Clearing Account, Unemployment Trust Fund Account, and Benefit Payment Account. 
UIPL 20-20, Section 4.e required SWAs to report the receipt and disbursement of federal funds 
for the first week of regular UI. 

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Table 3: Total Number of Months between 6 States’ Last Drawdown and 
July 31, 2023 
 
State 
Amount of 
Last 
Drawdown 
Date of Last 
Drawdown 
Number of Days 
Between Last 
Drawdown and 
July 31, 2023 
DE 
$26,639 
June 21, 2022 
405 days 
IA 
$2,148,083 December 6, 2021 
602 days 
LA 
$2,387,282 
October 5, 2021 
664 days 
MN 
$358,916 
June 2, 2021 
789 days 
NV 
$3,533,067 
February 1, 2022 
545 days 
OR 
$5,306 
July 12, 2023 
19 days 
 
Viewed collectively, the minimal dollar amount of drawdowns across 53 states 
and the time lapse since the last drawdowns for 5 of the 6 in-depth states allows 
us to conclude that most of the remaining almost $5 billion will not be drawn 
down for eligible benefit reimbursement.  
 
ETA had not issued formal guidance to states on how to reconcile and close out 
funds, and the agency was not aware of any states completing the necessary 
reconciliations to close out the program and return unused funds. ETA stated 
they will provide UIPL guidance to states on the reconciliation requirements and 
anticipated most of the reconciliations would be conducted once the guidance is 
provided.  
RECOMMENDATIONS 
We recommend the Principal Deputy Assistant Secretary for Employment and 
Training: 
 
1. Work with Oregon, Louisiana, Delaware, and Mississippi to ensure the 
appropriate return of approximately $105.1 million in TFFF 
reimbursements for first-week regular UI compensation paid that were 
associated with ineligible weeks.    
 
2. Establish a deadline by which states are required to perform a timely 
review of past drawdowns and provide evidence that drawdowns were for 

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reimbursement of eligible first-week regular UI compensation paid by the 
state for claim weeks that fell within the TFFF program period. 
 
3. Reassess the eligibility of all states with waiting week provisions according 
to their state laws to ensure that the waiting week was not in effect when 
states accessed TFFF funds prior to December 31, 2020. 
 
4. Ensure that any state drawdowns of the remaining almost $5 billion in 
TFFF funds are only for the reimbursement of first-week regular UI 
compensation paid by the state that fall within the TFFF program period 
(March 27, 2020, through September 6, 2021). 
 
5. Establish a deadline for states to reconcile and close out TFFF accounts 
so ETA can facilitate deobligation of the funding.  
 
6. Establish written procedures and deadlines for the timely return of funding 
for TFFF and future similar programs and consult with OMB and Treasury 
officials to execute the proper return of unused funds that remain within 
states’ accounts.  
 
7. Capture lessons learned from the TFFF program and use the information 
to develop effective internal control procedures to ensure states meet 
program requirements, including eligibility, and have sufficient 
infrastructure in place to pay claimants’ UI benefits without delay for 
similar temporary emergency UI programs that may be established in the 
future.  
 
8. Capture lessons learned from the TFFF program and use the information 
to develop and implement controls to ensure the methodology and 
procedures are documented and maintained for estimating allotments and 
subsequent adjustments for similar temporary emergency UI programs 
that may be established in the future.  
 
 
 

U.S. Department of Labor – Office of Inspector General  
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ANALYSIS OF MANAGEMENT’S COMMENTS  
ETA expressed several concerns regarding the findings of our report. However, 
the agency’s concerns did not result in any changes to our reported results or 
conclusions. Synopses of ETA’s concerns and our corresponding response to 
each are detailed below. 
  
a. ETA stated that the draft report incorrectly indicates in a number of places 
that the TFFF provisions had ended on September 6, 2021, given states 
may have to work through backlogs, appeals, fraud investigations, 
overpayment establishments, and recoveries after the program’s technical 
end date. We acknowledge that such activities will occur after the end of 
the program, and it was not our intention to indicate otherwise. Given 
ETA’s confusion over this report language, we revised the report to clarify 
what was intended as it relates to the end of the TFFF program. 
 
b. ETA stated that the report inaccurately portrays certain states (Oregon 
and Louisiana) as not meeting TFFF eligibility requirements. We disagree 
with ETA on this matter based upon audit evidence obtained. 
 
c. ETA expressed concern regarding our conclusions that Delaware and 
Mississippi accessed TFFF funds that were outside of the allowable 
period. As part of the reconciliation process, ETA plans to review the 
payments and determine if payments for the weeks of eligibility were 
within or outside the allowable timeframe. Our audit evidence supports 
that the period of first-week regular UI benefit payments were outside the 
eligible period.  
 
d. ETA expressed concern regarding our conclusion that Washington 
continued to draw down funds for first-week regular UI benefit payments 
that occurred after the waiting week period expired. Our audit evidence 
supports the finding as stated.  
 
e. ETA stated that our report incorrectly implies that remaining TFFF 
balances are vulnerable to fraud, waste and abuse, and that remaining 
funds could have been put to better use. We disagree with ETA’s position 
on this matter. As evidenced by Delaware, the state was able to draw 
down funds that did not meet eligibility requirements provided through 
legislation. The drawdowns by Delaware ended shortly after our inquiries 
with the state. While we did not identify fraud, waste, or abuse in 
Delaware’s drawdowns, the ability for states to access ineligible funds 
without ETA’s knowledge is a risk for fraud, waste, and abuse.  
 

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NO. 19-23-015-03-315 
This is particularly relevant when approximately $5 billion of funds remain 
accessible by the states without any ETA controls to prevent improper 
drawdowns. In addition, ETA asserted that TFFF funds cannot be used for 
anything else and to infer that funds could be used elsewhere is incorrect. 
We also disagree with ETA’s assertion. While the TFFF provision limits 
DOL’s use of the funds to the TFFF program, our recommendation for 
ETA to deobligate and return the unused TFFF funds to the U.S. 
Department of Treasury would allow the funds to be put to better use 
within the federal government. 
 
ETA agreed or partially agreed with five of the eight recommendations 
(Recommendations 2, 3, 4, 5, and 6) and outlined ETA’s corrective plan of 
action. However, ETA did not agree with Recommendations 1, 7, and 8, and 
partially disagreed with 6.  
 
ETA disagreed with Recommendation 1 and stated that ETA provided 
information indicating Oregon and Louisiana met the eligibility requirement to 
participate in TFFF. In addition, ETA requested that OIG revise the 
recommendation to, “Conduct appropriate reviews and make any necessary 
determinations to appropriately address costs associated with identified issues in 
Oregon, Louisiana, Delaware, and Mississippi related to $105.1 million in TFFF 
reimbursements for first-week regular UI compensation.” We disagree with ETA 
that the recommendation should be revised. Our audit evidence showed that 
Oregon, Louisiana, Delaware, and Mississippi received at least $105.1 million in 
TFFF funds for the first-week regular UI benefit payments that were ineligible for 
reimbursement.  
 
ETA did not agree with part of Recommendation 6, which applies to future 
programs. ETA stated that they are unable to develop written procedures for 
future programs because they will not know specific requirements for future 
legislation. However, ETA’s Office of Unemployment Insurance will formulate 
general guidelines in anticipation of bottlenecks in accounting and reconciliation 
procedures and processes that may be helpful for future programs. We disagree 
with ETA’s assertion that procedures cannot be developed for future programs.  
ETA should have controls in place to establish a timeframe to deobligate and 
return unused funds, regardless of the program.  
 
ETA disagreed with Recommendations 7 and 8. Specifically, ETA stated that it is 
extremely challenging to develop controls for a program that does not currently 
exist and for which the requirements are unknown. However, ETA stated that 
ETA’s Office of Unemployment Insurance will capture lessons learned to help 
inform actions for similar future programs. Therefore, ETA recommended that 
Recommendations 7 and 8 be consolidated and revised to: “Develop a document 
that captures lessons learned from the operation of the TFFF program and use 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
this information to inform technical assistance and operating guidance for similar 
temporary emergency UI programs that may be established in the future.” We 
partially agree with ETA. Although the exact requirements of future programs 
may be unknown, lessons learned from similar programs should provide 
sufficient knowledge to develop controls that are likely to address future 
programs. Therefore, we revised Recommendations 7 and 8. 
 
ETA’s response is included in its entirety in Appendix B.  We appreciate the 
cooperation and courtesies ETA extended us during this audit. 
 
    
 
 
 
 
Rocha & Company, PC 
Gaithersburg, MD 
September 28, 2023 
 
 
 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
EXHIBIT 1: FUNDS PUT TO BETTER USE AND QUESTIONED 
COSTS 
Table 4: Questioned Costs for Ineligible States’ Drawdowns of TFFF 
Allotments 
 
Description 
Amount 
 Funding accessed for periods when 
waiting week was not waived 
$   91.2 million 
 Funding accessed for periods prior to 
the period Federal guidance allowed 
$   12.5 million 
 Funding accessed for periods after the 
period Federal guidance allowed 
$     1.4 million 
Total Questioned Costs32 
$ 105.1 million 
Source: OIG-generated based on Rocha analysis 
 
 
Table 5: Funds Put to Better Use for Allotments that Remain Unused 
 
Description 
Amount 
 Allotments provided by ETA for the 
TFFF program that remain unused as 
of July 31, 2023 
$   4.9 billion 
Total Funds Put to Better Use33 
$   4.9 billion 
Source: OIG-generated based on Rocha analysis 
 
 
 
 
                                            
32 Questioned costs are costs: (A) resulting from an alleged violation of a law, regulation, 
contract, grant, or other document or agreement governing the use of Federal funds; (B) that are 
not supported by adequate documentation (also known as an unsupported cost); or (C) that 
appear unnecessary or unreasonable. 
33 Funds put to better use estimate funds that could be used more efficiently. Some examples 
would be reducing spending, deobligating funds, or avoiding unnecessary spending. 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
EXHIBIT 2: DELAWARE DRAWDOWN OF INELIGIBLE WEEKS 
AFTER SEPTEMBER 6, 2021 
Applied 
Date 
Subsequent 
Drawdowns 
09/13/2021 
29,053 
09/20/2021 
43,553 
09/27/2021 
29,150 
10/04/2021 
32,462 
10/12/2021 
39,110 
10/18/2021 
35,678 
10/26/2021 
32,295 
11/01/2021 
29,855 
11/08/2021 
32,229 
11/15/2021 
25,977 
11/22/2021 
39,542 
12/01/2021 
33,615 
12/06/2021 
29,149 
12/13/2021 
27,427 
12/20/2021 
34,508 
12/27/2021 
36,470 
01/04/2022 
23,852 
01/10/2022 
26,576 
01/18/2022 
43,593 
01/24/2022 
34,875 
01/31/2022 
41,831 
Subtotal 
$700,800 
 
 
Applied 
Date 
Subsequent 
Drawdowns 
02/07/2022 
$35,251 
02/14/2022 
45,729 
02/22/2022 
41,055 
02/28/2022 
44,962 
03/07/2022 
38,732 
03/14/2022 
20,104 
03/21/2022 
46,147 
03/28/2022 
45,455 
04/04/2022 
40,968 
04/11/2022 
41,512 
04/18/2022 
32,983 
04/25/2022 
41,227 
05/02/2022 
34,588 
05/09/2022 
27,333 
05/16/2022 
25,823 
05/23/2022 
25,283 
05/31/2022 
28,655 
06/02/2022 
16,575 
06/07/2022 
25,544 
06/13/2022 
29,928 
06/21/2022 
26,639 
Subtotal 
$714,493 
 
TOTAL SUBSEQUENT DRAWDOWNS: 
$1,415,293 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
EXHIBIT 3: SUMMARY OF TFFF TRANSACTIONS AND ENDING 
BALANCES THROUGH JULY 31, 2023 
 
State 
1st Allotment 
Transfers 
2nd Allotment 
Drawdowns 
Ending Balance 
Percent of 
Funding 
Remaining 
AK 
$23,213,000 
$0 
$1,380,000.00 
$0 
$24,593,000 
100% 
AL 
95,135,000 
0 
9,750,000 
0 
104,885,000 
100% 
AR 
48,434,000 
0 
1,740,000 
(14,550,628) 
35,623,372 
71% 
AZ 
119,393,000 
(20,000,000) 
29,670,000 
0 
129,063,000 
100% 
CA 
1,221,909,000 
432,267,000 
291,290,000 
(1,639,369,833) 
306,096,167 
16% 
CO 
160,679,000 
110,363,000 
3,040,000 
(267,519,097) 
6,562,903 
2% 
CT^ 
137,394,000 
30,000,000 
0 
(151,519,083) 
15,874,917 
9% 
DC 
26,903,000 
14,465,000 
8,880,000 
(30,067,851) 
20,180,149 
40% 
DE 
19,695,000 
5,000,000 
3,600,000 
(21,503,729) 
6,791,271 
24% 
FL 
880,226,000 
(415,000,000) 
0 
(440,248,411) 
24,977,589 
5% 
GA^ 
643,306,000 
(334,426,000) 
0 
(241,244,429) 
67,635,571 
22% 
HI 
103,496,000 
0 
0 
(59,789,017) 
43,706,983 
42% 
IA^ 
105,456,000 
0 
21,220,000 
(89,090,770) 
37,585,230 
30% 
ID 
32,751,000 
0 
0 
(10,829,100) 
21,921,900 
67% 
IL 
322,621,000 
0 
261,730,000 
0 
584,351,000 
100% 
IN 
157,374,000 
23,570,000 
11,110,000 
(152,683,858) 
39,370,142 
20% 
KS 
74,838,000 
0 
106,230,000 
0 
181,068,000 
100% 
KY 
268,383,000 
(110,400,000) 
0 
(102,958,422) 
55,024,578 
35% 
LA 
115,749,000 
0 
0 
(76,858,660) 
38,890,340 
34% 
MA 
323,962,000 
0 
180,520,000 
(241,773,910) 
262,708,090 
52% 
MD^ 
185,338,000 
0 
0 
(93,182,238) 
92,155,762 
50% 
ME 
44,566,000 
0 
2,930,000 
(1,711,001) 
45,784,999 
96% 
MI^ 
360,198,000 
0 
115,590,000 
(226,870,915) 
248,917,085 
52% 
MN 
236,969,000 
0 
0 
(177,948,019) 
59,020,981 
25% 
MO 
132,257,000 
0 
0 
(47,519,587) 
84,737,413 
64% 
MS 
53,702,000 
3,527,000 
0 
(46,630,503) 
10,598,497 
19% 
MT 
25,550,000 
0 
0 
(19,602,232) 
5,947,768 
23% 
NC 
218,215,000 
(50,000,000) 
23,270,000 
(104,993,701) 
86,491,299 
45% 
ND 
25,884,000 
0 
9,280,000 
(28,808,094) 
6,355,906 
18% 
NE 
29,899,000 
0 
2,380,000 
(18,609,007) 
13,669,993 
42% 
NH 
47,885,000 
0 
0 
(35,957,959) 
11,927,042 
25% 
NJ^ 
417,152,000 
0 
0 
(299,273,220) 
117,878,781 
28% 
NM 
47,580,000 
0 
12,330,000 
(41,878,303) 
18,031,697 
30% 
NV 
122,471,000 
70,000,000 
25,000,000 
(194,596,384) 
22,874,616 
11% 
NY 
697,563,000 
(3,500,000) 
305,780,000 
(362,638,182) 
637,204,818 
64% 
OH 
302,912,000 
0 
59,220,000 
(224,440,916) 
137,691,084 
38% 
OK 
193,020,000 
(10,000,000) 
0 
(118,993,112) 
64,026,888 
35% 

U.S. Department of Labor – Office of Inspector General  
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NO. 19-23-015-03-315 
EXHIBIT 3: SUMMARY OF TFFF TRANSACTIONS AND ENDING 
BALANCES THROUGH JULY 31, 2023 
(CONTINUED) 
 
 
State 
1st Allotment 
Transfers 
2nd Allotment 
Drawdowns 
Ending Balance 
Percent of 
Funding 
Remaining 
OR 
0 147,342,00034 
59,620,000 
(129,003,622) 
77,958,378 
38% 
PA 
467,177,000 
0 
96,900,000 
(293,696,357) 
270,380,643 
48% 
PR 
0 
81,503,00035 
4,170,000 
(9,876,426) 
75,796,574 
88% 
RI 
42,167,000 
35,000,000 
22,480,000 
(65,083,597) 
34,563,403 
35% 
SC 
130,027,000 
(10,000,000) 
0 
(88,692,717) 
31,334,283 
26% 
SD 
13,719,000 
0 
0 
(8,930,500) 
4,788,500 
35% 
TN 
103,905,000 
30,000,000 
31,780,000 
(104,861,534) 
60,823,466 
37% 
TX 
882,344,000 
(167,342,000) 
137,680,000 
(616,760,796) 
235,921,204 
28% 
UT 
51,279,000 
0 
11,990,000 
(25,145,976) 
38,123,024 
60% 
VA 
202,375,000 
134,178,000 
42,560,000 
(158,579,692) 
220,533,308 
58% 
VI 
86,000 
3,500,000 
0 
(2,641,660) 
944,340 
26% 
VT^ 
0 
24,953,00036 
6,250,000 
0 
31,203,000 
100% 
WA 
460,857,000 
0 
0 
(335,173,424) 
125,683,576 
27% 
WI 
137,652,000 
(30,000,000) 
15,880,000 
(73,215,525) 
50,316,475 
41% 
WV 
49,818,000 
5,000,000 
0 
(49,818,000) 
5,000,000 
9% 
WY^ 
10,797,000 
0 
4,420,000 
0 
15,217,000 
100% 
TOTAL 
$10,574,281,000 
$0 $1,919,670,000 
($7,545,139,994) 
$4,948,811,006 
40% 
 
^ Indicates a state with no waiting week in its existing state law. In total, only 8 of the 53 states 
did not have a waiting week to waive to participate in the TFFF program.  
 
 
 
 
                                            
34 This transfer was made on 11/25/2020 and represents the first funding made available to the 
Oregon SWA. 
35 This transfer was made on 7/24/2020 and represents the first funding made available to the 
Puerto Rico SWA. 
36 This transfer was made on 7/24/2020 and represents the first funding made available to the 
Vermont SWA. 

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APPENDIX A: SCOPE AND METHODOLOGY 
SCOPE 
The audit of TFFF covered the period of March 27, 2020, to September 6, 2021. 
To determine the amount of TFFF allotments that remained accessible to states 
following the end of the program (September 6, 2021), we obtained reports from 
ETA that identified total allotments (including adjustments) made to the states, 
amounts accessed, remaining balances as of July 31, 2023, ETA internal reports 
utilized to monitor the program, and surveys.  
 
The objective of the audit was to determine if ETA ensured states met TFFF 
program requirements and used funding according to the statutory intent of the 
CARES Act and its related subsequent legislation. 
METHODOLOGY 
We conducted this performance audit in accordance with generally accepted 
government auditing standards. Those standards require that we plan and 
perform the audit to obtain sufficient, appropriate evidence to provide a 
reasonable basis for our findings and conclusions based on our audit objective. 
We believe that the evidence obtained provides a reasonable basis for our 
findings and conclusions based on our audit objective.  
 
This performance audit was conducted remotely and covered 6 states 
judgmentally selected by the OIG for in-depth testing. In addition, we sent 
surveys to an additional 47 states. To answer our audit objective, we reviewed 
the CARES Act and related subsequent legislation, ETA guidance, ETA program 
monitoring reports, state agreements and executive orders, program funding, and 
states’ financial reports. 
 
Furthermore, we analyzed datasets used by the states to draw down funds and 
tested those databases at the individual payment level to verify that those 
amounts were first-week compensation amounts eligible for reimbursement 
under the program.  
SELECTION OF SIX STATES 
To perform our audit, the OIG judgmentally selected 6 states—Delaware, Iowa, 
Louisiana, Minnesota, Nevada, and Oregon—for in-depth analysis based on: 
 

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• the amount of TFFF funds that states received from March 27, 2020, 
through July 31, 2021, stratified into the highest, middle, and lowest 
ranges; and   
• the extent to which the states had not been selected for review in previous 
OIG audits. 
 
Our sampling plan was designed under the assumption of Moderate to High Risk. 
This called for a design with 95 percent confidence and 7 percent relative 
precision of estimate. We used multi-stage sampling comprising 3 levels from 
which simple random samples were selected. When the testing was complete, 
our statistician projected differences to the population using appropriate 
statistical estimation formulas, unless differences were clearly inconsequential.  
STATES SURVEYED 
We sent surveys to the remaining 47 states to verify which states participated in 
the program, the level of oversight and support provided by ETA to those states, 
allotment amounts made available, funding accessed by states, remaining 
balances, and any challenges with implementing the program or instances of 
non-compliance (including assessing retroactive implementation) states may 
have experienced. 
DATA RELIABILITY 
Methods of determining data reliability were dependent upon availability of 
information at the state level. However, the primary method of ensuring data 
reliability involved reconciliations of first-week compensation datasets to the 
amounts drawn down from the TFFF account as identified in the states’ 
Automated Standard Application for Payments (ASAP) system. Key reports 
received from ETA were compared to source documents received at the state 
level, as well as to survey responses.  
INTERNAL CONTROLS 
A performance audit includes an understanding of internal controls considered 
significant to the audit objective and testing compliance with significant laws, 
regulations, and other requirements. In planning and performing our audit, we 
considered whether internal controls significant to the audit objective were 
properly designed and placed in operation. This included reviewing policies and 
procedures. We confirmed our understanding of these controls and procedures 
through interviews and the review and analysis of documentation. The objective 

U.S. Department of Labor – Office of Inspector General  
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of our audit was not to provide assurance on internal controls; therefore, we did 
not express an opinion on ETA’s internal controls. Our consideration of internal 
controls for administering key CARES Act UI programs would not necessarily 
disclose all matters that might be significant deficiencies. Because of the inherent 
limitations on internal controls, or misstatements, noncompliance may occur and 
not be detected. 
CRITERIA 
• Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 
116-136 (March 27, 2020)  
• Consolidated Appropriations Act, 2021, Division N, Title II, Subtitle A, 
Chapter 1, the Continued Assistance for Unemployed Workers Act of 
2020, Public Law 116-260 (December 27, 2020)  
• American Rescue Plan Act of 2021, Public Law 117-2 (March 11, 2021) 
• GAO-14-704G: Standards for Internal Control in the Federal Government 
(September 2014) 
• Unemployment Insurance Program Letter 14-20: CARES Act of 2020 – 
Summary of Key Unemployment Insurance (UI) Provisions and Guidance 
Regarding Temporary Emergency State Staffing Flexibility   
• Unemployment Insurance Program Letter 20-20: CARES Act of 2020 – 
Operating, Financial, and Reporting Instructions for Section 2105: 
Temporary Full Federal Funding of the First Week of Compensable 
Regular Unemployment for States with No Waiting Week, of the CARES 
Act of 2020 
• Unemployment Insurance Program Letter 9-21: Continued Assistance for 
Unemployed Workers Act of 2020 (Continued Assistance Act) – Summary 
of Key Unemployment Insurance (UI) Provisions 
• Unemployment Insurance Program Letter 14-21: American Rescue Plan 
Act of 2021 (ARPA) – Key Unemployment Insurance Provisions 
PRIOR RELEVANT COVERAGE 
During the last 4 years, the OIG has issued 3 reports of significant relevance to 
the subject of this report. Those reports are the following: 
 
1. Advisory Report — CARES Act: Initial Areas of Concern Regarding 
Implementation of Unemployment Insurance Provisions, Report  
No. 19-20-001-03-15 (April 21, 2020), available at: 
https://www.oig.dol.gov/public/reports/oa/2020/19-20-001-03-315.pdf;  
 

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2. COVID-19: More Can Be Done to Mitigate Risk to Unemployment 
Compensation under the CARES Act, Report No. 19-20-008-03-315 
(August 7, 2020), available at: 
https://www.oig.dol.gov/public/reports/oa/2020/19-20-008-03-315.pdf; and 
 
3. COVID-19: States Struggled to Implement Cares Act Unemployment 
Insurance Programs, Report No. 19-21-004-03-315 (May 28, 2021), 
available at: https://www.oig.dol.gov/public/reports/oa/2021/19-21-004-03-
315.pdf. 
 
 
 

U.S. Department of Labor – Office of Inspector General  
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APPENDIX B: AGENCY’S RESPONSE TO THE REPORT 
 

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U.S. Department of Labor – Office of Inspector General  
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REPORT FRAUD, WASTE, OR ABUSE  
TO THE DEPARTMENT OF LABOR 
 
 
 
 
Online 
https://www.oig.dol.gov/hotline.htm 
 
Telephone 
(800) 347-3756 or (202) 693-6999 
 
Fax 
(202) 693-7020 
 
Address 
Office of Inspector General 
U.S. Department of Labor 
200 Constitution Avenue NW 
Room S-5506 
Washington, DC 20210

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