More than $1 billion in Georgia pandemic unemployment claims had not been reviewed to verify eligibility as of June 30, 2025, according to the state's Single Audit Report. The audit, released by the State Accounting Office, found that auditors could not confirm whether these claims remain unverified, and highlighted ongoing weaknesses in the Georgia Department of Labor's (GDOL) oversight of federal pandemic benefits.
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The finding raises questions about the state's ability to ensure proper use of federal relief funds and the risk that the federal government could seek repayment if ineligible claims are discovered.
The issue is part of a broader struggle by Georgia agencies to manage pandemic-era unemployment programs, which saw a surge in claims and exposed gaps in the state's aging benefits system. The audit comes as the GDOL faces scrutiny over its slow modernization efforts and recent criminal cases involving fraudulent benefit claims by public officials and employees.
Audit Details and System Weaknesses
The March 24 audit report stated there was not "sufficient appropriate audit evidence to support the balances and financial activity of the unemployment compensation fund." Auditors found that internal controls over recording and reporting receivables, revenue, unearned revenue, benefit expenses, and payables were "not adequately designed or operating effectively."
The GDOL acknowledged in the audit that its current unemployment insurance IT system, developed in 1982, relies on outdated mainframe technology. This has forced staff to manually validate and process Pandemic Unemployment Assistance (PUA) and Disaster Unemployment Assistance (DUA) documentation, contributing to delays and verification backlogs. The department said these technology limitations have made it difficult to implement automated controls and corrections.
"We are optimizing our team members, and we're continuing to move this department forward, so that it moves at the speed of business, and so that workers can have their benefits, the resources that they rely on from the Georgia Department of Labor reliably and efficiently."
β Barbara Rivera Holmes, Georgia Labor Commissioner
Fraud Cases and Federal Oversight
The audit's findings come amid several high-profile fraud cases involving pandemic unemployment benefits in Georgia. Three former state legislatorsβSharon Henderson, Karen L. Bennett, and Dexter L. Sharperβpleaded guilty to federal charges of making false statements to collect pandemic unemployment funds. Henderson, a Covington Democrat, admitted to collecting $17,811 in benefits while failing to disclose income, while Bennett and Sharper collected $13,940 and $13,825, respectively. Bennett and Sharper resigned after being charged; Henderson was suspended by Governor Brian Kemp but did not resign.
In a separate case, eight unnamed state employees were indicted in 2023 for collecting a total of $107,931 in pandemic unemployment benefits while working full-time for the state, according to the Georgia Office of the Inspector General.
Sheila Weinberg, CEO of Truth in Accounting, warned that the lack of verification could have financial consequences for the state. "The federal government could come back and claw that money back if it found problems," Weinberg said.
Department Response and Modernization Efforts
Republican Labor Commissioner Barbara Rivera Holmes, appointed by Governor Kemp, has said the department is "aggressively" modernizing its systems. In a November 2025 statement, Holmes announced that the modernization project would be completed in fall 2026. However, Democratic challenger Nikki Porcher has argued that progress has been too slow.
The GDOL's strategic plan emphasizes rebuilding trust and modernizing operations, but the department did not respond to requests for comment on whether any of the unverified claims have since been reviewed.
Broader Fiscal Context
The lack of verification was also noted in Truth in Accounting's annual State of the States report, which gave Georgia a "B" grade for fiscal health. The report found the state had $52.8 billion available to pay $36.1 billion in bills, resulting in a taxpayer surplus of $4,900. The teacher's pension plan posted a return of more than 14% on investments, and unfunded retiree healthcare liabilities decreased by $1.1 million due to revised actuarial assumptions.
The next milestone for the GDOL is the scheduled completion of its IT modernization project in fall 2026.
