A new North Carolina Unemployment Audit is drawing attention to ongoing problems within the state’s unemployment system. According to two reports released by the North Carolina Office of the State Auditor, thousands of unemployment claims were not paid within federally required timeframes, while more than $47 million in fraudulent unemployment benefits were improperly distributed.
The findings highlight challenges that have persisted for years and could impact workers across North Carolina, including residents throughout Moore County, Southern Pines, Aberdeen, Pinehurst, and the greater Sandhills region.
North Carolina Unemployment Audit Reveals Continued Payment Delays
The audit reviewed unemployment compensation payments made between July 1, 2024, and November 30, 2025. During that period, auditors found that 28 percent of initial unemployment payments failed to meet the federal requirement that benefits be issued within 14 days.
Of the 111,413 initial payments reviewed, more than 31,000 were delayed. More concerning, auditors found that over 13,500 payments took longer than 35 days to reach recipients.
The delayed payments represented approximately $12.2 million in benefits that were not delivered on time to North Carolinians who had lost their jobs.
While the state has improved since a previous audit found a 43 percent delay rate, North Carolina still remains out of compliance with federal standards. State records show North Carolina has failed to consistently meet federal unemployment payment timeliness requirements since 2011.
More Than $47 Million in Fraudulent Payments Identified
The second audit focused on fraud and improper payments within the unemployment insurance system. Auditors identified more than $47 million in fraudulent overpayments made during the audit period.
State Auditor Dave Boliek said the findings demonstrate the need for stronger oversight and accountability within the unemployment benefits program.
According to the audit, fraudulent claims continue to create financial losses while also placing additional strain on a system already struggling with timely payments.
Auditors recommended improvements to fraud detection processes, stronger internal controls, and additional monitoring of claims before payments are released.
Recommendations for Improvement
The North Carolina Office of the State Auditor issued several recommendations to the Division of Employment Security. Those recommendations include reviewing claims processing procedures, identifying the causes of delays, improving staffing and workload management, and strengthening fraud prevention measures.
The Division of Employment Security has reportedly agreed to implement the recommendations outlined in the reports.
For residents who depend on unemployment benefits after losing a job, timely payments can make a significant difference when it comes to paying mortgages, rent, utilities, and other household expenses.
The findings from this North Carolina Unemployment Audit will likely remain a topic of discussion among lawmakers and state leaders as they work to improve the system and restore public confidence.
For more information, visit the North Carolina Office of the State Auditor or the Division of Employment Security.
Stay connected with Star 102.5 and Sandhills News for continued coverage of issues impacting North Carolina and the Sandhills.
