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ALLEGATION OF MISUSE OF UNEMPLOYMENT INSURANCE FUNDS IN THE STATE OF MARYLAND
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Our audit determined that the office building at 1100 North Eutaw
Street, Baltimore, Maryland (Eutaw Property), was purchased with Federal
funds and that the State of Maryland’s DLLR
(1) did not use this property as originally authorized by moving
non-DET personnel into the building, and (2) did not reimburse
approximately $967,426 to the U.S. Department of Labor (DOL) for the
maintenance and building operating expenses for space occupied by non-DET
personnel for the period April 1997 through June 30, 2000.
We also determined that two UI employees were discharged for various
reasons and subsequently rehired by DLLR or UI. OIG has no reason to
question DLLR’s handling of employee A. However, employee B was
discharged, rehired by DLLR, and improperly billed to UI in the amount of
$50,525.
We recommend that the Assistant Secretary for Employment and Training
ensure that Maryland DLLR officials: (1) obtain the required approval
and/or instructions from Employment and Training Administration (ETA) as
detailed in Title 29 Code of Federal Regulations § 97.31, as to the use of
the Eutaw Property; (2) reimburse DOL $967,426 for their portion of the
maintenance and operating expenses relating to the non-DET personnel
occupying space at the Eutaw Property from State Fiscal Years (SFYs) 1997
through 2000, and any future costs allocable to non-DET occupants; and (3)
reimburse UI $50,525 for wages incorrectly billed on behalf of employee B
and any subsequent charges to DOL grant programs.
DLLR agreed with recommendations 1 and 3, but disagreed with
recommendation 2. Therefore, recommendation 2 is unresolved and will be
addressed in ETA’s formal resolution process.
(Report No. 03-00-010-03-315, issued September 25, 2000)
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PDF ] 9 pp. {19 k}
OIG conducted an audit resulting from a hot line complaint alleging
misuse of Federal funds at the State of Maryland, Department of Labor,
Licensing and Regulation (DLLR), Division of Employment and Training
(DET), Office of Unemployment Insurance (UI).
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