A stinging audit of the state’s labor department has triggered the replacement of supervisors, new written policies and upgrades to phone and computer systems, according to The Tennessean.
In a 16-page corrective action plan made public Monday, the Department of Labor and Workforce Development details efforts to fix problems documented by auditors. Those problems included the failure to monitor fraud and overpayment of $73 million in jobless benefits — including to dead people — and delays in sending checks to thousands of out-of-work Tennesseans. The department also didn’t follow guidelines when awarding some contracts, the audit found.
The action plan outlines how the department is responding to all 12 findings in the audit and said improper payments and a backlog of claims have been dramatically reduced.
“This represents not only addressing these specific issues, but also how the department is changing how it does business,” said Jeff Hentschel, labor department spokesman. “This definitely represents staff changes, technology changes, policies and procedural changes, and it covers a lot of territory.”
Hentschel said many fixes were already underway when the audit landed in late March and that recently appointed Commissioner Burns Phillips has “created a lot of momentum when it comes to stepping back, evaluating our procedures and staff, and making these corrective actions.”
Just before publication of the audit, former Commissioner Karla Davis and two top staffers resigned. Other high-level staff changes have followed. And the department is still embroiled in two lawsuits by former employees claiming that leadership discriminated against white employees.