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Audit: State overpays $73m in unemployment

NASHVILLE, Tenn. (AP) -- A state audit has found Tennessee's Department of Labor and Workforce Development mismanaged the unemployment program, causing overpayments that exceed $73 million.

The report issued Thursday by the state comptroller's office said the problems have "threatened the integrity" of Tennessee's unemployment program.

Three top officials at the department resigned last week -- Commissioner Karla Davis, Deputy Commissioner Alisa Malone and the assistant commissioner overseeing the unemployment program, Turner Nashe. The Tennessean (http://tnne.ws/14zAt4Y) reported the resignations followed internal departmental disputes over management of the unemployment benefits program.

The audit report found $73.4 million in unemployment benefits went to people who weren't entitled to them because of fraud and the department's errors over the past three years. It also said overpayments were up significantly over the past three years.


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