In its report for 2009, J. Scott Magliari & Company found 544 employers with outstanding assessments amounting to $800,007.
Of this amount, assessments were $45,900 and waived assessments were $56,074 with only $9,865 in collections.
In 2008, it was reported that of the $820,046 ending balance in 2008, $164,173 were waived assessments, $83,260 in assessments, and $13,293 in collections.
The audit stated in its report that the collections were only 15 percent of total deductions for FY’09 while waived assessments constitute 85 percent.
“This indicates that the majority of the assessments are being waived rather than being collected,” the audit said.
Moreover, it found $782,232 or 98 percent of outstanding assessments were over 90 days overdue.
The report hinted that fraud could occur and remain undetected in a timely manner as there are no monitoring policies and procedures in place to prevent fraud and misstatement.
The annual financial and compliance audit was conducted by J. Scott Magliari & Company in accordance with OMB-A-133 with follow-up letters sent to agency on Oct. 14, 2010 and May 17, 2011 that remain unanswered.
