PHOENIX — A recent audit found that the Arizona Department of Economic Security delayed launching a new unemployment portal by one year because of several issues.
The department has been under scrutiny amid growing concerns that the new system is delaying unemployment benefits for an unknown number of people.
ABC15 reported last week that the department is aware of issues impacting a "limited number" of claimants who have not received unemployment benefits.
For a look inside the numbers of unemployment benefits paid out by DES this year, watch the video player below:
The department launched a new platform to process unemployment benefits in September, called CACTUS, that is supposed to streamline the process for applying and tracking benefits.
However, an audit this past summer revealed that DES has worked with a contractor since 2022 to develop and implement the new unemployment program.
Another audit done in September revealed that the department delayed the launch of the program from October 2024 to September 2025 because of “issues with data conversion and the amount of changes needed to bring the new IT system into compliance with state laws and regulations.”
The new system was supposed to increase availability, communication, improve access to case information, and simplify navigating multiple systems.
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The September audit found that DES was untimely in issuing appeal decisions for unemployment insurance in 2024, “The Department is under corrective action plans by both the U.S. Department of Labor (DOL) and the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) related to the untimeliness of issued unemployment insurance and nutrition assistance appeals, respectively,” the audit said.
State and federal laws require appeal decisions to be issued within a certain timeframe.
According to the audit, 80% of decisions should be issued within 45 days.
It is unclear how many appeals the department currently has or what the current timeframe is for a decision.
In a response to the audit, DES agreed to follow the auditor's recommendations on numerous findings.
ABC15 has reported on staffing concerns with DES as the department laid off hundreds of workers this past summer due to federal funding cuts.
Tiana Boyd has been trying to get unemployment benefits for weeks but has not received payment.
Boyd tells ABC15 she is struggling to talk to someone with the department.
“I’ve sent numerous emails. I've gone to that physical location off 7th Street, only to find that there's no actual in-person office, nobody I can speak to,” said Boyd. “The lack of access and responsiveness is growing.”
A sign posted on the door of a DES location off of 7th Street in Phoenix reads: “Unemployment Insurance does not have physical offices.”
Boyd was doing clinical research within project management but was laid off this past summer and applied for benefits in September.
“After November, I'm living off credit cards, but now payments are due on credit cards. So I have, I have nothing. I have no income at all coming in,” said Boyd.
She said she has sent out hundreds of resumes already.
“Hopefully, I do become employed soon," Boyd said. "That's the goal, of course, you know, then how am I even going to dig myself out of this hole that I've created?”
DES responded by email Thursday evening saying that the federal funding cuts reduced the adjudication and call center staff by approximately 60%.
“Without more team members, our diminished capacity will continue to adversely affect Arizonans in need,” a spokesperson said.
DES clarified that the overpayment issue is impacting approximately 450 people, adding that is less than 2% of individuals filing on a weekly basis.
The department said that unemployment claims have only been filed online, by phone and by mail. The department said there are DES Resource Centers and the ARIZONA@WORK offices have computers and phones available for people who need to file their claims.
"We are utilizing all available resources to tackle the current challenges and are committed to providing claimants with their benefits as swiftly as possible, recognizing their reliance on temporary assistance during periods of unemployment," said DES.
