A state audit of the Colorado Department of Labor and Employment criticized the agency for its financial handling of its two largest programs: the Family & Medical Leave Insurance and Unemployment Insurance.

The Office of the State Auditor announced Wednesday the results of its audit on CDLE, finding it found many problems with its accounting and financial reporting.

The agency is taking the audit concerns seriously, a CDLE spokesperson said in an emailed statement.

“Both the Unemployment Insurance (UI) and the Family and Medical Leave Insurance (FAMLI) divisions have already taken steps to address the issues identified by the Office of the State Auditor,” the statement said.

FAMLI provides family and medical benefits to eligible employees. The state’s auditor office said it found CDLE did not make sure employers that were supposed to be registered with the program were registered, as well as make sure 4,100 employers were registered to pay their insurance premiums and fines for not complying.

The CDLE also did not properly document it owed $127 million to employers exempted from the Family and Medical Leave Insurance Program.

“The FAMLI Division is documenting accounting procedures internally to provide for better and more accurate controls and establishing better processes to ensure employer compliance,” a CDLE spokesperson said.

State auditors also found CDLE’s Unemployment Insurance program was not properly calculating what employers owed — leading to 30,000 employers having incorrect insurance rates.

Some employers were overpaying by about $5 million, according to the Office of the State Auditor, while others were underpaying due to programming errors in CDLE’s MyUI+ system.

“The UI Division has already begun taking necessary steps to resolve the employer UI experience rating discrepancies, establishing credit or adjusted amounts and has identified all affected employers,” CDLE’s spokesperson said.

State auditors recommended the agency to create procedures that met with state regulations and enforce compliance on the FAMLI program and find which employers were affected by calculation errors and make adjustments to recompense employers, as well as ensure employers will pay the correct insurance premiums and rates in the future.