Wed Dec 17 07:10:00 UTC 2025: Summary:

A recent state audit reveals that California’s Employment Development Department (EDD) wasted $4.6 million by continuing to pay monthly service fees for thousands of unused cellphones and hotspots acquired during the COVID-19 pandemic. The EDD purchased the devices to facilitate remote work for call center employees dealing with a surge in unemployment claims. However, they failed to monitor device usage, resulting in a large surplus of unused devices for which they continued to pay. Auditors found that as of April, the EDD had nearly three times more active devices than call center employees. The EDD has since begun to address the issue by canceling service plans for unused devices.

News Article:

California EDD Wasted Millions on Unused Cellphones, Audit Finds

SACRAMENTO – California’s Employment Development Department (EDD) squandered $4.6 million on unused cellphones and wireless hotspots acquired during the COVID-19 pandemic, a new state audit has revealed. The audit, prompted by a tip, found the EDD continued paying monthly service fees for thousands of devices that went unused for months, even years.

During the pandemic, the EDD purchased 7,224 devices to enable call center employees to work remotely and process a massive influx of unemployment claims. However, auditors discovered that half of these devices went unused for at least two years, with 25% unused for three years, and nearly 100 never used at all. The audit, covering 54 months of invoices, showed that the EDD had roughly 2,000 more devices than call center employees from the outset.

“Although obtaining the mobile devices during COVID-19 may have been a good idea to serve the public, continuing to pay the monthly service fees for so many unused devices, especially post-COVID-19, was wasteful,” the audit stated.

EDD officials claimed they were unaware of the excessive spending, but auditors pointed to monthly Verizon invoices clearly indicating which phones were not being used.

The EDD began taking corrective action in April, canceling service plans for 2,825 devices and implementing a new policy to terminate service for devices unused for 90 days. The audit was included in the California State Auditor’s regular report on improper activities by state agencies and employees.

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