Unemployment Insurance (UI) State Quality Service Plan (SQSP)

ET HANDBOOK NO. 336

18^th Edition

CHAPTER II - REPORTING

I. INTRODUCTION

Chapter II of the SQSP Handbook provides guidelines for the reports and data elements to be used for financial reporting of state UI program activities.

II. SUBMITTAL INSTRUCTIONS

A Use of Computer Printouts in Lieu of Prescribed Forms. States may submit financial report information on computer printouts instead of the ETA 9130 and SFs,270 and 424. However, such printouts must contain the identical information and format as the report forms, including the certification and authorized signature blocks, and must adhere to submittal requirements described below.

B. Electronic Submittal. States submit the UI-3 and the UI-1 worksheet through UIRR. This ensures that the reported data are consistent. UIRR makes output reports available for review and correction before electronic transmission to the NO. In addition, electronic submittal is available for the ETA 9130 via the Enterprise Business Support System. Electronic submittal is not available for any other Federal standard forms.

C. Number of Copies and Recipient. For all standard forms (e.g., SF 424), submit an original and 2 copies to the ETA regional office. The NO electronically receives UIRR and ETA 9130 reports, which the regions also may access.

D. Due Dates. The UI-3 worksheet is due within 30 days after the end of the reporting quarter. The ETA 9130 is due 45 days after the end of the reporting quarter. The request form, SF 270, is a voluntary report.

E. Program Management Systems (PMS) Document Numbers. The following is a list of PMS Document Numbers that the national office will use to issue obligational authority and that states will use for the ETA 9130 and when drawing cash. Definitions of program categories on the UI-3 are provided in Section IV., Paragraph H, Time Distribution Definitions.

PROGRAM	PMS DOCUMENT NO.
UI State Administration	UIxxxxxxI0
UI National Activities	UIxxxxxFN0
TAA Benefits	UIxxxxxxX0
ATAA Benefits	UIxxxxxxY0
Disaster Unemployment Assistance (DUA) Administration	UIxxxxxxJ0
Disaster Unemployment Assistance (DUA) Benefits	UIxxxxxxR0

NOTE. ETA code numbers are assigned to each separate DUA disaster when funds are provided to the states.

III. REPORTS

Facsimiles of the forms and completion instructions can be found in Appendix II. Additionally, standard forms may be downloaded from www.whitehouse.gov/omb/grants/index.html and the ETA 9130 form and instructions may be downloaded from www.doleta.gov/grants/docs/ETA-9130-ESandUI.pdf.

A. UI-3, Quarterly UI Above-base Report

1. Purpose. This report provides information to ETA on the number of staff years worked and paid for various UI program categories, and provides the basis for determining above-base entitlements.

2. Reporting Instructions. States are required to report the number of quarterly staff years worked and paid and the number of year-to-date staff years paid. ETA does not prescribe the type of time distribution reporting system used by states to generate the required data. However, the system used must be capable of providing data in the required detail, and the data must fairly and accurately represent the utilization of staff years. Data must be traceable to supporting documentation, e.g., time distribution and cost reports. States using sampling, allocation, and estimating techniques to spread actual hours to the UI programs must have documentation describing the techniques and procedures being used.

3. Report Completion Instructions. States are to enter only data which cannot be obtained elsewhere in UIRR or calculated from existing data.

B. ETA 9130, Financial Status Report. This report is a government-wide standard form prescribed for use by OMB Circular No. A-102, and by Department of Labor Regulations at 29 CFR 97.41(b). A separate ETA 9130 is submitted each quarter for each fiscal year of funds (including the current fiscal year), until such time as all unliquidated obligations (resources on order) have been liquidated and a final ETA 9130 is submitted. States submit a final ETA 9130 when all financial activity has ceased and the unobligated balance is zero, and the following equation is satisfied: obligational authority = accrued expenditures = cash received.

ETA is requiring states to report administrative expenditures on the accrued expenditure basis, per 29 CFR 97.41(b)(2). The ETA 9130 submitted for DUA, TAA and ATAA payments must report them on the cash basis, i.e., actual cash benefits paid during the reporting period.

ETA 9130s are to be submitted for each line item for which the state agency has been issued obligation authority, including the following:

• Unemployment Insurance Operations. All UI administrative funds are to be included on the ETA 9130, including funds for TAA and ATAA benefits administration, but excluding UI National Activities and cooperative agreements. UI program income and associated costs also must be reported on the ETA 9130. On line 12 (Remarks), enter accrued expenditures (quarter) and obligations (year-to-date) separately according to staff costs and NPS costs. Expenditures/obligations must reflect charges against only current year funds. Charges against prior year funds (including carry-over funds) are to be reflected on the separate ETA 9130 for that year.

• UI National Activities. (Separate for each year)

• TAA Benefits. (Separate for each year)

• ATAA Benefits. (Separate for each year)

• DUA Administration and Benefits. (Separate ETA 9130s for each disaster number and by Administration and Benefits)

C. SF 270, Request for Advance or Reimbursement. This report is a government-wide standard form prescribed for use by OMB Circular No. A-102, and by Department of Labor Regulations at 29 CFR 97.41(d). This is a voluntary report which states may use to request above-base advances.

IV. DEFINITIONS

A. Accrued Expenditures. This term is defined in 29 CFR 97.3 as "charges incurred by the grantee during a given period requiring the provision of funds for (1) goods and other tangible property received; (2) services performed by employees, contractors, subgrantees, subcontractors, and other payees; and (3) other amounts becoming owed under programs for which no current services or performance is required, such as annuities, insurance claims, and other benefit payments."

The term "Outlays" on the ETA 9130 has the same meaning as accrued expenditures under the accrual basis of reporting.

B. Funding Period. Non-automation funds must be obligated by December 31 of the following fiscal year, and liquidated within 90 days thereafter. ETA may extend the liquidation date upon written request. Automation funds must be obligated by the end of the 3^rd fiscal year, and liquidated within 90 days thereafter. ETA may extend the liquidation date on written request. The annual call memo will specify the specific funding period for the plan year and any special provisions contained in the appropriation language.

C. Obligations. Obligations are the sum of outlays and unliquidated obligations (resources on order).

Guidelines for establishing obligations in the UI program are listed below:

1. Obligations must be intended to meet a bona fide need of the funding period in which the need arises, or to replace stock used in the funding period. To comply with this guideline, purchase orders, requisitions, and contracts recorded as obligations must be firm, complete, and must request prompt delivery of materials or services. Do not include in the amounts reported as obligations administrative reservations, such as reservations for contemplated procurements in the form of requisitions within the state, invitations for bids, or any other similar arrangements.

2. Where an obligation is definite but the precise amount is not known, it may be estimated.

3. States must obligate allocations for regular operations of the UI program -- whether base or above-base funded -- as specified in paragraph IV.B. above.

4. Generally, obligations should be supported by a valid purchase order or other binding agreement, in writing, between the parties, for goods to be delivered or services to be performed. Purchase orders are to be included only to the extent that their issuance, together with previous or subsequent action by the other party, constitutes an offer and acceptance that has become a binding agreement. Such orders (and requisitions) may not be regarded as issued as long as they remain within the control of the issuing agency.

5. If the state issues purchase orders directly to a vendor, obligations must be recorded and reported on the basis of the purchase orders.

6. For purchases placed with another state agency which are required by state law or regulation, an exception is made to the requirement for supporting a transaction by a valid purchase order or binding agreement in writing. Where the state law or regulations mandatorily require the state agency to procure the specific materials, requisitions of state agencies may be treated as purchase orders, and obligations must be recorded and reported on the basis of the requisitions issued to the central procurement agency.

7. When procurement from a central procurement agency is optional, obligations may be recorded on the basis of requisitions issued by the state, provided (a) there is documentary evidence (such as a store stock catalog) that the items are normally stocked, and (b) the requisition is for a bona fide need of the funding period in which the need arises, or it is for replacement of stock used in the funding year. When items or services are ordered through a central procurement agency with delivery to the state direct from the vendor, obligations must be recorded on the basis of purchase orders issued by the central agency.

D. Unliquidated Obligations. This term on the ETA 9130, for reports prepared on an accrued expenditure basis, is defined in 29 CFR 97.3 as “the amount of obligations incurred by the grantee for which an outlay has not been recorded.” The term "unliquidated obligations” has the same meaning as "resources on order” had in the past. States must report valid unliquidated obligations on the ETA 9130 for the UI program.

States should periodically review unliquidated obligation amounts to determine their validity. Obligations must not be carried on the state agency's books unless the agency is reasonably certain that payment of the obligation will be required at a later date.

Federal regulations at 29 CFR 97.23(b) require that states must liquidate all obligations incurred under a grant not later than 90 days after the end of the funding period (see paragraph IV.B. above) unless extended by the Federal agency at the request of the grantee. Thus, states must obtain written approval from ETA to retain unliquidated non-automation acquisition obligations beyond 6 months after the end of the fiscal year or automation acquisition obligations beyond 2 years and 90 days after the end of the fiscal year. State requests for extension of the deadline for expend­ing funds must be in writing and executed prior to the regular deadlines for fund expenditure.

E. Automation Acquisition. The term “automation acquisition” is defined as the costs of goods and services directly related to the automation of UI operations. Automation goods consist of computers and their peripheral and auxiliary equipment and associated software. Automation data processing services are those services necessary to support the acquisition of those ADP goods. The term does not include maintenance and other costs relating to current operations and services.

Given the fast pace of technological developments, the list of products covered by this definition will change with time; therefore, no definitive list can be provided. The following list is illustrative of what is meant by the definition, but is not all-inclusive:

1. Hardware. Central processing units; front-end processing units; minicomputers; microcomputers and related peripheral equipment, such as data storage devices, document scanners, data entry equipment, terminal controllers, and data terminal equipment; computer-based word processing systems other than memory typewriters; equipment and systems for computer networks; equipment and systems for communications, which includes voice, radio, images, optical, data, and video; related items such as switchboards, PBX units, multiplexers, FAX, modems, digital computer service units, channel service units, channel extenders, protocol converters, VSAT, satellite, encryption and voice response units.

2. Software. Programs and routines used to employ and control the capabilities of automated and communication systems such as operating systems, compilers, assemblers, utilities, library routines, maintenance routines, applications, converters, conversion routines, knowledge-based systems, artificial intelligence systems, decision support systems, executive information systems, security and encryption, and networking programs.

3. Services. One-time costs for staff, service bureaus, or contract services directly related to the initial acquisition of automation systems, including those relating to feasibility studies, systems design, application software security and system development; and the transportation, installation, training, and maintenance of such items which directly relate to the initial acquisition.

F. PMS Document Numbers. Because some states have moved to accounting systems other than the Cost Accounting System (CAS), ETA established uniform accounting codes for use by all states in reporting back to ETA. While the uniform codes are based on the current CAS fund ledger code structure, non-CAS users may establish whatever account/code classification system they wish to use in their accounting systems. However, the ETA 9130s submitted to ETA must contain the PMS Document Number(s) issued under the UI Annual Funding Agreement, and they must be used in identifying cash drawdowns by program through the Department of Health and Human Service’s Payment Management System.

7. Time Distribution Definitions. The definitions of the UI program categories contained in the UI base allocations and Quarterly Financial Report (UI-3) are a combination of UI functions previously defined in ET Handbook No. 362 (State Accounting Manual), Volume II, Chapter IV. The following reflects the program categories used on the UI-3 worksheet and the CAS time distribution functions and codes:

UI-3

Associated Time Distribution Functional Activity Codes (under Project

Code 210 unless otherwise stated)

Claims Activities

Initial Claims (200)

Weeks Claimed (Includes ERP) (200)

Nonmonetary Determinations (230)

Multi-claimant Services (238)

Appeals (240)

Employer Activities

Wage Records (260)

Tax (Includes Tax Travel) (300)

UI PERFORMS

UI Performs (Function 461 and/or Project Code 213)

UI Support/AS&T

Benefits/Appeals Travel (235)

Benefit Payment Control (270)

UI Support (400)

Internal Security (459)

Interstate Activities (460)

AS&T (100, 120, 150)

TAA and ATAA Benefit Administration (Project Code 219)

Use only Claims Activities codes 200, 230, 238, and 240 (see above) under

Project Code 219)

Other

Reserved for special categories