ACORN funding restrictions under 2010 appropriations

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL08-09Ch1acc.pdf

                                                          CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION
             ADVISORY SYSTEM                              CORRESPONDENCE SYMBOL
       U.S. DEPARTMENT OF LABOR                           OGM
            Washington, D.C. 20210                        DATE
                                                          November 17, 2010

ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 8-09,
          Change 1

TO:           ALL STATE WORKFORCE AGENCIES
              ALL STATE WORKFORCE LIAISONS
              STATE WORKFORCE ADMINISTRATORS
              STATE AND LOCAL WORKFORCE INVESTMENT BOARDS
              ONE-STOP CAREER CENTER SYSTEM LEADS
              ALL DIRECT ETA GRANT AND CONTRACT RECIPIENTS

FROM:         JANE OATES /s/
              Assistant Secretary

SUBJECT:      Guidance on Recent Appropriations Act Provisions Regarding the
              Association of Community Organizations for Reform Now

1. Purpose. To provide guidance on compliance with the requirements of recent
appropriations act provisions, including Section 511, Division E of the Consolidated
Appropriations Act, 2010, Public Law No. 111-117, regarding the Association of
Community Organizations for Reform Now (ACORN).

2. References.
Section 511, Division E of the Consolidated Appropriations Act, 2010, Public Law No.
111-117 (Fiscal Year (FY) 2010 Consolidated Appropriations Act); Section 163 of the
Continuing Appropriations Resolution, 2010, Division B of Public Law No. 111-68 (FY
2010 Continuing Resolution); Sections 101 and 103 of the Continuing Appropriations
Act, 2011, Public Law No. 111-242 (FY 2011 Continuing Appropriation); Training and
Employment Guidance Letter (TEGL) No. 8-09.

3. Background. In TEGL 8-09, the Department issued guidance regarding section 163
of Division B of the FY 2010 Continuing Resolution, which prohibited the Federal
government from providing funding to ACORN or any of its affiliates, subsidiaries, or
allied organizations from either the FY 2010 Continuing Resolution or any prior
appropriation. The FY 2010 Continuing Resolution expired when the FY 2010
Consolidated Appropriations Act, which included the Department of Labor’s 2010
appropriation, was enacted on December 16, 2009.

RESCISSIONS                                               EXPIRATION DATE
None                                                      Continuing
Section 511, Division E of the FY 2010 Consolidated Appropriations Act prohibits the
distribution of funds from the FY 2010 Consolidated Appropriations Act to ACORN or
its subsidiaries. ETA notified grantees and contractors by letter about the ACORN
prohibition contained in the FY 2010 Consolidated Appropriations Act. This TEGL
Change is to update TEGL 8-09 in light of the expiration of the FY 2010 Continuing
Resolution and the enactment of the FY 2010 Consolidated Appropriations Act. The
ACORN restrictions provided by the FY 2010 Consolidated Appropriations Act, and
described in this TEGL, apply to funds made available by the FY 2011 Continuing
Appropriation, which was passed on September 30, 2010.

4. Guidance. Section 511, Division E of the FY 2010 Consolidated Appropriations Act
states:

       None of the funds made available in this division or any other division in
       this Act may be distributed to the Association of Community
       Organizations for Reform Now (ACORN) or its subsidiaries.

The FY 2011 Continuing Appropriation provides that appropriations made under
that act are available under the conditions provided by the FY 2010 Consolidated
Appropriations Act.

5. Action Requested. All recipients and sub-recipients of FY 2010 Consolidated
Appropriations Act funds and FY 2011 Continuing Appropriation funds made available
by the Employment and Training Administration (ETA) through grant awards, contracts,
cooperative agreements, agreements, memoranda of understanding, or any other method
of procurement, hereinafter also referred to as “direct or indirect recipient(s) of FY 2010
or FY 2011 funds from ETA,” must immediately commence all necessary and
appropriate steps to comply with Section 511, Division E of the FY 2010 Consolidated
Appropriations Act and the FY 2011 Continuing Appropriation. This includes the
following:

   a. No Future Obligation of Funds. No direct or indirect recipient of FY 2010 or FY
      2011 funds from ETA may obligate Federal funds from the FY 2010 Consolidated
      Appropriations Act or the FY 2011 Continuing Appropriation to ACORN or its
      subsidiaries. To the extent that a direct or indirect recipient of FY 2010 or 2011
      funds from ETA has determined that funds should be obligated from the FY 2010
      Consolidated Appropriations Act or the FY 2011 Continuing Appropriation to
      ACORN or its subsidiaries, but has not yet entered into any agreement to provide
      such funds to ACORN or any of its subsidiaries, the direct or indirect recipient of
      FY 2010 or 2011 funds from ETA may not enter into any such agreement to do
      so.

   b. Suspension of grant and contractual payments. Direct or indirect recipients of FY
      2010 or FY 2011 funds from ETA who have existing grant agreements, sub-grant
      agreements, contracts, sub-contracts, cooperative agreements, agreements,



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       memoranda of understanding, or any other kind of procurement or funding
       instrument with ACORN or its subsidiaries must: 1) where permissible,
       immediately suspend performance of any obligations under such agreement,
       including suspension of the payment of Federal funds; and 2) consult promptly
       with legal counsel and ETA concerning the legal considerations that bear on the
       performance of such obligations under the procurement or funding instrument.
       Direct or indirect recipients of FY 2010 or FY 2011 funds from ETA that have
       existing FY 2011 Continuing Appropriation or FY 2010 Consolidated
       Appropriations Act-funded grant agreements, sub-grant agreements, contracts,
       sub-contracts, cooperative agreements, agreements, memoranda of understanding,
       or any other kind of procurement or funding instruments with ACORN or its
       subsidiaries must also immediately provide their Federal Project Officer with a
       written report describing: 1) the nature and purpose of the procurement or
       funding instrument; 2) the date upon which it was executed and the originally
       planned duration; 3) the dollar value of the procurement or funding instrument
       and the amount which had been disbursed; 4) a description of the statement of
       work and/or deliverable; 5) the date upon which the procurement or funding
       instrument was suspended or terminated pursuant to this guidance; and 6) a
       description of any other steps taken to comply with the FY 2010 Consolidated
       Appropriations Act, Division E, Section 511 prohibition.

   c. Direct or indirect recipients of FY 2010 or FY 2011 funds from ETA shall require
      all of their sub-recipients and sub-grantees to comply with the requirements
      described in this guidance, shall immediately provide guidance to their sub-
      recipients and sub-grantees on compliance with these requirements, and shall
      immediately modify sub-recipient and sub-grantee agreements to incorporate the
      requirements described in this guidance.

6. Inquiries. Direct questions to the Grant or Contracting Officer designated in the grant
or contract agreement.




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