Revised fiscal and reporting instructions for 2002 temporary extended benefits

U.S. Department of Labor
Employment and Training Administration Washington, D.C. 20210 Classification: OWS Correspondence symbol: OIS/DFAS Date: April 17, 2002

ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 17-02, Change 1 TO: ALL STATE WORKFORCE AGENCIES FROM: GRACE A. KILBANE, Administrator, Office of Workforce Security SUBJECT: Temporary Extended Unemployment Compensation Act of 2002 RESCISSIONS: None EXPIRATION DATE: Continuing

1. Purpose. To provide State Workforce Agencies (SWAs) with revised fiscal and reporting instructions for the TEUC program.

2. References. The Temporary Extended Unemployment Compensation Act of 2002, Public Law 107-147; ET Handbook No. 401; ET Handbook No. 410; UIPL 17-02.

3. Summary of Changes. This directive supersedes the fiscal and reporting instructions in Sections V and VI of the attachment to Unemployment Insurance Program Letter (UIPL) No. 17-02. The following is a summary of the changes to the original document.

   a. SWAs are required to submit a separate financial status report (Standard Form 269) for administrative grants and costs associated with the Temporary Extended Unemployment Compensation (TEUC) program.

   b. Instructions for drawing down funds for TEUC benefits and reporting on the ETA 2112 have been clarified.

   c. Instructions for time distribution and reporting on the UI-3 report have been expanded.

4. Action Required. State Administrators are requested to ensure that:

   a. Appropriate staff receive a copy of this directive; and

   b. The fiscal and reporting instructions, as revised, are followed.

5. Inquiries. Direct questions to the appropriate Regional Office.

6. Attachment. Revised page for the Table of Contents and Sections V and VI to the Implementing and Operating Instructions for the TEUC Program.

Attachment: revised Table of Contents and Sections V and VI

Official attachment: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2002/UIPL17-02Change1_Attach.pdf

Table of Contents

                                                       Page

6.   Fraud and Overpayment............................ IV-4
     a. Fraudulent Claiming of TEUC.................. IV-4
     b. Recovery of Overpayments..................... IV-5

Section V - Fiscal Instructions

1. Payments to States............................... V-1
    a. Requesting TEUC Benefit Funds................ V-1
    b. TEUC Administrative Funds.................... V-1
2. TEUC Fiscal Reporting Instructions
    a. Obligational Authority....................... V-2
    b. Administrative Fund Accounting............... V-2
    c. Time Distribution............................ V-2
    d. Accounting for TEUC Payments (Benefits)...... V-2
3. Drawdown Instructions for TEUC................... V-3
    a. Requesting Refunds........................... V-3

Section VI - Reporting Instructions

1. General.......................................... VI-1
2. Data Items to be Reported........................ VI-1
    a. ETA 207...................................... VI-1
    b. ETA 218...................................... VI-1
    c. ETA 227...................................... VI-1
    d. ETA 5130..................................... VI-1
    e. ETA 5159..................................... VI-1
    f. ETA 2112..................................... VI-2
    g. ETA 539...................................... VI-3
    h. UI-3 Worksheet............................... VI-4
3. Notification of a Regular EB Trigger Under EUCA.. VI-4
4. OMB Approval..................................... VI-4

                  Section V – Fiscal Instructions

1. Payment to States. Under Section 204 of the Act each
state that has entered into an agreement to pay TEUC will be
paid an amount equal to 100 percent of the amount of TEUC
paid to individuals by the state under the agreement and in
full accordance with the Act and these instructions.

     a. Requesting TEUC Benefit Funds. States will request
funds from the Extended Unemployment Compensation Account
(EUCA) to pay all TEUC benefits attributable to all claim
types (UI, UCFE, and UCX). Drawdown procedures are not
changed --- all requests go through the Automated Standard
Application for Payments (ASAP) system. Drawdown requests
must adhere to the funding mechanism stipulated in the
Treasury-State Agreement executed under the Cash Management
Improvement Act of 1990. Requests will be funded in the
same manner as all ASAP transactions elected by the states
(FEDWIRE or ACH to the state benefit payment account). See
paragraph 3 of this section for specific instructions.

Benefits paid to former employees of state and local
governments, “501(c)(3)” nonprofit organizations and
federally recognized Indian tribes are funded from U.S.
Treasury general revenues through the EUCA.   This does not
affect the process for requesting funds, but does affect the
reporting of those benefits on the ETA 2112. States are to
report all TEUC payments, including reimbursable, UCFE/X on
line 39, column F. (Note that it does not matter whether
these employers have elected reimbursement status.) See the
reporting instructions in Section VI for details.

     b. TEUC Administrative Funds. Section 205(c) of the
Act appropriated funds from the Employment Security
Administration Account (ESAA) in the Unemployment Trust
Fund, to pay costs related to the administration of the TEUC
agreement. Section 205(c) also authorizes the Secretary to
determine each state’s share of the amount appropriated
according to the factors described in section 302(a) of the
Social Security Act (42 U.S.C. 501(a)). States will receive
TEUC administrative funds through the contingency
entitlement process. (See Section VI, Paragraph 3.h.)

2.    TEUC Reporting Instructions.

     a. Obligational Authority. The Grant Officer will
assign a separate line on the UI program notices of
obligational authority for TEUC grant funds, and a separate
sub-account for TEUC will be set up in the Payment
Management System for SWAs to draw down TEUC administrative
funds.

     b. Administrative Fund Accounting. Because of the
separate appropriation for TEUC administrative funds and the
availability of these funds until expended, SWAs must track
and report TEUC administrative expenditures and obligations
separately from the regular UI program. Therefore, SWAs
should establish a separate fund ledger and must submit a
separate SF 269 for the TEUC program. SWAs should include
any TEUC administrative expenditures and obligations
incurred in March 2002 in their June 30, 2002, TEUC SF 269
report.

     c. Time Distribution. To ensure that regular UI and
TEUC costs are tracked separately, SWAs should charge time
used for all TEUC activities to the appropriate UI
functional activity codes (as outlined in Appendix E to ET
Handbook No. 410) under the separate TEUC fund ledger;
however, SWAs should combine regular and TEUC staff year
usage data in Section A of the UI-3 worksheet.

       d.   Accounting for TEUC Payments (Benefits).

           (1) TEUC advances to the states’ UTF accounts,
and disbursements for TEUC benefit payments will be reported
on the monthly ETA 2112. Do not use a separate form for
this report. (See Section VI, Reporting Instructions.)
Accurate reporting of advances, reimbursements and payments
is important due to the monthly reconciliation of balances
with OWS records; balances are subject to constant
congressional and public inquiries.

          (2) Since TEUC paid to UCFE and UCX will be
funded out of General Revenues, the Federal Employees
Compensation (FEC) Account will not be used to pay TEUC

benefits. Therefore, federal agencies will not be required
to reimburse the Unemployment Trust Fund for TEUC paid to
federal employees. The ETA 191 report and UCFE/UCX detailed
claimant data provided by states to Federal agencies must
exclude TEUC.

3. Drawdown Instructions for TEUC. Beginning on March 15,
2002, the Automated Standard Application for Payments System
(ASAP) will have new lines for making drawdowns to pay TEUC
benefits. The lines are clearly labeled TEUC and may be
broken down by type of payment - for former employees of
contributory employers, UCFE/X, or reimbursable and special
contributory employers. The Bureau of Public Debt, managers
of the UTF, will immediately inform state users of the ASAP
of any modifications to screens or drawdown instructions.

     a. Processing Refunds. There are two scenarios for
returning funds to these program lines. The most likely
scenario will be when the state has funds in their state UI
account and they need to return those funds. This should be
completed as a negative amount posted to the appropriate
line in ASAP. To accomplish this, the total draw for the
day in ASAP must be greater than the negative balance posted
to the appropriate line.

The second scenario is when a state actually has the funds
in its federal UI account that are required to be returned
to the appropriate program line. This should be
accomplished by the state processing a book transfer
transaction that accomplishes a transfer from its UI account
to the appropriate program under the EUCA account.

Section VI - Reporting Instructions

1. General. The TEUC program reports, ETA 207, ETA 218, ETA
227, ETA 5130 and ETA 5159 should be submitted electronically
by utilizing separate TEUC entry screens that are available
through the UI Required Reports electronic reporting system.
These reports will mirror the reports required for the regular
Federal-State Extended Benefits program. TEUC activity should
also be reported on the ETA 2112, ETA 539 and UI-3 as
specified below in section 2. Unless otherwise noted,
definitions of items will follow definitions in the regular
program as specified in ETA Handbook 401, 3rd Edition. Due
dates will be the same as the regular versions of reports.

Reporting will begin with the first reporting period in which
the effective date of the TEUC program falls. Reporting for
all Reports except the ETA 2112 will continue for twelve full
months or four full quarters after the last payable week of the TEUC
program. For those reporting periods in this post-TEUC timeframe, only reports, which have non-zero data, need be
submitted. Reporting on the ETA 2112 should continue for as
long as there is activity.

2.   Data Items to be Reported.

     a. ETA 207. Report column 1, Total Determinations and
Redeterminations, for lines 101 through 106. Report also lines
201 and 202, columns 7 through 10; and lines 301 and 302,
columns 11, 12, 14, and 17.

     b. ETA 218.    Report line 100, columns 1 through 3.

     c. ETA 227. Report Section A, Overpayments Established,
lines 101 and 103, for columns 2 through 5. Also report all
of Section C, Recovery/Reconciliation, excluding lines 303-
307, columns 11-14.

     d. ETA 5130.    Report all data elements.

     e. ETA 5159. For Section A Claims Activities, report
initial claims information for columns 2 through 5 and column

7 for lines 101 through 103. Report eligibility reviews and
continued weeks claimed activity for columns 8 through 12 for
lines 201 through 203. The claims information needed for
column 11 for lines 201 through 203 will be identified as
entitlement type “code 2" (Federal Benefit Extension) in field
number 28 on the Interstate Liable-Agent Data Transactions
(LADT). For Section B, Payment Activities, report columns 14,
15, 17, 18, and 19 for lines 301 through 302 and columns 21
and columns 24 through 28 for line 303.

          (1) First Payments. Report the first payment under
TEUC program. Do not report the first payment after TEUC-X
augmentation as a first payment.

          (2) Final Payments. A final payment is to be
reported when a payment is issued that exhausts the benefit
entitlement in the individual’s TEUC account. When the state
is in an EB period or a TEUC-X period, only payments that
exhaust a TEUC account that has been augmented with TEUC-X is
reported as a final payment.

     f. ETA 2112. Regular activity should be reported in the
aggregate on the electronic regular ETA 2112 report as usual.
 Information reflecting TEUC activity should be reported as
follows:

          Line 15. Reed Act Distributions. Include all Reed
Act distributions to the state account in the UTF.

          Line 16. Intra-Account Transfer. Include in line
16F the amount of TEUC funds transferred from the UTF to the
state benefit payment account.

          Line 23. Federal Emergency Compensation. Enter in
columns C and E the amount of Federal funds received as
advances or reimbursement for TEUC.

          Lines 33, 34, 35. Enter total benefits paid,
attributable to state and local governments, “501(c)(3)”
nonprofits, and Indian tribes, as appropriate, on the
appropriate line for the type of employer, excluding TEUC
benefits.

          Line 36. FECA Net Federal Benefits - UCX. Enter in
columns C and F the net Federal portion of unemployment
compensation paid to former members of the armed services,
excluding TEUC. The total payments should be adjusted for
refunds deposited during the month, credits and recharges, and
cancellations and reissuances.

          Line 39. Federal Emergency Compensation. Enter in
columns C and F the net amount for which the federal
government is liable for TEUC, including UCFE and UCX and
federal emergency programs. Include residual activity (e.g.,
overpayment recoveries) from expired emergency programs (e.g.,
EUC, FSC, FSB). Break out all disbursements by program in the
“Comments” section as follows:

              (1) Regular - TEUC benefits paid to former
employees of contributory employers.

              (2) Reimbursable, Federal, and Special
Contributory - TEUC benefits paid to former employees of the
federal government (UCFE and UCX), state and local government
(contributory or non contributory) Section 501(c)(3) employers
(contributory or non contributory employers to which Section
3309(a)(1) of the Internal Revenue Code applies), and Indian
Tribes (contributory or non contributory).

              (3) Expired Program Transactions – any residual
activity for expired federal benefit extension programs, e.g.,
recoveries of EUC overpayments.

          Line 41. Reed Act Withdrawals. Enter all Reed Act
funds withdrawn from the state account in the UTF.

          Line 43. FECA Net Benefit Payments - UCFE. Enter
in columns C and F the net Federal portion of unemployment
compensation paid to former federal civilian (including
postal) employees, excluding TEUC. The total payments should
be adjusted for refunds deposited during the month, credits
and recharges, and cancellations and reissuances.

          Line 50. Withholding. States are to report gross
benefits in column F regardless whether amounts of withholding

transferred to the IRS goes through the state benefit payment
account. See ETA Handbook 401, 3rd Edition, for specific
instructions. Line 16 F must equal Line 44E.

     g. ETA 539. Total weeks claimed for State, UCFE, and UCX
under the TEUC program for the report period will be reported
in the comments section and labeled as “TEUC" followed by the
number. For example: “TEUC=239". (The agent weeks claimed
information needed for this report will be obtained from the
LADT identified in field 28 as “code 2", Federal Benefit
Extension.)

     h. UI-3 Worksheet. Report combined staff year figures
for the UI regular and TEUC programs in Section A of the
regular UI-3 report. TEUC claims workload and staff years
will be shown on the lines for third tier programs in Section
B of the regular UI-3 report.

3. Notification of a TEUC-X Trigger. States with a TEUC
agreement with the Secretary may already have triggered or may
trigger a TEUC-X period under the requirements of Section
203(c) of the Act. A letter from the governor or appropriate
state official declaring that the state has triggered either
on or off the TEUC-X period based on the 4 percent IUR is
required in the same manner as for an EB period under EUCA.

States with a 4 percent IUR as of enactment of the TEUC Act
should immediately declare a TEUC-X period indicating a
beginning date in accordance with the requirements of 20 CFR
615.12. Send letter to:

                          Ms. Grace Kilbane
                          Office of Workforce Security
                          200 Constitution Avenue, N.W.
                          Room S-4231
                          Washington, D.C. 20210

Any paper reports should be faxed to 202-693-3229 instead of
mailing. The cover sheet should indicate delivery to UI
Required Reports.

4. OMB Approval. These instructions have been submitted to
the Office of Management and Budget (OMB), but have not yet

been approved. Therefore, they should be considered draft
instructions of proposed data collections. ETA will notify
states upon OMB approval and communicate any changes deemed
necessary during the OMB approval process.