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FY 2012 supplemental UI integrity funding

Summary ETA invited state unemployment agencies to apply for FY 2012 supplemental funding for improper payment prevention, performance improvements, technology modernization and reemployment assessments. It set core integrity activities as a condition for several funding categories and explained application and project rules. Proposals were due July 6, 2012; the PDF expired in 2016 and ETA now lists it as Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
UIPL No. 18-12
Date issued
May 11, 2012
Status
Withdrawn
ETA’s advisory listing marks this FY 2012 funding letter Canceled as of 2026-10-24. Its PDF lists May 11, 2016 as the expiration date and a July 6, 2012 application deadline.
Status last verified October 24, 2026

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This document has been withdrawn. Ezel checks what federal law requires today, under current federal labor law, and answers your situation with citations.

This document has been withdrawn
ETA’s advisory listing marks this FY 2012 funding letter Canceled as of 2026-10-24. Its PDF lists May 11, 2016 as the expiration date and a July 6, 2012 application deadline. It no longer reflects the agency's current position. Treat this page as historical context, not current guidance, and verify current law before relying on anything here.
About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
UIPL 18-12 (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL18-12acc.pdf)

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                   Unemployment Insurance
               ADVISORY SYSTEM                              CORRESPONDENCE SYMBOL
                                                            OUI
          U.S. DEPARTMENT OF LABOR
                                                            DATE
             Washington, D.C. 20210                         May 11, 2012

ADVISORY:          UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 18-12

TO:                STATE WORKFORCE AGENCIES

FROM:              JANE OATES /s/
                   Assistant Secretary

SUBJECT:           Unemployment Insurance (UI) Supplemental Funding Opportunity for
                   Program Integrity, Performance, and System Improvements

1. Purpose. To notify State Workforce Agencies of the availability of Fiscal Year (FY) 2012
   funds for activities that support the integrity of the UI program for the prevention, detection,
   and recovery of improper UI benefit payments; improve state performance; address outdated
   Information Technology (IT) system infrastructures necessary to improve UI program
   integrity; and enable states to expand or implement Reemployment and Eligibility
   Assessment (REA) programs.

2. References.
   • Improper Payment Information Act of 2002 (IPIA; 31 U.S.C. 3321 note);
   • Improper Payment Elimination and Recovery Act of 2010 (IPERA; 31 U.S.C. 3301
      note);
   • Executive Order (E.O.) 13520, Reducing Improper Payments (November 20, 2009);
   • Unemployment Insurance Program Letter (UIPL) No. 28-06, Unemployment Insurance
      (UI) Fiscal Year (FY) 2006 Supplemental Funding Opportunities;
   • UIPL No. 2-09, Changes 1 and 2, Recovery of Unemployment Compensation Debts Due
      to Fraud from Federal Income Tax Refunds;
   • UIPL No. 19-11, National Effort to Reduce Improper Payments in the Unemployment
      Insurance (UI) Program;
   • UIPL No. 26-11, Unemployment Insurance (UI) Supplemental Funding Opportunity for
      Program Integrity and Performance and System Improvements;
   • UIPL No. 28-11, Unemployment Insurance (UI) State Integrity Task Forces and
      Strategic Plans;
   • UIPL No 10-12, Fiscal Year (FY) 2012 Unemployment Insurance (UI) Reemployment
      and Eligibility Assessment (REA) Grants;
   • UIPL No. 11-12, Unemployment Insurance (UI) Claimant and Employer Messaging
      Toolkit Availability and State Implementation; and
   • UIPL No. 12-12, Guidelines for Fiscal Year (FY) 2012 State Agency Unemployment
      Insurance (UI) Resource Allocations and Above-Base Funding.

 RESCISSIONS                                               EXPIRATION DATE
   None                                                    May 11, 2016

3. Background. On November 20, 2009, President Obama signed E.O. 13520, Reducing
   Improper Payments. The Executive Order emphasized the need to eliminate waste, fraud,
   and abuse in federally administered programs while protecting access to these programs by
   their intended beneficiaries. Subsequently, the IPIA, as amended by IPERA, required
   Federal agencies to review their programs and program activities annually, identify programs
   and areas that may be susceptible to significant overpayments, and develop and implement
   corrective action plans for any “high-risk” programs. Under the IPIA, an agency which
   reports an improper payment rate above 10 percent for a program it administers will be
   determined to be out of compliance, which will trigger oversight by Congress, the Office of
   Management and Budget (OMB), and the U.S. Department of Labor’s Office of the Inspector
   General. The UI program is currently out of compliance. The UI Benefit Accuracy
   Measurement (BAM) program, which provides the basis for assessing the accuracy of UI
   payments, estimated the UI national improper payment rate to be 12.0 percent for the 2011
   reporting period (11.35 percent overpayment rate plus a 0.65 percent underpayment rate).
   This translates to approximately $15 billion in improper payments nationally.

   On June 10, 2011, the Department of Labor (Department) issued UIPL No. 19-11, National
   Effort to Reduce Improper Payments in the UI Program, to stress that UI integrity remains a
   top priority and to provide a strategic plan to aggressively target UI overpayment prevention
   and detection. UIPL No. 19-11 also requested that all states participate in a Federal-state
   collaboration to reduce UI improper payments by implementing new strategies aimed at
   addressing root causes of overpayments to significantly reduce the UI improper payment
   rate. Later, UIPL No. 26-11 announced a supplemental funding opportunity to help the states
   develop their own state-specific strategies to reduce the improper payment rate. As a
   condition of eligibility, that funding opportunity required states to implement eight Core
   Integrity Strategies to qualify for additional Incentive Integrity Activity funding. The
   Department ultimately funded Supplemental Budget Request (SBR) grants to 40 states, the
   District of Columbia, and Puerto Rico for UI program integrity and technology infrastructure
   systems.

   The Department also remains committed to supporting states in updating their IT
   infrastructures. The National Association of State Workforce Agencies’ (NASWA)
   Information Technology Support Center reported that the average age of the states’ UI IT
   infrastructures is 23 years, with many systems more than 30 years old. States that have
   recently modernized their systems have found that the cost to design and develop a new
   system is, on average, about $40 to $50 million. The Department’s budget estimates show
   that the cost of funding individual customized state systems, even if costs were spread over
   multiple years, is unaffordable in the current budget environment and that states must seek
   collaborative solutions to address the challenge. Therefore, this solicitation employs a
   consortium strategy to fund system modernization and large technology projects.

   Finally, the Department supports states in their efforts to reduce improper payments and help
   claimants return to work more quickly through Reemployment and Eligibility Assessments
   (REAs). REAs have been proven effective at reducing UI improper payments and improving
   employment outcomes for claimants who participate. This solicitation provides an
   opportunity for states to expand their current REA operations or to implement a new REA
   program if the state does not currently have one.

4. Goals. The Department strongly encourages states to continue efforts to aggressively target
   UI overpayment prevention and detection, and to develop state-specific strategies to reduce
   the UI improper payment rate. The funding opportunities explained below are designed to
   build from the supplemental funding provided in FY 2011 to assist states in developing their
   own state specific strategies to prevent, detect, and recover improper payments. The goals of
   the funding for this solicitation are to:

       Accelerate significant state actions to reduce improper payment rates;
       Provide states the flexibility to design state-specific strategies, modernize their UI
       benefits and/or UI tax systems, and implement other integrity-related tools and staff
       training activities; and
       Provide states the ability to implement or expand their existing REA programs for the
       regular state UI program.

5. Structure of Funding Opportunity. Supplemental funds are available for: 1) integrity
   activities (required core activities and optional incentive activities); and 2) incentive funding
   to initiate and/or accelerate significant actions to reduce improper payments and improve
   overall state program performance. States must have implemented, or must agree to
   implement, the entire set of Core Integrity Activities by the specified dates, to qualify for any
   of the funding discussed in this UIPL.

   Section 6 of this UIPL identifies and describes the funding available for the Core Integrity
   Activities and the Incentive Integrity Activities. The Department believes all states should
   implement the Core Integrity Activities as part of their individual strategic plans to reduce
   improper payments attributed to the key root causes of overpayments. These include
   improper payments resulting from benefit year earnings, separations, and employment
   service registration. Included in Section 6 is a chart showing the maximum funding amounts
   available for each Core Integrity Activity. Incentive funds are offered to states to implement
   an additional set of integrity activities, in an amount of $1.85 to $2.2 million per state,
   contingent upon the state having already implemented, or agreeing to implement, all Core
   Integrity Activities by the dates specified in this UIPL.

   Section 7 of this UIPL identifies and describes consortium projects that may be funded. As
   with the incentive activities, a state may receive these funds only if it has already
   implemented, or agrees to implement all the Core Integrity Activities by the dates specified
   below.

6. Core Integrity Activities and Incentive Integrity Activities.

   Core Integrity Activities. The following are the Core Integrity Activities that must have been
   or that must be undertaken for a state to receive funding through this solicitation:

       Continued operation of a Cross-Functional Integrity Task Force (see UIPL No. 28-11);
       Engaging in a business process analysis to identify areas of weakness and improve
       program performance if the state’s improper payment rate is above ten percent;

   Activities listed in the Recommended Operating Procedures (ROP) for conducting cross
   matching with the National Directory of New Hires (NDNH) and the State Directory of
   New Hires (SDNH) (see UIPL No. 19-11);
   Use of the State Information Data Exchange System (SIDES) and SIDES Messaging;
   Claimant/Employer messaging about UI program requirements;
   Employment Service (ES) Registration as required under state UI law if the state’s ES
   Registration error rate is above three percent;
   Implementing the U.S. Department of the Treasury’s Treasury Offset Program (TOP);
   and
   Using an automated State Unemployment Tax Act (SUTA) Dumping Detection System
   (SDDS) to conduct SUTA dumping investigations to detect employers who may be
   engaged in UI tax rate manipulation.

Incentive Integrity Activities. The Incentive Integrity Activities that a state may undertake
are listed below. Only those states that have implemented, or commit to implementing, all of
the Core Integrity Activities listed above will be eligible for these incentive funds. Incentive
Integrity Activity funds may be requested for:

   Hiring merit staff to clear workload backlogs in adjudication, appeals, or benefit payment
   control units;
   Securing contract support to contact claimants when an NDNH or SDNH “hit” indicates
   a claimant may have returned to work;
   Enhanced NDNH Operating Procedures;
   Implementation of state-specific solutions to prevent/reduce improper payments;
   Expanded Reemployment and Eligibility Assessment (REA) program support;
   Payment of the SIDES subscription fees;
   Implementing the SIDES earnings verification;
   Worker Misclassification detection and enforcement activities;
   State-specific UI performance improvement projects designed to help the state achieve
   standards of performance under UI Performs;
   IT Security and Contingency Planning activities;
   Upgrade State SUTA Dumping Detection Systems; and
   Programming an agent state database for Interstate claim files.

Description of Core Integrity Activities Requirements

To qualify for any supplemental funding a state must have already implemented, or must
agree to implement, all of the Core Integrity Activities listed above and must adhere to the
time frames identified for each activity. (States that have implemented all of the Core
Integrity Activities must document this using Attachment C and would thus be able to apply
for incentive funding). Funding caps are identified for each activity, where appropriate.
Each state must meet its commitment(s) in accepting these funds. A state that does not meet
the conditions of the SBR grant(s) will be penalized for failing to meet agreed-upon goals or
performance requirements and the costs associated with these conditions would need to be
repaid.

The Core Integrity Activities include:

   Cross-Functional Task Force. Continuing to convene and enhance the state’s cross-
   functional UI Integrity Task Force to assess the state’s UI integrity functions and make
   recommendations for continuous improvement (see UIPL No. 28-11). States must
   commit to completing a revised integrity strategic plan as part of their annual State
   Quality Service Plan by September 30, 2012. The updated strategic plan must address
   state-specific root causes and strategies. We require continuation of the task force that all
   states established in 2011 to cultivate a sense of ownership for program integrity within
   the entire UI system. We will provide states with up to $80,000 in funding for a
   dedicated senior staff person devoted solely to leading and coordinating the state’s
   improper payment strategies and supporting the state’s task force activities.

   Business Process Analysis. Engage in a business process analysis to identify areas of
   weakness and to set the stage for reengineering processes that will improve program
   integrity performance. The review must be conducted collaboratively by state staff and a
   qualified independent third party contracted by the state, and recommendations from this
   review should be included in the state’s strategic plan to the extent feasible.

      o States with an estimated improper payment rate (overpayment rate +
        underpayment rate) of 10 percent or higher as reported in the calendar year (CY)
        2011 Benefit Accuracy Measurement (BAM) report must conduct an operational
        business process review of their benefit systems to identify areas where changes in
        business processes will lead to a reduction in the improper payment rate and
        overall improvement in program integrity. States that have already planned or
        conducted a business process analysis must provide evidence of this effort as well
        as an assurance that the recommendations from this review will be included in the
        state’s strategic plan to the extent feasible in Attachment C;

      o States with an estimated improper payment rate under 10% may also request
        funding for this review; and

      o States must commit to completing this activity by June 30, 2013 (up to $250,000
        per state is available for this activity).

   National Directory of New Hires Recommended Operating Procedures. Implement
   the ROP (see the attachment to UIPL No. 19-11) in conducting cross-matches with the
   NDNH (and with the SDNH). This includes sending automated notices to claimants and,
   as appropriate, to employers no later than the next business day after a cross-match
   identifies the possibility that a claimant was working during a week claimed and did not
   report earnings. Alerting claimants that the agency has information indicating they may
   have returned to work and that they may be overpaid is a successful practice in reducing
   and preventing overpayments.

       o States that received SBR funding in FY 2011 must provide an attestation that
         NDNH ROPs have been implemented to meet this requirement in Attachment C;
         no additional funding will be provided for this activity; and

   o States that did not receive SBR funding for FY 2011 must commit to completing
     this activity by December 31, 2012 (up to $250,000 per state is available for
     this activity).

State Information Data Exchange System Implementation. Implementing SIDES to
improve the timeliness and quality of separation information needed to adjudicate non-
monetary determinations:

   o States that currently have not implemented SIDES, and have not received any
     supplemental to do so, will be required to fully complete the implementation of
     both the SIDES Web Services and SIDES E-Response components by September
     30, 2013 (up to $500,000 per state to support this implementation);

   o States that received SBR funding previously for SIDES implementation must
     provide evidence of their progress in implementing SIDES and an assurance of
     their ability to complete implementation by the established deadline in
     Attachment C. No additional funding will be provided to these states for this
     activity; and

   o States that have implemented SIDES must begin implementing the SIDES
     marketing tools that were released to the states in March 2012 to encourage
     employers to use the SIDES Web Services or E-Response services (see
     http://info.uisides.org). These states must complete the implementation of at least
     one product from this toolkit no later than December 31, 2012 (up to $100,000
     per state for these messaging and outreach activities).

Claimant/Employer Messaging. Implementing a statewide claimant and employer
messaging campaign designed to: 1) improve claimant awareness of the responsibility to
report any work and earnings when claiming benefits; 2) improve claimant understanding
of work search requirements as a condition of eligibility for benefits; and 3) improve
employer awareness of the responsibility to respond to state requests for separation
information and/or earnings/wage verifications. The state’s campaign must incorporate
at least one product from the Department’s messaging toolkit (see UIPL No. 11-12).

   o States that received SBR funding for FY 2011 must provide evidence of their
     progress in implementing their messaging campaign products and tools in
     Attachment C; and

   o States that did not receive SBR funding for FY 2011 must complete the
     implementation of this campaign no later than December 31, 2012 (up to
     $100,000 per state for these messaging activities).

Employment Service Registration. Implementing technology or other solutions
designed to address improper payments resulting from a claimant’s failure to register
with the state’s ES or job bank in accordance with the state’s UI law.

       o States with CY 2011 BAM employer service registration error rates above 3
         percent must implement these solutions. States may contact the appropriate
         regional office to confirm the state rate for CY 2011;

       o States with CY 2011 BAM employer service registration error rates below 3
         percent may also request funding for this review; and

       o These changes must be completed by April 30, 2013 (up to $100,000 is available
         per state).

    Treasury Offset Program. Implementing the U.S. Department of the Treasury’s TOP to
    recover certain unemployment debts from Federal income tax refunds (see UIPL No. 2-
    09, Changes 1 and 2).

        o States that received incentive SBR funding in FY 2011 for TOP implementation
          must provide evidence of their progress in implementing TOP and an assurance of
          their ability to complete implementation by the established deadline in
          Attachment C; no additional funding will be provided for this activity; and

        o States that did not receive incentive SBR funding in FY 2011 for TOP
          implementation must commit to completing this activity by March 31, 2013 (up
          to $400,000 per state is available for this activity).

    SUTA Dumping Detection/Investigation Systems. Conducting, or providing an
    assurance in Attachment C that they have already begun doing so, SUTA Dumping
    investigations by using an SDDS to detect employers who may be engaged in UI tax rate
    manipulation. ETA provided states funds in FY 2006 to implement systems to detect
    SUTA Dumping and began requiring states to report SUTA Dumping activities in 2011.
    States must be conducting investigations, or commit to conducting SUTA Dumping
    investigations by December 31, 2012 (up to $100,000 per state is available for this
    activity).

Description of Incentive Integrity Activities Requirements

States that commit to implementation of all of the core activities above, and/or have already
implemented the core activities, qualify to request additional incentive funds as described in
this section. These funds may be used for any of the activities listed below. States must
develop a detailed budget for these projects and identify projected outcomes. Activities may
include:

    Merit staffing and securing contract support through September 30, 2014.

        o States may hire merit staff to eliminate workload backlogs in adjudication,
          appeals, Emergency Unemployment Compensation (EUC), Federal Additional
          Compensation (FAC), or benefit payment control units in support of state
          integrity and performance improvement efforts. States must agree that they will

            maintain current levels of staff and resources (maintenance of effort), that the
            additional staff will be limited to eliminating backlogs, and that automation and/or
            streamlined work processes already in place will eliminate the ongoing need for
            this staff;

        o States may secure contract support to contact claimants when an SDNH or NDNH
          “hit” indicates a claimant may have returned to work and provide instructions to
          the claimant on his/her responsibility to report his/her current employment status.
          (NOTE: Contract staff may perform only work that is not inherently
          governmental, because inherently governmental functions may be performed only
          by state merit staff). States must agree that they will maintain current levels of
          staff and resources (maintenance of effort) and that the additional staff will be
          limited to this activity; and

        o Total funding for staffing and support activities will be provided based on
          state size (See Attachment E):

                   Large States:         Up to $700,000
                   Medium States:        Up to $500,000
                   Small States:         Up to $350,000

In addition, states qualify to request additional incentive funds in the amount of $1,500,000
per state, to support any of the other incentive activities listed below.

    Enhanced NDNH operating procedures. When an NDNH or SDNH cross-match
    results in a “hit,” implement a process to set a flag in the state’s weekly claims processing
    system requiring the claimant to speak to a state claims representative when attempting to
    file the next continued claim over the internet or by phone. New Jersey successfully
    implemented a similar solution in FY 2011 (see description at:
    http://www.dol.gov/dol/maps/pdf/20111212NewJersey.pdf).

    Implement state-specific solutions to prevent/reduce improper payments. States must
    identify the return on investment expected for each solution implemented and project the
    extent to which the state will reduce its improper payment rate as a result of each
    solution.

    Expanded Reemployment and Eligibility Assessment program automation support to
    continue an REA program funded by a UI REA grant, or to support implementation of a
    new REA program in a state. Funding may not be used to support REA or
    Reemployment Services (RES) activities included as part of the Middle Class Tax Relief
    and Job Creation Act.

    Payment of the SIDES subscription fees as administered by NASWA for up to 2 years,
    for states that have not previously received funding for SIDES subscription fees.

       Implement the SIDES earnings verification and monetary and potential employer
       charges data exchanges.

       Detection and enforcement activities to address worker misclassification

       State-specific UI performance improvement projects designed to help the state achieve
       standards of performance under UI Performs.

       IT security and contingency planning activities.

       Upgrade State SUTA Dumping Detection Systems to the latest ITSC version. Recent
       improvements to the SDDS significantly improved administration, security, audit trail
       logging, and migrated SDDS to Windows Server 2008 and SQL Server 2008.

       Program a database to develop and maintain agent state files for Interstate
       claimants to ensure these individuals receive the same level of services as individuals
       filing Intrastate claims (see UIPL No. 28-06).

                SUMMARY OF FUNDS AVAILABLE FOR EACH STATE

     STATE INTEGRITY ACTIVITY                         MAXIMUM FUNDS            MUST BE
                                                        AVAILABLE            COMPLETED BY
Core Integrity Activities
 Cross-Functional Task Force (available to                $80,000           September 30, 2012
all states)
 Business Process Analysis (required for                 $250,000              June 30, 2013
states with improper payment rates of 10
percent or higher; available for states with
improper payment rates under 10 percent)
 NDNH Cross-match and Recommended                        $250,000           December 31, 2012
Operating Procedures (available only to those
states that did not receive core SBR funding in
FY 2011 for NDNH implementation)
 SIDES Implementation and SIDES                      $500,000 /$100,000      Implementation:
Marketing (Implementation funding available                                  September 30, 2013
only to those states that have not previously
received SBR funding for SIDES                                                  Marketing:
Implementation; marketing funding available                                  December 31, 2012
only to those states that have implemented
SIDES)
 Claimant/Employer Messaging (available                  $100,000           December 31, 2012
to all states)
 ES Registration (required for states with ES            $100,000              April 30, 2013
registration rates of 3 percent or higher;
available for states with ES registration rates
under 3 percent)

 TOP (available only to those states that did           $400,000            March 31, 2013
not receive incentive SBR funding in FY 2011
for TOP implementation)
 SUTA Dumping Detection/Investigation                   $100,000          December 31, 2012
(available to all states)
Incentive Integrity Activities – Only those states that have completed, or that commit to
complete, all Core Integrity Activities by dates specified may apply
 Merit Staff and Contract Support                       $350,000 /$500,000 /$700,000
 Other Incentive Activities                                      $1,500,000

7. Consortium Projects. Based on positive outcomes from previous consortia investments,
   states that commit to implementation of all of the core activities, or have already
   implemented the core activities, will be eligible to submit proposals for consortium projects.
   Consortium proposals must identify a lead state agency that will be the “responsible state
   agency,” identify the partner states, and explain the projected allocation of and fiscal
   responsibility for expenditures. Additionally, the proposal must include a copy of signed
   agreement(s) by all participating states. A cover letter must be included and signed by the
   Administrator of the responsible state agency and it must explain the roles of the
   participating state(s) in the project.

   A consortium of states may submit a proposal for any of the following three purposes:

       UI IT Modernization.

           o Develop and/or modify either of the core UI Benefits or Tax and Benefit system
             designs, which have been recently developed (or join one of the existing
             consortia);

           o Develop and/or modify core UI Benefits or Tax and Benefits systems using open
             source components that are also exportable to other states; and

           o Implementation of UI Benefits and/or Tax systems designed and developed by a
             state consortium.

       Tools to reduce and recover improper payments.

           o Design and implement technology-based tools designed to prevent, detect, or
             recover improper UI payments.

       Training Center.

           o Develop and host a platform/infrastructure to support technical and program-
             related training. The training center should have the capability of developing and
             delivering core program training in areas such as adjudication, appeals, etc., as

               well as a platform for partner/other states to develop, host, and provide state-
               specific training.

8. Expansion of State Reemployment and Eligibility Assessment (REA) Programs.
   States currently participating in the REA program may request funds to enhance and/or
   expand their ongoing program. States may elect to increase the number of participants by
   selecting additional claimants in current REA offices and/or add additional offices. In
   addition, states that do not have a current REA program may elect to implement a program.
   Expansions should be submitted at the cost rate that was funded for the 2012 REA project.

9. Application Instructions. To apply for supplemental funds, a state must submit an SBR
   package including an individual application for each of the core integrity activities and for
   each of the incentive integrity activities (see Section 6) for which the state seeks funding.
   Each activity application will be evaluated separately. When the same expenditures are
   referred to in two different individual applications and would be duplicated if both were
   funded, the state must provide a brief description in both applications explaining this
   duplication to ensure that the same costs are not funded twice. The SBR package must
   address the status of all the Core Integrity Activities (see Attachment C).

   For consortium projects, the lead state will submit a joint application (see Section 7) on
   behalf of the partner states. The proposal must clearly indicate total project costs including a
   breakdown of individual state costs. We do not anticipate that we will have adequate
   resources to fully fund all consortium project proposals. Therefore, states must indicate the
   minimum funds necessary to complete the proposed project(s) and must also include in their
   cost summary the cash or in-kind resources they are prepared to commit to the project(s).
   Depending on the availability of funding and number of proposals deemed eligible for
   funding, it may be necessary to negotiate project funding.

   States proposing to expand their regular state REA program or to implement a new REA
   program should follow the current REA guidelines in UIPL 10-12. States electing to expand
   should update Attachment B from UIPL 10-12 and identify the total number of additional
   REAs to be completed and the location of the expansion. If the request is solely to add
   additional REAs the state may substitute Attachment B from UIPL 10-12 for Attachment A
   of this UIPL for the REA portion of their request. States wishing to implement a new REA
   program should submit a proposal as defined in UIPL 10-12 rather than completing
   Attachment A of this UIPL for the REA project.

10. Availability of Funds. All funds awarded for Core Integrity Activities should be properly
    obligated by the completion date assigned to that activity. For Incentive Integrity awards and
    Consortium awards, the FY 2012 appropriation allows for funds used for automation
    acquisitions or competitive grants awarded to states for improved operations, or
    reemployment and eligibility assessments and improper payments to be available for
    obligation by the states through September 30, 2014. All funds should be expended and
    liquidated within 90 days of the obligation. Upon written request, the Grant Officer may
    extend the liquidation period. An obligation of funds by a state by September 30, 2014, to an
    outside contractor (not to another state agency) allows for work supported by these funds to

   continue for 90 days beyond that date (but any work beyond that date would require an
   approved extension).

   By applying for any of these funds, the state is agreeing that the proposed projects will be
   completed with no additional Federal funding. When projects have been approved, a Letter
   of Award will be issued to the state(s) listing the proposals that are being funded in the SBR.
   It will include both the funding level for each proposal and the total funding level for the
   state’s entire SBR. States must submit forms SF-424 (OMB No. 4040-0004) and SF-424A
   (OMB No. 4040-0006) covering all approved projects in the grant upon receipt of the Letter
   of Award.

11. Project Modifications. If, during the performance period, a state wishes to reallocate funds
    among categories/projects within its SBR, it must submit a new SF-424A (OMB No. 4040-
    0006) to the regional office for approval, with a copy to the national office, if the amount to
    be moved exceeds 20 percent of any category of the initially awarded amount for the grant.
    The state must also submit a request for modification of the grant signed and dated by the
    state’s signatory authority. This information will be submitted to the Grant Officer with a
    request for modification of the SBR grant to reflect the requested changes. States may not
    elect to abandon an approved (single) project and move funds to a different project. If a state
    fails to complete a project, funds for that project must be returned to the Department.

12. Action Requested. We request State Administrators to:

   a) Review the funding opportunities and determine whether the state will apply for funds
      under this solicitation;
   b) Determine/Implement coordination needed between the UI program and Information
      Technology staff to develop a proposal under this solicitation;
   c) Work with the appropriate regional office to develop an SBR that will best serve the
      needs of the state in enhancing program integrity;
   d) Submit the state SBR by e-mail to [email protected] by 4:00 p.m. ET on July
      6, 2012. The subject line of the e-mail should include the name of the state and the
      title “Integrity-Related SBR 2012;” and
   e) Submit an electronic copy of the state SBR to the appropriate regional office.

13. Inquiries. Questions should be directed to the appropriate regional office.

14. Attachments.

   Attachment A: 2012 Supplemental Budget Request (SBR) Application Guidelines
   Attachment B: Unemployment Insurance Supplemental Budget Request Abstract
   Attachment C: Core Integrity Initiatives, State Status Summary
   Attachment D: Description of Consortium Projects
   Attachment E: State Size Classifications

Attachment A (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL18-12aA.pdf)

Attachment A

              2012 Supplemental Budget Request (SBR) Application Guidelines

Instructions: States must complete a separate document using this format for each activity
for which the state is seeking funding with the exception of the REA implementation or
expansion requests which should utilize the REA Attachments from UIPL 10-12. These
documents are to be combined in a single SBR with a SF-424 and an SF-424A combining
all projects. The lead state in a consortium must submit a separate application for a
Consortium Project.

Name of Project:

Amount of Funding Request for this Project: Provide the total amount of funds requested in
this individual project.

State Contact: Provide name, telephone number, and e-mail address of the individual who can
answer any questions relating to the proposal.

Project Description: Provide a brief description of the activity/project for which the state is
seeking funding and explain how the project will improve prevention, detection, or collection of
overpayments; or improve performance in other UI activities.

Project Timeline: Provide a list of the dates and the milestones for this project. The timeline
should include the completion of the scope of work, the designation of specific tasks to
appropriate parties, the issuance of a request for proposal if appropriate, the projected start date
for programming the new system, the proposed dates to begin and complete testing, and the
proposed date for full implementation of the system.

The weight of this element is 20 percent of the total score.

Description of Costs: Provide an explanation of all costs included in the project.

     Staff Costs for Agency and Contract Staff: Use the table format below to request state
     or contract staff. The project must clearly explain which costs are for state staff and which
     costs are for contract staff.

       Type of     Total Hours     Cost Per           Total
       Position                    Hour

     Hardware, Software, and Telecommunications Equipment: Provide an itemized list of
     hardware, software, and telecommunications equipment including the cost per item and the
     number of each item requested. A description of each item must provide any information
     needed to identify the specific item and a description of the size and capacity of each item
     if applicable.

     State Leveraged Resources: For consortium project proposals (described under Section 7
     of this UIPL), states must indicate the minimum funding necessary to accomplish the
     proposed project(s) and may also include in this section any cash or in-kind resources they
     are prepared to commit to the project(s). We will award bonus points, as described below,
     for leveraged resources that a consortium agrees to provide to the project. If an applicant
     proposes to provide additional resources, those funds will be included in the award
     agreement and we will hold the recipient responsible for providing the agreed-upon
     resources.

     Other: Identify each item and provide the expected cost per item. The need for each item
     must be explained.

The weight of this element is 20 percent of the total score.

Strategic Design: The strategic design should provide evidence of a thorough analysis of
current operations and show that the design will meet the needs of the state. For example, the
description could include an explanation of the overpayments that are currently not being
addressed or the collections that are not accomplished because the proposed automated system is
not operational. The state must explain how it has determined that this system would be the most
beneficial to its operation. This explanation might include a list of other overpayment systems
that are operational such as the National Directory of New Hires.

For example:

       Identify the data that will be received from the data matching, e.g., wages, start to work
       date, name, date of birth, address, etc.
       Estimate the amount of overpayments the system will prevent or detect in a year.
       Estimate the percentage of claimants that will be part of the data matching system.
       Describe the data system(s) that the state will use to match claimant records.
       Indicate how often the data match will be conducted.
       Describe the assurance(s) that the state has received from the owner(s) of the data, which
       will demonstrate a willingness to participate in the proposed data exchange.

The weight of this element is 30 percent of the total score.

Measurable Improvements Expected in UI Operations: Identify the areas in which
overpayment prevention, detection, or collection will be improved or on-going costs reduced
through implementation of the proposed project. All improvements and cost reductions must be
quantified rather than generalized. For example, if it is anticipated that overpayments will be
collected more quickly with the new system, the measurable improvements must identify the
anticipated time savings per overpayment and the percentage of overpayments that will be
affected by the new system.

The weight of this element is 30 percent of the total score.

Bonus Points for projects described in Section 7 of this UIPL related to Consortium
Projects:

      Additional points will be awarded based on leveraged resources provided by the state for
      the project. The points will be scaled based on the percentage of leveraged resources that
      the state proposes to commit to the project. Points will be awarded as follows:

          o   10%                          2 points
          o   11% to 20%                   4 points
          o   21% to 30%                   6 points
          o   31% to 40%                   8 points
          o   41% or greater               10 points

Attachment B (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL18-12aB.pdf)

Attachment B

                                 Unemployment Insurance
                           Supplemental Budget Request Abstract

State Name:
Total Funds Requested for All Projects:

Name, Title, and Address of Grant Notification Contact (Usually the State Workforce
Agency Administrator):
Name:
Title:
Address:
Name and E-mail Address of SBR Project or Fiscal Manager:
Name:
E-mail address:
Telephone number:
Name and E-mail Address of Benefit Payment Control Supervisor:
Name:
E-mail address:
Telephone number:
Provide the following information for each project:

Individual Project Name       Total Cost of Project        Implementation Date

Attachment C (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL18-12aC.pdf)

Attachment C

                                     Core Integrity Activities
                                      State Status Summary

This summary document must accompany any Supplemental Budget Request (SBR) for
either core or incentive funds.

STATE:              ____________________________
State Contact Name        ____________________________
State Contact Phone No.   ____________________________
State Contact Email ____________________________

Status of Core Integrity Activities: States must provide the status of each of the core integrity
initiatives by providing the information requested below. The State Workforce Agency must
provide a projected completion date for any initiative(s) that are under development.

Please indicate the status of these priority initiatives below:

1. Cross-Functional Task Force (see UIPL No. 28-11)

Date Implemented                                     _________
Funds Requested with this Submission                 _________
(Description of planned activity must be included in the SBR application)

2. Business Process Analysis

Date Implemented                                     _________
Under Development, Projected Completion Date _________
Funds Requested with this Submission                 _________
(Description of planned activity must be included in the SBR application)

3. NDNH Recommended Operating Procedure (see UIPL No. 19-11)

Date Implemented                                   _________
Under Development, Projected Completion Date _________
Funds Requested with this Submission               _________
(Description of planned or completed activity must be included in the SBR application)

4. SIDES Implementation

Date Implemented                                   _________
Under Development, Projected Completion Date _________
Funds Requested with this Submission               _________
(Description of planned or completed activity must be included in the SBR application)

5. Claimant and Employer Messaging (see UIPL No. 11-12)

Date Implemented                                   _________
Under Development, Projected Completion Date _________
Funds Requested with this Submission               _________
(Description of planned or completed activity must be included in the SBR application)

6. Employment Service Registration

Date Implemented                                    _________
Under Development, Projected Completion Date _________
Funds Requested with this Submission                _________
(Description of planned or completed activity must be included in the SBR application

7. Treasury Offset Program (see UIPL No. 02-09, Changes 1 and 2)

Date Implemented                                    _________
Under Development, Projected Completion Date _________
Funds Requested with this Submission                _________
(Description of planned or completed activity must be included in the SBR application)

8. SUTA Dumping Detection/Investigation Systems

Date Implemented                                    _________
Under Development, Projected Completion Date _________
Funds Requested with this Submission                _________
(Description of planned or completed activity must be included in the SBR application)

Attachment D (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL18-12aD.pdf)

Attachment D

                      DESCRIPTION OF CONSORTIUM PROJECTS

Purpose: To provide funds for multi-state consortia for Information Technology (IT)
Modernization projects, implementation of other integrity-related tools and staff training
activities. The technology tools developed should use open source components to the extent
feasible, be transferable, and should be available to be shared by multiple state workforce
agencies without the need to significantly customize the system, and/or be hosted in one state,
which will provide automated services to other states. The goal is for multiple states to share
common systems/tools that accommodate each state’s individual needs.

The states must jointly establish a project team to develop a planned approach for the project.
The system development as well as the implementation planning process may require the
assistance of one or more contractors. One state must be willing to act as the lead contracting
party for the consortium for a given contract. The lead contracting state will be responsible for
developing and awarding a contract with the support and participation of the other consortium
states.

The consortium will be administered by a Steering Committee consisting of the Project Lead
from each of the participating states. Each state will provide project staff (program and
technical) to work as a Project Team. The Project Team will carry out the work of the
consortium based on the direction of the Steering Committee. The Project Team will work with
the other state consortium staff and contractor staff, as necessary, to provide information that the
contractor needs to develop and plan an approach to implement to the proposed project design.
The Project Team will seek input from and provide feedback to other interested state staff as well
as to regional and national office staff. The consortium Project Team will be responsible for
providing input for and reviewing the Request for Proposal(s) (RFP) for any contract(s) and
participating in or providing input on the vendor selection, helping to define appropriate
activities for the contractor(s), and providing UI program and technical experts to support the
feasibility study.

Examples of the lead state responsibilities:

       1. Coordinate all activities related to this effort with the other participating states.
       2. Develop and provide to the Department a detailed project management plan no later
          than October 1, 2012.
       3. Develop, in consultation with participating states, an RFP.
       4. Host the selected contractor on-site, provide staff for the project management team,
          provide staff to support the overall effort and respond to requests for information.
       5. Develop system(s), share products, and provide technical assistance, as appropriate,
          working together with other members of the consortium upon completion of the
          project.

Examples of the participating state responsibilities:

       1. Assist with development of the RFP.
       2. Attend meetings/conferences with lead and participating states.
       3. Host contractor on site and provide staff to respond to specific requests for
          information.
       4. Assist in developing/presenting deliverables for the project.
       5. Provide staffing for the project management team.

Attachment E (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2012/UIPL18-12aE.pdf)

Attachment E
                                        State Size Classifications *
Alabama                                            Medium
Alaska                                             Small
Arizona                                            Medium
Arkansas                                           Medium
California                                         Large
Colorado                                           Medium
Connecticut                                        Medium
Delaware                                           Small
District of Columbia                               Small
Florida                                            Large
Georgia                                            Medium
Hawaii                                             Medium
Idaho                                              Medium
Illinois                                           Large
Indiana                                            Medium
Iowa                                               Medium
Kansas                                             Medium
Kentucky                                           Medium
Louisiana                                          Medium
Maine                                              Medium
Maryland                                           Medium
Massachusetts                                      Medium
Michigan                                           Large
Minnesota                                          Medium
Mississippi                                        Medium
Missouri                                           Medium
Montana                                            Small
Nebraska                                           Medium
Nevada                                             Medium
New Hampshire                                      Medium
New Jersey                                         Medium
New Mexico                                         Medium
New York                                           Large
North Carolina                                     Medium
North Dakota                                       Small
Ohio                                               Large
Oklahoma                                           Medium
Oregon                                             Medium
Pennsylvania                                       Large
Puerto Rico                                        Medium
Rhode Island                                       Small
South Carolina                                     Medium
South Dakota                                       Small
Tennessee                                          Medium
Texas                                              Large
Utah                                               Medium
Vermont                                            Small
Virgin Islands                                     Small
Virginia                                           Medium
Washington                                         Medium
West Virginia                                      Medium
Wisconsin                                          Medium
Wyoming                                            Small

* Based upon State Population for FY 2012 Funds

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