Administrative funding limits for disaster unemployment assistance

uipl26-07acc.pdf (https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2007/uipl26-07acc.pdf)

                                                      CLASSIFICATION
    EMPLOYMENT AND TRAINING                           OWS
 ADMINISTRATION ADVISORY SYSTEM                       CORRESPONDENCE SYMBOL
    U.S. DEPARTMENT OF LABOR                          DUIO
        Washington, D.C. 20210                        DATE
                                                      July 23, 2007


ADVISORY:      UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 26-07

TO:            STATE WORKFORCE AGENCIES

FROM:          EMILY STOVER DeROCCO /s/
               Assistant Secretary

SUBJECT:       Administrative Funding for Disaster Unemployment Assistance (DUA)
               Activities


1. Purpose. To inform state workforce agencies that the Department of Homeland
   Security, Federal Emergency Management Agency (FEMA) will not approve any
   costs related to new/enhanced automation of DUA activities. In addition, FEMA
   requires prior approval of costs related to: 1) announcements of the availability of
   DUA; and 2) administrative costs exceeding 15 percent of the total DUA benefit
   funding request.
2. References. Title III of the Social Security Act (SSA), 20 CFR Part 625, ET
   Handbook 356, and Section 410 of the Robert T. Stafford Disaster Relief and
   Emergency Assistance Act (the Act).
3. Background. The President may declare that a major disaster exists at the request
   of the Governor of an affected state and authorize Federal assistance to be made
   available, which may include DUA. When a disaster is declared that includes DUA,
   state unemployment insurance (UI) agencies act as agents of the Federal
   government in administering the DUA program. DUA is available to eligible
   individuals who are unemployed as a direct result of the major disaster and who are
   not entitled to any other state or federal unemployment compensation program.
   FEMA provides funding for the DUA program, including funding for DUA benefits
   and associated administrative costs. UI grant funds may be used only to administer
   state and Federal UI programs and may not be used to administer DUA.



 RESCISSIONS                                          EXPIRATION DATE
                                                      July 23, 2008



4. Guidance Related to Administrative Funding Requests:
  A. Announcements of DUA Availability. DUA regulations at 20 CFR 625.17 require
     prompt announcement by the state of the availability of DUA benefits. The state
     must announce the following information throughout the major disaster area:
     (1) individuals who are unemployed as the result of the major disaster may be
     entitled to DUA; (2) initial applications for DUA should be filed as soon as
     possible, but not later than the 30th day after the announcement date; (3) the
     beginning date of the Disaster Assistance Period; and (4) where individuals may
     obtain further information and file applications for DUA.
     In the past, states used their discretion and knowledge of the impacted
     community in determining when free public service announcements needed to be
     augmented, and they arranged to make these paid announcements via the
     appropriate commercial media. States then submitted requests for
     reimbursement of those advertising costs incurred to FEMA as a portion of the
     states’ administrative expenses. States should no longer announce DUA
     availability when an advertising cost will be incurred to do so. Instead, a state
     must coordinate with FEMA to make these announcements through the
     appropriate FEMA Regional Public Information Office. States will then meet the
     requirement under the DUA regulations for announcing the availability of DUA
     upon sending the announcement information to FEMA for action.
     The FEMA National Office has advised all of its Regional Public Information
     Offices that it is FEMA’s responsibility to make announcements of the availability
     of DUA. A state will provide all of the necessary information for these
     announcements, which must include eligibility requirements, filing deadlines, and
     application procedures. The state will also provide translations of the
     announcements into languages other than English, as necessary. If a state
     believes that additional special announcements regarding DUA availability are
     needed, approval of costs related to such special announcements must be
     obtained from FEMA in advance.
  B. Automation Costs Associated with DUA Processing and Payments. Many states
     rely primarily on manual processes to administer their DUA program. Some
     states have requested funds to automate DUA, or to enhance existing DUA
     automated systems, to introduce efficiencies, improve timeliness and promptness
     as required at 20 CFR 625.9(a), and provide higher quality services to individuals
     subsequent to a disaster declaration in the state(s). However, states should be
     aware that FEMA has advised the Department that such automation costs will
     not be approved unless the state can clearly show that the automation will result
     in cost savings for the current specific disaster(s). The Department of Labor is
     currently discussing state automation needs for DUA with FEMA.
     States may use funds other than UI administrative funds to automate DUA
     processes, but they should not expect to be reimbursed by FEMA for these
     expenditures.


      States that already have automated systems in place to process DUA claims
      must document the cost share for the claims processing attributable to DUA and
      must include these processing costs and service fees in their initial and
      supplemental funding requests.
      Details for the preparation of the initial and supplemental funding requests can be
      found in ET Handbook No. 356 Chapter IX.
      States are reminded that if they expect to have administrative costs exceeding 15
      percent of the benefit amount request, they are required to submit sufficient
      justification and documentation of these costs. States must include in the
      documentation, detailed information for costs, by category, associated with a
      state’s approved cost allocation plan or indirect cost rate. The Department of
      Labor is working with FEMA to obtain clarification and develop additional
      guidance regarding the type of justification that is required.
5. Action. State administrators are requested to distribute this advisory to appropriate
   staff.
6. Inquiries. Questions should be addressed to the appropriate Regional Office.