U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

Grants

CORRESPONDENCE SYMBOL

TMG

ISSUE DATE

June 14, 2000

RESCISSIONS

None

EXPIRATION DATE

Continuing

DIRECTIVE : TRAINING AND EMPLOYMENT INFORMATION NOTICE NO. 24-99
 
TO : ALL STATE WORKFORCE LIAISONS
ALL STATE EMPLOYMENT SECURITY AGENCIES
ALL STATE WORKER ADJUSTMENT LIAISONS
ALL ONE-STOP CAREER CENTER SYSTEM LEADS
 
FROM : LENITA JACOBS-SIMMONS
Deputy Assistant Secretary
 
SUBJECT : Transfer of Grant Officer Authority for the Employment Service (ES), Unemployment Insurance (UI), and Trade (TAA and NAFTA/TAA) Programs

  1. Purpose. To inform the States of the transfer of Grant Officer authority for the Employment Service, Unemployment Insurance, and Trade (TAA and NAFTA-TAA) programs from the Regional Offices to the National Office.

  2. Background. Section 506(e) of the Workforce Investment Act of 1998 required the Employment and Training Administration (ETA) to reorganize and realign its functions in order to effectively fulfill its duties and responsibilities required by this Act. The reorganization was approved on August 7, 1999.

    Currently, grant officer authority for ES, UI and Trade program activities is largely in the Regional Offices. This also includes Disaster Unemployment Assistance (DUA) funds administered under the UI program. As part of the reorganiza-tion, grant officer authority for these activities is to be transferred to the National Office. Toward this end, a team, consisting of National and Regional Office staff, was formed to establish an implementation plan to effect the transfer. The plan includes time lines for transferring the authority as follows:

    1. The Wagner-Peyser Act ES program has the base grant (labor exchange activities) funded on a Program Year basis. Additionally, One-Stop LMI funds are also made available on a Program Year basis. The target date for transferring these portions of the Wagner-Peyser Act grant authority is July 1, 2000 although One-Stop/LMI grants may not be funded until after July 1.

    2. The Wagner-Peyser Act ES cost reimbursable activities, the UI program, and Trade programs are funded on a Fiscal Year (FY) cycle. The grant authority transfer target date for these activitiesis October 1, 2000.

  3. National/Regional Office/Responsibilities. The functions of the Regional Offices will remain essentially the same except that the National Office(via the Office of Grants and Contracts Management) will execute and maintain all grant agreements and Notice of Obligations (NOO) and other grant modifications after receiving notification from the Regional Offices and/or responsible National Office components that the State plan documents have been approved. Regional Offices will continue to: collaborate with each State in the formulation of plans; approve plans; receive and make recommendations on funding requests for TAA and NAFTA-TAA; provide technical assistance; monitor and provide oversight of grants; and reconcile grants prior to closeout by the National Office.

  4. Grant Agreements. Currently, there are financial, multi-year and annual master agreements which govern the use of funds for the UI, ES and Trade activities. This transition, including WIA implementation and new Departmental accounting systems, will require the establishment of new agreements. It should be emphasized that the new funding agreements will incorporate the initial Notice Of Obligation through which each State will receive its initial funding allotment/awards. All agreements except for the non-financial agreements (e.g., Governor/Secretary Agreements) will have a designated grant number. NOO grant modification documents will no longer use fund ledger codes; however, this does not preclude States from continuing to use them. These agreements, which must be signed by the individual State agency signatory official and executed by the National Office Grant Officer, for the upcoming Program Year and Fiscal Year periods, will be forwarded to the States in early June for ES funds and in early September, for UI and Trade funds. Also, with respect to existing grants, current PY and FY funds may continue to be used until expended under the current Grant authority of the Regional Offices.

  5. Action Required. The Department encourages States to participate fully and actively with the ETA National and Regional Offices in the execution of new grant agreements to ensure the timely funding of the above PY and FY funded activities. States have already received and have responded to planning guidance for the Wagner-Peyser Act labor-exchange activities. However, as in prior years, States will be receiving planning guidance for the preparation of any required plans for the balance of ES, UI and Trade program activities.

  6. Inquiries. Please direct inquiries to your appropriate Regional Office.