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U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20213

CLASSIFICATION

UI/QC

CORRESPONDENCE SYMBOL

TEUQS

ISSUE DATE

June 12, 1986

RESCISSIONS

None

EXPIRATION DATE

May 31, 1987

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 39-86

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

BARBARA ANN FARMER
Acting Administrator
for Regional Management

 

SUBJECT

:

UI Quality Control ADP Equipment: Property Administration and Accounting

 

  1. Purpose. To establish property administration guidelines and procedures for the ADP equipment in the SESA Quality Control (QC) offices.

  2. Background. The Department of Labor, Unemployment Insurance Service, has provided ADP equipment for each State's use in operating the 'QC program. This equipment has been purchased centrally and delivered to the States. In order to make sure that this equipment is properly maintained, and to assure its availability for the operation of the QC program, certain inventory procedures must be implemented to account for the equipment.

  3. Equipment Management. The PRO 380 micro computer,peripheral equipment (such as the Carterfone terminals)and software were purchased by the National Office using grant funds from the National Activities account. Therefore, the equipment has been purchased by, and is for use in the Employment Security system nationwide.

    As with any equipment acquired by, and for use in the State Employment Security system ( hereafter known as the "recipient"), the State agencies shall adhere to the property management standards specified in 41 CFR 29-70.215 of the Federal Regulations. More specifically, for property with a unit acquisition cost of $1,000 or more, State agencies should be aware of the following:

    1. Ownership/Title. 41 CFR 29-70.215-5(c). When the recipient purchases nonexpendable personal property with grants or agreement funds, title shall vest ,in the recipient subject to conditions set forth in 41 CFR 29-70.215-5(d), (e), and (f), and in 41 CFR 29-70.215-6. This means that title to the equipment (by the Employment Security system) and possession/utilization of the equipment (by States) is conditional based on their continuance of (QC) program activities.

    2. Use of Property. 41 CFR 29-70.215-5(d). . The recipient shall use the property for which it was acquired as long as it is needed, whether or not the project continues to be supported by Department of Labor funds.

      This means the equipment is to be used for QC activities irrespective of funding arrangements or the lack thereof.

    3. Disposition of Property - Reserved DOL Right to Title and Transfer. When property is no longer needed for the activities specified (in this case QC), the recipient will dispose of the property in accordance with following standards:

        (1)  Property with an acquisition cost of $1,000 or more. 41 CFR 29-70.215-5(e)(2)(ii). If the recipient has no need for the property and the property has further use value, the recipient shall report the item or items to the DOL (Attn: TEQUS) on Standard Form (SF) 120, Report of Excess Personnel Property, for disposition instructions. (Digital PRO 380 micro computer, Digital LA-210 printers and all equipment as valued).

        This means the State shall report the QC equipment for disposition if they discontinue operation of a QC program. Under this provision, first consideration by the DOL would be given to reassignment for QC activities in another State agency. Also, equipment may be reassigned if the national office upgrades the State equipment to process increased QC workloads and/or accommodations for programmatic changes.

        (2)  Reserved DOL Right to Title Transfer. 41-CFR 29-70.215-5(f). "For items of nonexpendable personal property having a unit acquisition cost of $1000 or more, the grant officer may require the recipient to transfer title of the property to the Federal Government or to a non-Federal third party named by the grant officer when such party is eligible under existing statutes to be furnished the property. This will normally be done only when the activity for which the property was acquired is transferred to another recipient, or when the property is no longer needed by the present recipient and the grant officer has determined that such property would be difficult or costly to replace."

      This means the Federal Government or a third party may acquire title to the QC equipment from the Employment Security system under special conditions.

    4. Shared use of Nonexpendable Personal Property. 41 CFR 29-70.215-6. "During the time that nonexpendable personal property is held for project purposes in connection with a grant or agreement under which it was acquired, the recipient shall make it available for other uses if such uses will not interfere with work under the grant or agreement for which the property was acquired. The recipient shall give first preference for such shared use to other DOL projects; second preference, to financially assisted projects of other Federal agencies; and third preference, to non-Federal uses which have purpose consistent with those authorized for financial assistance by the DOL. The recipient shall obtain prior approval from the grant officer for shared use on third preference and other non-Federal uses. The grant officer shall determine whether user changes are appropriate."

    5. Property Accountability, Inventory, and Control Safeguards. 41 CFR 2970.215-7.

        (1)  Accountability. The recipient shall maintain accurate property records in accordance with States' procedures including as a minimum the requirements as stated in paragraph (a) and (b).

        (2)  Inventory. The recipient shall inventory the equipment in accordance with State procedures provided it meets the minimum requirements in paragraph (a).

        (3)  Control. The recipient shall maintain a control system which ensures adequate safeguards to prevent property damage, loss, or theft to meet the minimum requirements in paragraph (d).

  4. National Office/Regional Office Equipment Utilization and Inventory Verification. The National/Regional office will need to verify what equipment has been sent to each State QC unit since it was purchased centrally and delivered from multiple sources. This exercise is expected to be done periodically as some State equipment configurations are expected to change due to. increased workloads, upgrades of systems, replacement due to failure, and relocations for various reasons. Regional offices will advise States of the verification process.

  5. Inquiries. Questions concerning property administration guidelines and procedures for the QC ADP equipment should be directed to your regional office.