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

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEUMC

ISSUE DATE

April 30, 1991

RESCISSIONS

None

EXPIRATION DATE

5/31/75

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 23-91

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

DONALD J. KULICK
Administrator
for Regional Management

 

SUBJECT

:

Compliance Supplement for Single Audits of State and Local Governments

 

  1. Purpose. To ensure State Employment Security Agencies (SESAs) are aware of the revised Compliance Supplement for Single Audits of State and Local Governments.

  2. Reference. Training and Employment Information Notice (TEIN) No. 20-90.

  3. Background. The U.S. Department of Labor, Employment and Training Administration (ETA), issued TEIN No. 20-90 dated December 1, 1990, which transmitted the Department's portion of the Office of Management and Budget's (OMB) updated Compliance Supplement for Single Audits of State and Local Governments. The supplement was revised to provide better compliance coverage for all Federal funding. OMB has indicated that significant improvements have been included in the General Requirements section. In particular is the inclusion of testing the requirement for periodic Federal financial reports. Testing the recipients' compliance with the requirement will provide the Federal establishment with better assurances of completeness and reliability of such reports. Also, better coverage of indirect costs has been addressed in the General Requirements section, "Allowable Costs/Cost Principles."

    Attached is the Introduction, General Requirements, and the Unemployment Insurance sections of the Compliance Supplement transmitted with the TEIN.

    Subsequent to the issuance of the TEIN, the National office discovered that the Compliance Supplement relating to Unemployment Compensation for Ex-Service Members (page 3G-6) is obsolete due to a 1982 law change. Following are the current requirements for UCX eligibility as set forth in (5 U.S.C 8521):

  4. Action Required. SESAs should assure that auditors are aware of a) the requirements set forth in the attached Compliance Supplement for Single Audits of State and Local Governments and b) the current requirements for UCX eligibility when auditing the Unemployment Insurance activities.

  5. Inquiries. Inquiries concerning this UIPL should be directed to the appropriate ETA Regional Office.

  6. Attachment. Compliance Supplement for Single Audits of State and Local Governments (Introduction, General Requirements, and Unemployment Insurance Sections).