Employment and Training Administration
Washington, D. C. 20210






April 20, 1995




April 30, 1995











Unemployment Insurance Service




Quality Control (QC) Program Improvement (PI) Grants Program for Fiscal Year 1995 (FY 95)

  1. Purpose. To announce the availability of limited resources for State Employment Security Agencies (SESAs) to implement Benefits and Revenue QC/PI recommendations within their mainstream unemployment insurance (UI) program.

  2. Reference. UIPL 28-92 (June 4, 1992), UIPL 22-94 (April 20, 1994).

  3. Background. During each of the past five fiscal years the National Office (NO) has provided an increasing number of SESAs with the resources necessary to implement QC/PI recommendations. The implementation of the PI recommendations has contributed greatly in enhancing the SESAs overall UI operations, covering a wide range of UI activities.

  4. Policy. In FY 95, the NO will continue to provide limited funding for SESAs to implement QC/PI recommendations within their UI program. States are invited to submit PI proposals for additional funds for FY 95. Each SESA is limited to submitting a maximum of three (3) proposals in order that the available funding can be distributed among a greater number of SESAs. Eligibility is open to all States that have documented problems identified through QC findings that need to be corrected to improve operations. This includes both the Benefits and Revenue QC programs.

    The SESAs submitting requests for additional funding should include in their proposals a description of the problems identified from QC findings; the changes, actions, etc., to be accomplished in the proposed project; the type of personnel that will be involved; and the additional resources in staff and material (e.g., programming and equipment) that will be required for the one-time start-up/implementation costs. The proposal must indicate the ability of the SESA to obligate funds by December 31, 1995, and must also contain realistic timeframes for the procurement of any contractor support, for training of staff, development of material and implementation of the project.

    In addition, where outside contractor assistance is necessary, the proposal must include an estimate of the level of contractor effort.

    States receiving approval should develop and start the initial implementation phase of the project by October 1, 1995. SESAs must submit a report describing the implementation effort and any resulting outcomes, if available. This report should be received in the RO no later than December 20, 1996. The SESA must also agree to periodic Regional/National Office monitoring of the project.

    Funds granted for PI implementation are for the express purpose presented in the agency's proposal as approved, including any clarifications or stipulations made by the Department. By accepting funding for this initiative, States are agreeing to the conditions and timeframes set forth in the proposal. Failure to implement funded proposals, or redirection of any portion of the funds allocated for this purpose, may subject the funding to recapture or audit exception.

    In the event that unforeseen circumstances prevent a SESA from obligating these funds by December 31, l995, a formal extension request must be submitted to the NO via the RO. The extension request should provide a detailed explanation of the circumstances, and should be for a limited time period only. Prior experience in untimely obligation of funds will be considered in the approval process.

    Any SESA which is unable to initiate their PI project and/or obligate the funds, should return those funds to the NO via the RO as soon as they become aware of the inability to implement the project, so that other projects may be funded.

  5. PI Implementation Funding. The total dollar amount to be set aside for this project has not yet been decided. However, funding will be provided to those SESAs selected until the amount dedicated to the initiative is exhausted. The funding will be provided by September 30, 1995.

  6. Procedures for Submitting and Reviewing Proposals.

    1. State Agency Procedures. The SESAs wishing to undertake QC/PI implementation projects should submit a comprehensive proposal based on the criteria above. Attachment A provides an outline for the proposals. The proposal must be received in the appropriate Regional Office (RO) no later than ninety (90) days from the date of this UIPL. The RO will forward these proposals to the NO within seven (7) calendar days from receipt.

    2. NO Proposal Review Procedures. Proposals received timely will be evaluated according to the procedure contained in Attachment B. The panel will review each proposal to determine whether the proposal is consistent with the format contained in Attachment A. All applicants will be notified through the Regional offices of the outcome of the review and evaluation.

  7. Action Required. The SESA Administrators are requested to:

    1. Provide this information to the UI Director and other appropriate UI, BQC and RQC staff.

    2. Encourage the development of proposals for UI program improvement.

    3. Submit proposals to the appropriate RO within ninety (90) days of the date of this UIPL.

    4. Upon completion of an approved PI Implementation Grant, submit at least three copies of a final report to the RO. The final report should be received in the RO no later than December 20, 1996. The RO will forward two copies to the NO within seven (7) calendar days of receipt.

  8. Inquiries. Questions should be directed to the appropriate RO.

  9. Attachments. State Proposal Format and Panel Proposal Review Procedures.