UIPL 47-92 Attachment B

EMERGENCY UNEMPLOYMENT COMPENSATION FISCAL INSTRUCTIONS

  1. Requesting EUC (Benefits) and EUC Administrative Funds.

    1. EUC (Benefits).  State Employment Security Agencies (SESAs) will request funds from the Extended Unemployment Compensation Account (EUCA) to pay EUC. Drawdown procedures are not changed. Funds must be requisitioned via the State Unemployment Data System (SUDS), and will be transferred to State benefit payment accounts via FEDWIRE no later than the next business day after request. The SUDS screen now includes a line titled "Temporary EB" (third line from the top). EUC fund requests must be entered on that line.

      States should estimate the amount of EUC they will pay during the period for which funds are requested and specify that amount in the current requisition. Over and under estimates should be adjusted in later requisitions. States are reminded that SUDS and FEDWIRE provide almost immediate availability of funds. Furthermore, provisions of the Cash Management Improvement Act of 1990 may require the payment of interest to the U.S. Government on Federal funds for the time between receipt and disbursement by the State.

      The Funds Accounting Branch in the U. S. Treasury will transfer the EUC portion specified in the requisition from EUCA to the State account in the UTF and wire transfer the total requisition in the usual manner.

      Funds to pay EUC benefits authorized by Public Law 102-164, as amended by Public Law 102-182 and Public Law 102-244, except for benefits for employees of non-profit and governmental entities, are paid from Federal unemployment trust funds in EUCA. Funds for benefits for employees of non-profit and governmental entities, and the new EUC benefits authorized by P.L. 102-318 will be appropriated from general revenue funds in the U.S. Treasury and transferred to EUCA.

      From a State perspective, although the source of funds differs, all EUC benefit funds are withdrawn from EUCA and State drawdown procedures from EUCA are not impacted (except for funds for benefits paid under the interstate arrangement for combining employment and wages (CWC) as addressed below). However, beginning with the July reporting period, States will be required to identify separately on the ETA 2112 EUC payments for weeks of unemployment attributable to initial claims filed on or before July 4, 1992, and for weeks of unemployment attributable to initial claims filed after July 4, 1992 so that the appropriate general revenue reimbursement to EUCA can be estimated and requested. (See Attachment C, Reporting Instructions.)

      Under the CWC, a State should include in EUC drawdowns 100 percent of the amount it expects to disburse to claimants (as a paying State) and the amount necessary to reimburse other States (as a transferring State) for benefits paid through June 30, 1992. (Only the paying State will drawdown for CWC EUC benefits paid after June 30, 1992.) All future requisitions must be adjusted for reimbursement received from other States under the CWC program.

    2. EUC Administrative Funds.  UI administrative requirements relating to the processing of EUC workloads will be funded through the contingency funding process (Worksheet UI-3). The Administrative Financing Initiative short-term changes made in FY 1987 to contingency funding standardized the minutes per unit (MPU) values for the broadband workload items for the various UI programs (regular, additional benefits, short-time compensation, extended benefits, and FSC). Therefore, the allocated MPU values apply also to EUC workload, which should be included in the appropriate lines of the regular program UI-3 worksheet. Contingency funds provided for EUC through the UI-3 process will cover both operating costs and any start-up costs. Therefore, States should not submit supplemental budget requests for implementing the EUC program.

      Funds to pay UI administrative costs related to the processing of EUC workloads resulting from Public Law 102-164 as amended by Public Law 102-182 and Public Law 102-244 are provided through the FY 1992 Labor/HHS Appropriations Act using the new contingency reserve language which made available additional funds automatically based on a formula tied to the Average Weeks of Insured Unemployment (AWIU) level. Funds to pay UI EUC administrative costs resulting from P.L. 102-318 are provided through general revenue funds in the U.S. Treasury and appropriated to the Employment Security Administration Account (ESAA) in the Unemployment Trust Fund.

      The amount of funds to be transferred from general revenues to the ESAA account will be estimated by the Employment and Training Administration. Thus, even though the funding sources are different, the process is designed to make it transparent to the States. No separate or different reporting or accounting for administrative workload costs associated with this legislation will be required.

      The procedures for handling all above-base workload, including that generated by this new legislation, are the same from the States' perspective; administrative costs associated with EUC claims will be paid out of contingency through the regular process. States may request increases in their contingency advances for the 4th quarter, based on the impact of this legislation.

      Since both the contingency reserve fund and the "such sums" language in P.L. 102-318 provide for the availability of the necessary funds without going through the Congressional appropriations process, adequate and timely administrative funding is assured, regardless of the workload level.

      State agencies will receive additional administrative funds to perform monetary redeterminations on current EUC claimants due to a change in trigger status (change to a "high unemployment period") and law changes (e.g. P.L. 102-244and P.L. 102-318) through the contingency funding process. Staffyears earned for redetermination of EUC claims will be computed by using an MPU value of no more than 20 minutes. States have the option to use a lesser value MPU if they deem appropriate. This information should be included on line 5 of the regular UI-3 worksheet, Section B. States should show this calculation and the calculation for UCX redeterminations at the bottom of the additional costs worksheet. Staffyears used for this activity should be included on line 1, Section A.

  2. EUC Reporting Instructions.

    1. Time Distribution.  Time used for all EUC activities will be charged to appropriate UI time codes, in conjunction with Project Code 210.

    2. Administrative Fund Accounting.  All accounting for administrative resources relating to the EUC program will be recorded in Fund Ledger No. 92102.

    3. Accounting for EUC Payments (Benefits).

        (1)  EUC advances to the States' UTF accounts, amounts received as reimbursement from other States for EUC-CWC payments made prior to July 1, 1992, and disbursements for EUC benefit payments will be reported on the monthly ETA 2112. Do not use a separate form for this report. (See Attachment C, Reporting Instructions.) Accurate reporting of advances, reimbursements and payments is important due to the monthly reconciliation of balances with UIS records; balances are subject to constant congressional and public inquiries.

        (2)  Since all EUC will be funded out of EUCA, the Federal Employees Compensation (FEC) Account will not be used to pay UCFE and UCX claimants. Therefore, Federal agencies will not be required to reimburse the Unemployment Trust Fund for EUC paid to Federal employees. The ETA 191 report and UCFE/UCX detailed claimant data provided by States to Federal agencies must exclude EUC.

        (3)  Reporting instructions in Attachment C to this GAL for the ETA 2112 require States to separate the benefits paid to UCFE and UCX claimants to be billed to Federal agencies from the EUC paid to UCFE and UCX claimants. This distinction is important to the reconciliation of the ETA 2112 and ETA 191 reports. The reporting instructions in Attachment C to this GAL will also give instructions for reporting benefits paid to former employees of State and local government and Section 501(c)(3) non-profit employers.