BACKGROUND: The updated directory is the result of changes in grantee leadership along with some changes of address and telephone numbers sent in by a number of grantees. It is important that all corrections be forwarded whenever they occur so you can be assured that mail will be provided to the correct address and individual. ACTION REQUIRED: Any changes should be placed on the attached Change of Address Information form and forwarded to the Division of Indian and Native American Programs (Attention: Andrea T.B. Brown). INFORMATION: As a continuous effort to provide service, our FAX number is (202) 219-6338. INQUIRIES: Questions or suggestions should be directed to your Federal Representative. THOMAS M. DOWD PAUL A. MAYRAND Chief Director Division of Indian and Office of Special Targeted Native American Programs Programs

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BACKGROUND: DINAP annually reviews all bulletins issued since the inception of the Job Training Partnership Act for the purpose of identifying those that remain active/operational. A list of active bulletins which grantees should retain for operational purposes is attached. ACTION: Review all bulletins which have been issued since November 7, 1983 (DINAP Bulletin No. 84-1) and ensure that you have copies of those listed in the attachment. Contact your DINAP Federal Representative to obtain copies of missing bulletins. All bulletins issued during Program Year 1995 are to be retained until the next annual listing of current operating bulletins is issued. QUESTIONS: Contact your DINAP Federal Representative. THOMAS M. DOWD PAUL A. MAYRAND Chief Director Division of Indian and Office of Special Targeted Native American Programs Programs

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Reference. ET Handbook No. 401, 2nd Edition, Change No. 18.

Background. The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, otherwise known as "Welfare Reform," set requirements for States to establish New Hire Directories for the purpose of locating parents behind in payment of child support. PRWORA permits SESAs access to the information in the State Directory of New Hires. (However, at this time, Federal law does not permit access by the SESAs to the National Directory to which State Directory information is forwarded.)

Many SESAs are utilizing new hire information for Benefit Payment Control (BPC) purposes to prevent and detect benefit overpayments. Some SESAs have found this system to be much more efficient than the wage/benefit crossmatch system that, in the past, has been the primary method of detecting overpayments. This is possible because under the wage/benefit crossmatch system, the average length of time to detect overpayments is five to six months after the occurrence, frequently after claimants have exhausted benefits; while under the new hire system, overpayments can be detected early in the claims series, often intercepting payments before many weeks have been erroneously paid.

The ETA 227 Report, Overpayment Detection and Recovery Activity, collects data in Section C on the methods used to detect overpayments. Separate lines are designated for all the primary methods, including the wage/benefit crossmatch

system. However, because the new hire system is new, it is not included as a primary method of detection. Although, some SESAs may be recording data on new hire activity, currently it is not separately identifiable on the ETA 227 Report.

In order to promote the new hire system, and work toward further enhancements, the National Office plans to obtain data from all SESAs on overpayment detections resulting from this system.

Temporary Procedures. Section C, Line 308 of the ETA 227 Report is used to record "Other Controllable Activities" to detect overpayments. Change 18 to ET Handbook No. 401, 2nd Edition, issued on September 22, 1999, instructs SESAs to include new hire activity on Line 308. Since this line also captures overpayments detected through other methods, it will not be possible to sort the new hire data from the other data reported on that line. In order to accomplish this end, Change 18 of the Handbook recommends that SESAs identify the new hire data separately in the "Comments" section at the end of the report.

It is anticipated that separate reporting of new hire data will be required on a future revision to the ETA 227 Report.

Action Required. SESA Administrators are requested to provide this information to appropriate staff in the Benefit Payment Control unit. Additionally, SESAs are encouraged to use the Comments section of the ETA 227 Report to separately identify new hire data reported on Line 308.

Inquiries. Please direct inquiries to the Regional Office.

Reference. DINAP Bulletin Nos. 96-01 and 95-01. Background. Forty-four percent of the section 401 grantees had become online partners by the end of Program Year (PY) 1995. (An online partner is a grantee that has the capability to communicate via e-mail with other grantees and DINAP staff). To assist grantees with becoming an online partner, DINAP provided 37 small grantees with computer hardware (of which 24 have become online users); all grantees with Sprintmail communication software; a directory of grantee e-mail addresses; interactive Sprintmail training at two national conferences and three multi-regional meetings; and Internet application software. In addition, Earl McLetchie, contractor technician, provided technical assistance to dozens of grantees, of which, many have become online users. Information. By the end of PY 1995, the grantee/DINAP partnership had achieved most of the desired outcomes described in the PY 1995 Partnership Plan. One of the exceptions was getting all grantees to become online partners. Therefore, one of the PY 1996 Partnership Plan goals is to Get all current section 401 grantees up and active as e-mail users through the use of Sprintmail or other Internet access providers (or software) by the end of the second quarter of PY 1996 (December 31, 1996). To achieve this goal, several practical steps have been developed that include: 1) the development of a DINAP Partners electronic bulletin board; 2) continuation of the Hot News Flash that is sent via e-mail to online partners; and 3) the development of other appropriate online communication services. Action. The following actions are effective immediately and are designed to assist and encourage the 104 grantees that have not experienced the many positive dimensions of communicating by e-mail: Information for Grantees That Are Not Online: A) Earl McLetchie will contact grantees that do not have an established e-mail account according to DINAP's records, to ascertain what if any technical assistance may be required to become an online partner. Grantees may also call Earl at the following toll free number to receive technical assistance: 1-800-452-296 1. B) There are several ways to establish an e-mail account and address; many tribes and organizations have done so without any assistance from DINAP. To assist those grantees that have not established an e-mail account, Sprintmail communication software was given to all grantees in PY 1995. Many chose to use this software while others did not. DINAP has now expanded the communication software option provided by the Department to include a free Internet application software. DINAP will provide any grantee that requests the Internet application software which enables the user to communicate by e-mail as well as access the Internet. [Sprintmail software is limited to only e-mail, no access to the Internet.] Again, it is not necessary for grantees to use sprintmail communication software if another communication software is preferred, or if you are using one of the many commercial online services that provide e-mail, e.g., America Online, Compuserve, etc. C) The following minimum computer hardware and software requirements are needed to operate Sprintmail for Windows and for Internet applications: [PC Sprintmail] [Internet Applications] 386 or better IBM PC/compatible 486 or better IBM PC compatible 4 MB RAM of available memory 8 MB RAM of available memory 6 MB of free hard disk space 10 MB of free hard disk space VGA Monitor VGA Monitor/SVGA recommended High Density 3.5" floppy disk High Density 3.5" floppy disk drive drive Modem/dedicated phone line Modem/14400 kbs/dedicated line DOS 3.1 or higher and Windows 3.1 DOS 3.1 or higher and MS Windows for Workgroups Information for Existing Online Partners. D) Earl is available to assist any grantee currently using Sprintmail software to migrate to the use of the Internet application software. E) In order to determine how many online partners are active, all online grantees are asked to send a test e-mail message to Earl McLetchie on Wednesday, August 21 at (earlm@esc.ttrc.doleta.gov). F) Attached to this bulletin is the latest version of the online partners directory. If your organization has an established e-mail address that is not listed in this updated directory, please provide this information to DINAP by contacting Earl McLetchie. G) A list of computer communication definitions is provided as an attachment. Effective Date. PY 1996.

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References. 4 CFR 1-15.7. Background. In the past, OIG auditors have questioned the interest costs associated with lease purchase and other capital lease arrangements. In response to certain inquiries, OIG reviewed its policy concerning such interest costs and consulted with the Office of Management and Budget (OMB). The current policy concerning such interest costs is stated below. Policy. Interest costs (either explicit or implicit) associated with lease-purchase and other capital lease arrangements are not allowable except for interest costs associated with certain buildings as noted in OMB Circular A-87, Attachment B, paragraph C2a. OMB has stated that: "With respect to other leases which create a material equity in the leased property, interest is not an allowable cost. For these leases, rental costs are allowable only up to the amount that would be allowed had the organization purchased the property on the date the lease agreement was executed; e.g., depreciation or use allowances, maintenance, taxes, insurance, but excluding interest expenses and other unallowable costs." Action. Grantees should review the principles in OMB Circulars A-87 or A-122 as codified at 41 CFR 1-15.7 and adhere to them in the operation of their JTPA programs. Questions. Address questions concerning past disallowed interest costs to your audit resolution contact person.