ADVISORY:	TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 8-02
TO:	ALL STATE WORKFORCE LIAISONS ALL STATE EMPLOYMENT WORKFORCE AGENCIES ALL STATE WORKER ADJUSTMENT LIAISONS ALL ONE-STOP CAREER CENTER SYSTEM LEADS

1. Purpose. To transmit instructions for submission of quarterly Labor Exchange reports, ETA 9002 A through E, and VETS 200 A through C, via the web-based Enterprise Information Management, Labor Exchange Reporting System (LERS).

2. References. Wagner-Peyser Act as amended, Section 10 (c) and Section 3(c); and Workforce Investment Act of 1998 Section 168; 20 CFR part 652.3; Training and Employment Guidance Letter No. 1-02 and 20 CFR 667.300.

3. Background. Under 20 CFR 667.300, "All States and other direct grant recipients must report financial, participant, and performance data in accordance with instructions issued by DOL." Following the announcement of the labor exchange performance measurement system in the Federal Register on May 31, 2001, the Department revised the reporting instructions for the ETA 9002 and VETS 200 reports and published them for comment on June 6, 2001 (66 FR 30487). In accordance with the Paperwork Reduction Act, the Office of Management and Budget approved the collection of data using the revised reporting instructions contained in the ETA Handbook No. 406. The Employment and Training Administration now has the capacity to receive these state reports via the Internet. A LERS user guide complete with report record layouts and edits of internal consistency is provided as attachments to the user's guide.

4. STATE REPORTING PROCESS. Since 1988, ETA has published a measure based on the Benefit Accuracy Measurement (BAM) program that provides a comprehensive estimate of all overpayments in the UI system. Its standard is each state's own eligibility requirements as embodied in its law and policy. Although BAM provides statistically valid and representative estimates, the variation from one state to another reflects more the differing potential for error due to more or less stringent eligibility requirements than the quality of the states' benefit payment administration. Many of the errors are "technical" in nature. Many also do not tie well to the other source of information on overpayments, which are data on the amount of actual overpayments detected and recovered through ongoing Benefit Payment Control (BPC) operations. For example, BAM estimates include several categories of overpayments such as failure to meet work search requirements, that are not readily detectable, or cost-effective to detect, through BPC operations. They also include overpayments that the agency cannot recover and thus lie outside the scope of BPC.

With the implementation of Internet-based reporting, states will have sole control over data entry. Passwords assigned to states will permit access to the appropriate screens for the quarterly Labor Exchange reports and assigned Personal Identification Numbers (PINs) will enable report certification.

Attached to the LERS Users' Guides are the eight required report record layouts and the system edits to ensure internal consistency in reports. The detailed instructions contained in this attachment are to be used by states to access the reporting Web site and LERS forms for submitting required data. States will be responsible for submitting data no later than 45 days after the end of each reporting quarter.

After the state certifies its reports as complete and accurate by entry of the assigned PIN, they are available for ETA Regional Office review. In that process, regional offices will frequently be in communication with the states in a continuing effort to maximize data integrity and to resolve concerns. Only the state can modify LERS reports.

To gain access to the LERS, a user must enter a password and a user must enter a PIN to certify the state's reports. Each State Workforce Agency (SWA) should designate a primary and secondary contact who will be granted access to LERS to complete quarterly reporting. The primary contact person is the person who has signatory authority for labor exchange reports. The primary contact will be assigned a password and a PIN needed to certify the state's quarterly reports. The secondary contact person would be the individual who is responsible for preparing, entering, or uploading report data to the LERS. The secondary contact will be assigned a password only.

Each SWA must provide agency and contact information to establish contact user accounts in the LERS. The information required includes the contact persons' names, agency addresses, telephone numbers, fax numbers, and most importantly, e-mail addresses. A data form is attached to this TEGL for your convenience. Please note there are only one primary and one secondary contact per state. It is a matter of state discretion to share the required password and/or PIN with other staff to complete state reporting. Information for primary and secondary contacts should be e-mailed to Ola Abina at oabina@doleta.gov at the national office no later than September 30, 2002.

5. Action Required. States are required to submit Labor Exchange reports on the attached formats via the electronic online system, beginning with data for the quarter ending September 30, 2002, which is due no later than November 14, 2002. State Workforce Liaisons are requested to provide this TEGL to all officials within the state who need such information to comply with the new reporting requirements of the LERS.

6. Inquiries. Questions concerning this TEGL should be directed to Anthony D. Dais at adais@doleta.gov or 202-693-2784 or to your regional office.

7. Attachments. Labor Exchange Reporting System User's Guide including attachments; record layouts and edits; and contact information.