DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 34-91
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	DONALD J. KULICK Administrator for Regional Management
SUBJECT	:	Implementation of Quality Control (QC) Program Improvement (PI) Recommendations into the Unemployment Insurance (UI) Program

1. Purpose. To provide limited resources for State employment security agencies (SESAs) to implement QC-PI recommendations into their mainstream UI program.

2. Reference. UIPL 33-89 (May 18, 1989)

3. Background. During the past several years, many SESAs have implemented a wide range of PI recommendations. In most of these cases, the costs of the improvement were negligible and could easily be accommodated within existing funding. In other cases the cost of the implementation was considered an investment, in view of the SESAs projected savings. Unfortunately, a number of other projects were not considered due to limited administrative resources. However, it has become apparent that States need additional support to undertake QC PI recommendations. During Fiscal Year 1990 (FY '90), the NO provided limited resources to three States to implement QC recommendations. Those States that were invited to submit proposals were selected from States that had completed NO approved QCPI studies.

4. Policy. The National Office (NO) will provide limited PI implementation funding for SESAs to implement QCPI recommendations into their UI program. States are invited to submit proposals for additional funds for FY '91. The proposal eligibility in FY '91 is open to all States that have documented problems identified through QC findings that need to be corrected to improve operations, but do not have sufficient funding to implement these findings.

   SESAs submitting requests for additional funding should describe: problems resulting from QC findings and what is to be accomplished in the proposed project; the type of personnel that will be involved, and the additional resources in staff and material (i.e., programming and equipment) that will be required, including one-time start-up costs. The proposal must also contain the timeframes for the process including development, training and implementation. In addition, where outside contractor assistance is necessary, the proposal must include an estimate of the level of contractor effort.

   Proposals should plan an initial implementation by October 1, 1991. After one year of operation, SESAs must submit a report describing the implementation effort and the resulting outcomes. This report should be received in the NO by December 18, 1992. The SESA must also agree to periodic RONO monitoring of progress.

   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. UI implementation funds redirected without specific written approval are subject to recapture or audit exception.

   SESAs which are unable to initiate projects funded for UI implementation should return those funds to the NO as soon as they become aware of the inability to implement the project so that other approved projects may be funded.

5. PI Implementation Funding. The total dollar amount to be set aside for this project is not yet available. However, the NO will provide funding to those SESAs selected until the amount dedicated to the project is exhausted. The NO must obligate the funding by September 30, 1991.

6. Procedures for Submitting and Reviewing Proposals. 

   1. State Agency Procedures.  SESAs wishing to undertake QCPI implementation studies should submit a comprehensive proposal based on the criteria above. The proposal must be received in the appropriate RO no later than thirty (30) days from the date of this UIPL. The Regional Office (RO) should submit these proposals to the NO, Attn: TEUQI as soon as possible.

   2. NO Proposal Review Procedures.  Proposals received timely by the NO will be evaluated according to the procedure contained in Attachment B. The panel will review each proposal to determine if the proposal is consistent with the format contained in Attachment A.

7. Action Required. SESA administrators are requested to provide this information to appropriate staff.

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

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