DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 21-97, Change 1
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	GRACE A. KILBANE, Administrator Office of Workforce Security
SUBJECT	:	Procedures for the Transfer of State Unemployment Insurance (UI) Resources for State-Specific Services Provided by the UI Information Technology Support Center (ITSC)

1. Purpose. To disseminate modifications to the subject procedures.

2. Reference. Unemployment Insurance Program Letter No. 21-97, dated April 11, 1997.

3. Background. Prior to October 1, 2000, the grant officer authority for UI administration grants was located in each regional office. The shift of grant officer authority to the National Office requires a change in the procedures when States choose to pay for ITSC services through deobligation and transfer of grant funds to the Maryland agency for use by ITSC.

4. New Procedures. When States contract with ITSC for State-specific projects they may pay ITSC directly for its services or they may request a deobligation of UI administrative grant funds for transfer to the State of Maryland, Department of Labor, Licensing and Regulation (DLLR) for use by the ITSC. State Employment Security Agencies (S ESAs) wishing to use the deobligation method should send a request to the National Office through their respective Regional Office. This request should include: (1) the amount of the State administration resources that it wishes to transfer to the DLLR for use by the ITSC; (2) a statement of work including a statement of rationale and supporting documentation; and (3) a revised SF 424 that reflects the adjusted base allocation. The Regional Office will review the information and forward the request to the National Office with any appropriate comments. All of the SESA paperwork as well as the Regional Office's comments must be sent to:

   U.S. Department of Labor
   Employment and Training Administration
   Office of Workforce Security
   200 Constitution Ave., N.W.
   Washington, DC 20210
   
   Mail Stop: S-4231
   Attn: Division of Data Systems and Support

   Before submitting a request to transfer funds, States should obtain the ITSC Steering Committee's approval of projects and determine that the selected procedure is in accordance with State procurement and other applicable regulations and policies. States are responsible for monitoring progress and determining satisfactory performance by ITSC.

5. Action Required. SESAs are requested to share this information with appropriate staff.

6. Inquiries. Direct questions to the appropriate Regional Office.