UIPL39-97-ch1.pdf

ETA Advisory File Text

CLASSIFICATION OWS CORRESPONDENCE SYMBOL OIS DFAS EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U. S. Department of Labor Washington D.C. 20210 DATE January 16 2002 ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 39-97 Change 1 TO ALL STATE WORKFORCE AGENCIES From GRACE A. KILBANE Administrator Office of Workforce Security SUBJECT The Reed Act Provisions of Title IX of the Social Security Act SSA 1. Purpose. To clarify Aautomatic data processing ADP installations in Section H of Attachment I to Unemployment Insurance Program Letter UIPL No. 39-97. 2. Reference. UIPL No. 39-97 dated September 12 1997. 3. Background. As stated in section H of Attachment I to UIPL No. 39-97 states may use Unemployment Insurance UI and Employment Service ES administrative grant funds to reimburse Reed Act expenditures Ato the extent that the costs meet the requirements for use of funds authorized by the Wagner - Peyser Act and Title III of the SSA . Three specific types of capital assets qualify for reimbursement acquisition of land and buildings for employment security purposes capital improvements to state-owned office buildings to the extent they are used for employment security purposes and ADP installations. Since these are major acquisitions with an expected useful life of several years reimbursement with UI and ES administrative grant funds amortization of the cost is approved over the course of the expected useful life. Some states have asked whether AADP installations permitted to be amortized include software. This Change 1 provides the Department s position. RESCISSIONS NONE EXPIRATION DATE 1 31 03 - 2 - 4. Policy and Rationale. Use of information technology has been expanding as innovation has permitted its application to the employment security area. Software applications have substantially improved efficiency and effectiveness of employment security operations and are a necessary component of successful program management. Like buildings and real property which can be amortized software systems can require a major investment at the time of acquisition and have a useful life over a number of years. Drawing on this parallel major software acquisitions are considered ADP installations thus allowing their amortization. Software with a cost of 1 million or more may be amortized with ES or UI grant funds subject to the conditions set forth wherein UIPL No. 39-97. The effective date of this policy is September 12 1997 the date of that UIPL. 5. Action Required. Administrators are requested to provide this information to the appropriate staff. 6. Questions. Questions should be addressed to your Regional Office.