Background. In 1984 Congress passed the Single Audit Act. Tribal governments are one of the groups to which it applies. OMB Circular A-128 was prepared to implement the Act. The attached regulations implement OMB Circular A-128 (for tribes) and OMB Circular A-110 (for non-profit organizations). The answers to the questions were provided by the staff of the Department of Labor's (DOL) Office of the Inspector General (IG), Division of ETA Audit Compliance. Grantees having more questions on audits are invited to submit them to DINAP. Answers will be published in a subsequent bulletin for the benefit of all grantees. Action. The attached documents should be carefully studied and the regulations followed. Inquiries. Contact your DINAP Federal Representative.

Reference. None. Information. On several occasions DINAP has been asked by Native American grantees if JTPA funds could be used as matching funds for other grants--Federal, State or other. There is nothing in JTPA or its regulations which authorizes or prohibits the use of JTPA funds as matching funds under any other Federal or State or other program. The acceptability of JTPA funds as matching funds for another grant must be decided by the agency which would award the funds. Of course, JTPA funds which are used as matching funds can only be expended in the "matched" programs for JTPA authorized activities. Inquiries. Contact your DINAP Federal Representative.

Reference. Debt Collection Act of 1982 (Public Law 97-365) and 29 CFR, Part 20. Background. The Debt Collection Act authorizes the Federal government to disclose to credit reporting agencies information concerning claims owed the United States by debtors. Accordingly, the attached final rule establishes the procedures the Department of Labor will follow in making disclosures of information on debtors to credit reporting agencies. The Department's debt collection regulations govern Employment and Training Administration debt collection. Action. Grantees should review the attached Debt Collection final rule and become familiar with the procedures contained therein. Effective Date. Immediately. Inquiries. Contact your DINAP Federal Representative.

Reference. Debt Collection Act of 1982 (P.L. 97-365) , 29 CFR, Part 20 DINAP Bulletin 85-22. Background. The background section in DINAP Bulletin 85-22 refers only to Subpart A of the final rules of the Debt Collection Act of 1982. Subpart B - Administrative Offset and Subpart C - Interest, Penalties and Administrative Costs should have been included. Subparts B and C as well as Subpart A govern the Employment and Training Administration's debt collection activities. Action. Grantees should review and become familiar with all three subparts of the final rules. Effective Date. Immediately. Inquiries. Contact your DINAP Federal Representative.

References. JTPA regulations at 20 CFR 632.39, 632.174, and 632-263. Background. This bulletin applies to Job Training Partnership Act (JTPA) Title IV-A and Title II-B funds provided directly to grantees. a. General. The JTPA regulations at 20 CFR 632.39 state: "All administrative funds for all programs operated under separate sections of the Act...may be accounted for separately...or may be pooled into one fund." b. Title IV-A Funds. The JTPA regulations at 20 CFR 632.174 state: "Administrative costs for this sub-part...shall not exceed 20 percent of the funds available." c. Title 11-B Funds. The JTPA regulations at 20 CFR 632.263 state: 'Administrative costs for this sub-part...shall not exceed 20 percent of the funds available.' d. Funds Available. The term "funds available' is defined as new-obligational authority plus authorized carryover. e. Explanation. Grantees who operate both a Title IV-A program and a Title 11-B program have the option of either allocating administrative costs back to these programs according to generally accepted accounting principles and OMB circular A-87 or establishing an ACP. If a grantee chooses to allocate the costs back tp the program, a cost allocation plan distributing the administrative costs shall be developed. Since these administrative costs are direct costs, there is no requirement for prior Federal approval of this cost allocation plan. It shall be developed and maintained on file for Federal review. If a grantee chooses to pool its administrative funds, administrative expenditures will need to be allocated to the program only for quarterly reporting puposes. Any formula distributing these costs will be acceptable as long as 1) no program contributes more to the pool than the regulations allow, 2) no more is distributed back to a program than that program contributed, and 3) only allowable JTPA administrative costs are charged to the pool. In both options the administrative limit of 20 percent must be complied with. The pooled administrative funds from each program lose their identity and grantees, auditors and Federal Representatives should monitor only the allowability of the costs incurred and the amounts contributed by the title IV-A and Title II-B program. The ACP contributions may be increased or decreased during the year as long as they o not exceed the 20 percent limit. ACP Instructions. a. Planning (Budget Information Summary). Grantees who choose to use the ACP should enter "ACP" beside the term "Administration" on Line 4 of both the TItle IV-A and Title II-B Budget Information Summary (BIS). The amount shown in the 4th column of Line 4 of each BIS will be the total planned contribution from each title to the ACF and will be no more than 20 percent of the total funds available for each title. Grantees should not submit a seperate BIS for the ACP. Grantees who change the contribution to the ACP should submit a revised BIS with the next quarterly report. b. Reporting. When preparing quarterly reports grantees may use any formula to determine how much of the total administrative costs should be charged to their Title IV-A program and to their Title II-B program, as long as no more is allocated back to the program than was originally contributed. Grantees should not submit a seperate report for the ACF. c. Authorized Carryover. After determining how much of the total administrative costs will be reported for the Title IV-A and Title II-B program, grantees can determine the carryover for each program by subtracting the reported costs from the contribution. The ACP carryover for each program should be added to the program and the next year's new obligational authority for each program. The result is the total available funds for the next year from which a contribution, up to twenty percent, to next year's ACP may be made. Grantees are reminded that policy on authorized carryover is issued annually. Action. Grantees who choose to use an ACP should follow the instructions above. Questions. Contact your DINAP Federal Representative.

References. DINAP Bulletin No. 85-16. Information. Attached is a listing of the contact points for audit information. Tribal grantees in virtually every case will have the Department of the Interior as their cognizant agency and should contact it for audit information. A17 other grantees should contact the U.S. Department of Labor Regional Office having jurisdiction over their area, as indicated is the attached. Inquiries. Consult your DINAP Federal Representative.

Reference. DINAP Bulletins No. 85-16 and 86-32. Background. DINAP Bulletin No. 85-16 contains questions and answers on audits as well as copies of pertinent laws and regulations related to the Single Audit Act of 1984. That bulletin was written exclusively for Native American Job Training Partnership Act (JTPA) Section 401 grantees. The attached manual applies to all JTPA grantees, including Native American grantees. Action. The attached Single Audit Manual should be used by grantees accountants and auditors to help ensure compliance with the Single Audit Act of 1984. Questions. Consult DINAP Bulletin 86-32 for contact points.

References. a. JTPA, Section 504; b. DINAP Bulletins 84-2 and 84-41. Background. The National Defense Authorization Act for Fiscal Year 1987, which was signed into law on November 14, 1986, amended Section 12 of the Military Selective Service Act to add a new subsection, as follows: "(g) A person may not be denied a right, privilege, or benefit under Federal law by reason of failure to present himself for and submit to registration under section 3 if--" "(1) the requirement for the person to so register has terminated or become inapplicable to the person"; and "(2) the person shows by a preponderance of the evidence that the failure of the person to register was not a knowing and willful failure to register." The accompanying Conference Report clarified "that a nonregistrant is not to be denied any Federal benefit if he can demonstrate that his failure to register was not knowing or willful." This provision was added "in order not to penalize an individual with an obvious disqualifying handicap, such as total paralysis of the limbs, or an individual who has been honorably discharged from the armed services." As a result of this new statutory requirement, it is necessary to revise the procedures for determining the qualifications of otherwise eligible males, 26 years of age and older, to participate in programs funded under JTPA. ETA is publishing these new requirements as a Notice in the Federal Register. Revised Policy. Effective immediately, in determining the qualifications of males to participate in JTPA programs, the following steps should be followed: a. For males who are at least 18 years of age but less than 26 years of age, the current procedures should continue to be used. That is, a determination should be made as to whether such males have complied with Section 504 of JTPA. b. For males 26 years of age and older a three-step process should be followed. (1) A determination shall be made as to whether the male has complied with Section 504 of JTPA and Section 3 of the Military Selective Service Act. The same procedures as are used for making such a determination with respect to males 18 to 25 may be used. If the male has complied with the above cited sections, no further action is necessary and an otherwise eligible male may participate in JTPA programs. If the male has not complied, the following determination must be made. (2) A determination shall be made as to whether the male has received an honorable discharge from the U.S. military services. If the male has received an honorable discharge from the military, no further action is necessary and an otherwise eligible male may participate in JTPA programs. Appropriate documentation would include making a copy of the individualls military discharge (Form DD-214) for the intake record. If the male does not have an honorable discharge, the following determination must be made. (3) A determination shall be made as to whether the male has a visible or obvious handicap that would permanently disqualify him from military service. If the male has such a handicap, no further action is necessary and an otherwise eligible male may participate in the JTPA program. Appropriate documentation would include a notation of the type of handicap observed by the JTPA program in the individuals intake record. If the male does not have a visible or obvious handicap that would permanently disqualify him from military service, nor an honorable discharge, and has not complied with Selective Service's Registration requirements, the procedures in 5. below shall be followed. The above determinations may be made in any order deemed appropriate by the JTPA program. Determination of Whether an Applicant Knowingly and Willfully Failed to Register. The determination of whether a male applicant knowingly and willfully failed to register as required by the Military Selective Service Act shall be made by the Selective Service System. Where a JTPA program determines that a male applicant 26 years of age or older who was born on or after January 1, 1960 does not meet any of the qualifications contained in 4.b. above, the male should be advised that an advisory opinion is required from the Selective Service, before he may be determined eligible to participate in JTPA programs. Males wishing to participate in JTPA programs who do not meet any of the qualifications in Part 4.b. are to be instructed to send information necessary for a determination to: The Office of General Counsel Selective Service System National Headquarters Washington, D.C. 20435 Necessary information consists of: (1) the applicant's name; (2) the applicant's current address; (3) the applicant's date of birth; (4) (optional) the applicant's Social Security number (Applicants may voluntarily provide this to the Selective Service to aid in differentiating among persons with identical names. The Selective Service does not, however, require this information.); (5) a statement that the applicant is requesting an advisory opinion under Section 3 of the Military Selective Service Act; and (6) the applicant's documentation regarding his reasons for not registering for the draft. The Selective Service has agreed to respond to each individual with an advisory opinion within 30 days of receipt of each request. Where the Selective Service opinion advises that the male did knowingly and willfully fail to comply with the Military Selective Service Act, the male is ineligible for JTPA services and cannot be enrolled. Where the Selective Service opinion advises that the male did not knowingly and willfully fail to register, the applicant should promptly return to JTPA with this letter. Males with such a Selective Service advisory opinion may, if otherwise eligible, be determined eligible to participate in JTPA programs. Transition Procedures - Determination Whether a Current Participant Knowingly and Willfully Failed to Register. Prior to July 31, 1987, the determination called for in Part 4.b. above shall be made for all male participants currently enrolled in JTPA programs who were born on or after January 1, 1960 for whom no such determinations have previously been made. Males who meet any of the conditions outlined in Part 4.b. shall be determined as eligible to continue to participate in JTPA. Where a male does not meet any of the conditions outlined in 4.b. above, the male shall be notified that an advisory opinion will be requested by the grantee from the Selective Service in order to determine whether he may continue to participate in JTPA. For current participants, grantees are to send information necessary for a determination directly to the Office of General Counsel of the Selective Service System. The necessary information is identical to that listed in Part 5. above, for each current participant to be reviewed for an advisory opinion. Grantees are not responsible for offering advice or direction to individuals, when obtaining a statement from each participant of his reasons why he did not comply with the draft registration requirement. The Selective Service shall respond within 30 days of receipt of each request. If the Selective Service opinion advises that a current participant did not knowingly and willfully fail to register, the male may continue to participate. If the Selective Service opinion advises that any male did knowingly and willfully fail to register, that individual must be immediately terminated from the JTPA program. Allowable Costs for Current Male Participants. Through July 31, 1987, all costs associated with males 26 years of age or older who were born after January 1, 1960, and who were determined eligible and enrolled into JTPA in accordance with the policy set forth in DINAP Bulletins 84-2 and 84-41 shall be recognized as allowable costs, if otherwise allowable, unless the grantee has received the advisory opinion made by the Selective Service that the individual did knowingly and willfully fail to register. In such instances, the costs associated with such an individual will be recognized as allowable for no more than seven days following the grantee's receipt of the opinion from the Selective Service. This seven-day action period shall apply to all Selective Service advisory opinions regarding current participants, both those opinions received by the JTPA program before July 31, 1987 as well as those received after July 31, 1987. All costs associated with current participants who have been determined eligible under the conditions described in part 4.b. of this bulletin, or who are not found in the Selective Services's advisory opinion to have knowingly or willfully failed to register, shall continue to be allowable costs for the balance of these individuals' participation in JTPA. Action. Grantees shall assure that they are in compliance with these revised requirements. Inquiries. Contact your DINAP Federal Representative.