References: Departmental regulations at 29 CFR 97.20(b)(7) and 29 CFR 95.21(b)(5); Treasury regulations at 31 CFR 205.7(b) and (c); DINAP Bulletin No. 95-27. Background: Most section 401 grantees have received their signed grant documents and Notices of Obligation (NOO's), which authorizes the operation of a title IV-A program for PY 1996. Grantees who use the Payment Management System (PMS) to draw down their JTPA funds should have established a regular drawdown schedule to comply with the above-referenced regulations, and to avoid having excess cash on hand. Grantees receiving grant funds through the SF-270, Request for Advance or Reimbursement are not affected by this bulletin. Information: During PY 1995, DINAP began using the attached sample printout from the Department's Grants and Contracts Management Information System (GCMIS) to analyze grantee PMS cash drawdowns against the percentage of elapsed program year, e.g., on March 15, 1996, the XYZ Tribe had drawn down $35,000 or 70.19% of their IV-A allocation and the number of days completed in the program year were 258 or 70.68% The GCMIS cash drawdown data are updated daily and available to DINAP staff for the purpose of monitoring grantee cash drawdowns. As grantees withdraw grant funds, the GCMIS system updates the new level of available funds within 24 hours. Any grantee evidencing an unusal variance (high/low) between the percentage of elapsed program year and the percentage of cash drawn down will be contacted by their Fed Rep Team to explain and possibly correct the discrepancy. Corrective action generally requires a forty-eight (48) hour reverse cash transfer procedure that is conducted through the bank that processes the grantee's PMS cash drawdowns. Approximately fifteen (15) grantees were contacted in PY 95 regarding their cash drawdowns and a few were required to take corrective action due to excess cash on hand. Action: To avoid excess cash on hand, grantees should establish a tentative drawdown schedule for PY 1996 if they have not already done so. Grantees should adhere to this schedule until a pattern of financial need is established. At that time, the drawdown schedule should be adjusted to reflect actual cash needs. This drawdown schedule should be re-evaluated periodically, perhaps monthly, to ensure that drawdowns are executed as needed thereby avoiding excess cash on hand. Additionally, drawing down too little money as opposed too much can indicate a weak financial management system. This practice can become a problem during the closeout and funds carryover process. Beginning in PY 1996, DINAP will provide each grantee on a semi- annual basis (December 31 and June 30), a copy of the the most current GCMIS status report. Grantees may also request a status report at anytime should the need arise, e.g., change in finance officer or program director, unresolved closeout issue, etc. Inquiries: Questions should be addressed to your Federal Representative team or to Greg Gross on (202) 219-7509.

BACKGROUND: The updated directory is the result of changes in grantee leadership along with some changes of address and telephone numbers sent in by a number of grantees. It is important that all corrections be forwarded whenever they occur so you can be assured that mail will be provided to the correct address and individual. ACTION REQUIRED: Any changes should be placed on the attached Change of Address Information form and forwarded to the Division of Indian and Native American Programs (Attention: Andrea T.B. Brown). INFORMATION: As a continuous effort to provide service, our FAX number is (202) 219-6338. INQUIRIES: Questions or suggestions should be directed to your Federal Representative. THOMAS M. DOWD PAUL A. MAYRAND Chief Director Division of Indian and Office of Special Targeted Native American Programs Programs

BACKGROUND: DINAP annually reviews all bulletins issued since the inception of the Job Training Partnership Act for the purpose of identifying those that remain active/operational. A list of active bulletins which grantees should retain for operational purposes is attached. ACTION: Review all bulletins which have been issued since November 7, 1983 (DINAP Bulletin No. 84-1) and ensure that you have copies of those listed in the attachment. Contact your DINAP Federal Representative to obtain copies of missing bulletins. All bulletins issued during Program Year 1995 are to be retained until the next annual listing of current operating bulletins is issued. QUESTIONS: Contact your DINAP Federal Representative. THOMAS M. DOWD PAUL A. MAYRAND Chief Director Division of Indian and Office of Special Targeted Native American Programs Programs

Reference. DINAP Bulletin Nos. 96-01 and 95-01. Background. Forty-four percent of the section 401 grantees had become online partners by the end of Program Year (PY) 1995. (An online partner is a grantee that has the capability to communicate via e-mail with other grantees and DINAP staff). To assist grantees with becoming an online partner, DINAP provided 37 small grantees with computer hardware (of which 24 have become online users); all grantees with Sprintmail communication software; a directory of grantee e-mail addresses; interactive Sprintmail training at two national conferences and three multi-regional meetings; and Internet application software. In addition, Earl McLetchie, contractor technician, provided technical assistance to dozens of grantees, of which, many have become online users. Information. By the end of PY 1995, the grantee/DINAP partnership had achieved most of the desired outcomes described in the PY 1995 Partnership Plan. One of the exceptions was getting all grantees to become online partners. Therefore, one of the PY 1996 Partnership Plan goals is to Get all current section 401 grantees up and active as e-mail users through the use of Sprintmail or other Internet access providers (or software) by the end of the second quarter of PY 1996 (December 31, 1996). To achieve this goal, several practical steps have been developed that include: 1) the development of a DINAP Partners electronic bulletin board; 2) continuation of the Hot News Flash that is sent via e-mail to online partners; and 3) the development of other appropriate online communication services. Action. The following actions are effective immediately and are designed to assist and encourage the 104 grantees that have not experienced the many positive dimensions of communicating by e-mail: Information for Grantees That Are Not Online: A) Earl McLetchie will contact grantees that do not have an established e-mail account according to DINAP's records, to ascertain what if any technical assistance may be required to become an online partner. Grantees may also call Earl at the following toll free number to receive technical assistance: 1-800-452-296 1. B) There are several ways to establish an e-mail account and address; many tribes and organizations have done so without any assistance from DINAP. To assist those grantees that have not established an e-mail account, Sprintmail communication software was given to all grantees in PY 1995. Many chose to use this software while others did not. DINAP has now expanded the communication software option provided by the Department to include a free Internet application software. DINAP will provide any grantee that requests the Internet application software which enables the user to communicate by e-mail as well as access the Internet. [Sprintmail software is limited to only e-mail, no access to the Internet.] Again, it is not necessary for grantees to use sprintmail communication software if another communication software is preferred, or if you are using one of the many commercial online services that provide e-mail, e.g., America Online, Compuserve, etc. C) The following minimum computer hardware and software requirements are needed to operate Sprintmail for Windows and for Internet applications: [PC Sprintmail] [Internet Applications] 386 or better IBM PC/compatible 486 or better IBM PC compatible 4 MB RAM of available memory 8 MB RAM of available memory 6 MB of free hard disk space 10 MB of free hard disk space VGA Monitor VGA Monitor/SVGA recommended High Density 3.5" floppy disk High Density 3.5" floppy disk drive drive Modem/dedicated phone line Modem/14400 kbs/dedicated line DOS 3.1 or higher and Windows 3.1 DOS 3.1 or higher and MS Windows for Workgroups Information for Existing Online Partners. D) Earl is available to assist any grantee currently using Sprintmail software to migrate to the use of the Internet application software. E) In order to determine how many online partners are active, all online grantees are asked to send a test e-mail message to Earl McLetchie on Wednesday, August 21 at (earlm@esc.ttrc.doleta.gov). F) Attached to this bulletin is the latest version of the online partners directory. If your organization has an established e-mail address that is not listed in this updated directory, please provide this information to DINAP by contacting Earl McLetchie. G) A list of computer communication definitions is provided as an attachment. Effective Date. PY 1996.

References. 4 CFR 1-15.7. Background. In the past, OIG auditors have questioned the interest costs associated with lease purchase and other capital lease arrangements. In response to certain inquiries, OIG reviewed its policy concerning such interest costs and consulted with the Office of Management and Budget (OMB). The current policy concerning such interest costs is stated below. Policy. Interest costs (either explicit or implicit) associated with lease-purchase and other capital lease arrangements are not allowable except for interest costs associated with certain buildings as noted in OMB Circular A-87, Attachment B, paragraph C2a. OMB has stated that: "With respect to other leases which create a material equity in the leased property, interest is not an allowable cost. For these leases, rental costs are allowable only up to the amount that would be allowed had the organization purchased the property on the date the lease agreement was executed; e.g., depreciation or use allowances, maintenance, taxes, insurance, but excluding interest expenses and other unallowable costs." Action. Grantees should review the principles in OMB Circulars A-87 or A-122 as codified at 41 CFR 1-15.7 and adhere to them in the operation of their JTPA programs. Questions. Address questions concerning past disallowed interest costs to your audit resolution contact person.

Reference. DINAP Bulletin No. 94-21; Federal Travel Regulations at 41 CFR 301-304; and section 401 program regulations at 20 CFR 632.38(k). Information. The Federal Travel Regulations are revised to increase the maximum lodging allowance in certain existing localities for official travel away from official duty stations by Federal employees and section 401 grantees.

Background. The Job Training Partnership Act (JTPA) provides for Federal oversight activity in the Job Training system. In particular, Sections 163, 165, 182, and 454 address certain Federal oversight responsibilities. In addition, 20 CFR 632.125(c) states in part that, "Any person having knowledge of fraud, criminal activity or other abuse shall report such information directly and immediately to the Secretary. Similarly, all complaints involving such matters should also be reported to the Secretary directly and immediately." Policy. The Employment and Training Administration's (ETA) policy recognizes the significant responsibilities of grantees in conducting oversight of JTPA. In order to carry out responsibilities of 20 CFR 632.125(c), the ETA is issuing procedures to be used by grantees for reporting to ETA known or suspected incidents of fraud, malfeasance, misapplication of funds, gross mismanagement, or other criminal activities in ETA-funded programs. The reports submitted by grantees serve a dual purpose. They provide information on fraudulent activities which may be prosecutable, and they provide information on other types of incidents which allow ETA to identify trends and patterns occurring throughout its various programs. The procedures described in the following section are intended to supplement, but not supplant, other systems of oversight carried out by ETA grantees. Notification to ETA of Alleged Problems. In order to facilitate the reporting process, DOL has developed procedures and standardized forms for reporting incidents. Any act which raises questions concerning possible illegal expenditures or other unlawful activities should be reported immediately. It is not the intent of the Incident Report (IR) to elicit reports only after determination that an act or allegation is legally prosecutable. All such incidents shall be reported to ETA immediately even though the case may be subsequently handled by another Federal agency, or State or local law enforcement agencies. DOL Incident Report Form DL 1-156 should be used to notify ETA of all known or suspected cases of fraud, abuse, or other criminal activities in ETA-funded programs (See Attachment I, Facsimile of Form DL 1-156; Attachment II, Use and Preparation of Form DL1156; and Attachment III, Definition of Terms). The original and one copy of this form should be forwarded to the Division of Indian and Native American Programs (DINAP) within one work day of the discovery of the occurrence. DINAP will immediately forward the IR to the Office of Program and Fiscal Integrity (OPFI), through the Office of Special Targeted Programs (OSTP), for transmittal to the Office of the Inspector General (OIG). Office of the Inspector General/DOL Hotline. It is anticipated that the incident reporting procedures outlined above will be utilized to report matters to DINAP. However, all ETA grantees are requested to notify their employees of the availability of the OIG/DOL Hotline for providing information confidentially. The Hotline--800-424-5409 (357-0227 FTS and Washington, D.C., local area)--was established for employees and the public to notify the OIG of suspected fraud, abuse, or waste in DOL-funded programs. The Hotline permits reporting of matters anonymously, if desired., to avoid fears of reprisal. Information supplied via the Hotline should be as specific as possible to enable the OIG to identify and solve the problem. The Hotline should not be used for resolving employee grievances, EEO complaints, labor disputes, or other personnel concerns. Directive. a. Establish procedures for use by grantee and subrecipient personnel to ensure that their responsibilities are fulfilled to forward IRs to DINAP within one work day of the discovery of the occurrence. b. Ensure that staff of grantees and subrecipients are familiar with the procedures that are established and the content of the attachments to this document. Questions. Questions concerning this bulletin should be directed to your Federal Representative.

Background. At the end of each Program Year, which begins on July 1 and ends on June 30, every grantee is required to submit an Annual Status Report that is due no later than 90 days after the expiration of the Program Year. Important notice for ARS pilot participants: As formerly agreed, grantees participating in the Automated Reporting System (ARS) pilot project must submit their PY data to Mr. Ron D'Amico with the Social Policy Research (SPR) Associates, and therefore are not required to submit an ASR report to DINAP. However, pilot grantees are required to submit their financial data on the new ASR financial report form to DINAP. Please review the list of ARS pilot grantees provided as an attachment. If for any reason your program is no longer participating in the pilot project, you must submit a PY 95 ASR to DINAP. Questions regarding the ARS pilot project should be directed to Mr. Norris Tyler at (202) 219-6485, ext 138. Information. The California Indian Manpower Consortium, Inc. has produced a new ASR Edit Check Disk with instructions. The disk and instructions are available from DINAP for free upon request. Because the new reporting forms replaced all of the old forms, including the ASR forms, the edit check disk issued to grantees last year to check the PY 94 ASR for errors prior to submission cannot be used for the PY 95 ASR. Please contact Andrea Brown at (202) 219-8502 to request the new ASR Edit Check Disk and instructions. Action Required. 1) Submit the PY 95 ASR by the September 30, 1996 due date; 2) use the new ASR forms (see ASR form attachments); 3) do not hesitate to contact your Fed Rep Team members immediately if you need assistance with completing or understanding the ASR forms; and 4) submit the PY 95 ASR to the following address, only: Ms. Andrea Brown Manpower Development Assistant Division of Indian and Native American Programs Room N-4641 FBP ATTN: MIS Desk U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, D.C. 20210

Background. Designation procedures for Native American grantees are contained at 20 CFR, sections 632.10 Eligibility requirements for designation as a Native American grantee, and 632.11 Designation of Native American grantees. Pursuant to these requirements, the Department of Labor (DOL) designates entities as eligible grantees to administer section 401 grants that provide employment and training services to Indians and Native Americans. The attached Federal Register notice describes the Department's PY 1997-98 designation process. The JTPA section 401 program is a formula-funded program which is limited to designated grantees. An entity which has been designated as a section 401 grantee becomes eligible to apply for title IV-A program funds and, as appropriate, title II-B Summer Youth program funds without further competition. Grantees are awarded their annual formula grant allocation upon approval of their annual plan(s). The waiver of competition provision of section 401(l) of the Act was utilized two years ago for the PY 1995-96 designation cycle, and will not be used for the PY 1997-98 designation cycle. To facilitate the implementation of the demonstration project, tribal entities participating under Public Law 102-477 are exempted from designation cycle competitions. The notice of intent process, which is described in the attached Federal Register notice, consists of two steps. The first step, the Advance Notice of Intent, is optional. The second step, the Final Notice of Intent, is mandatory. For current section 401 grantees, a copy of your present designated service area is attached for your reference. Action Required. All entities interested in applying for designation as a JTPA section 401 grantee for PYs 1997 and 1998 need to follow the instructions set forth in the attached Federal Register notice. The Department has decided to utilize a free-form exercise for the Advance Notice of Intent process this year, even though optional forms and instructions for the ANOI process have been issued in prior designation announcements. Grantees participating in the ANOI process may use any format they choose, so long as they clearly state the service area(s) being applied for by State(s), counties, and reservation(s). They should also indicate which of these jurisdictions are not currently part of their service area. Inquiries. Questions should be directed to your Federal representative or Mr. Greg Gross at (202) 219-7509 or Internet E-Mail [grossg@doleta.gov].

References: Farmworker Bulletin 91-26, "Carryover Reporting," July 26, 1991; and Farmworker Bulletin 89-11, "Federal Representatives' Responsibilities," May 18, 1989. Background: The assignment of Federal Representatives was revised in September. The Federal Representatives and the current grantee assignments are presented below: Responsibilities of Federal Representatives: The responsibilities of Federal Representatives were last sent out in Farmworker Bulletin 89-11, dated May 18, 1989. Since that time, ETA has undergone a steady downsizing that is expected to continue. As ETA's approach to its roles is gradually "reinvented," the evolving character of Federal level employment and training is slowly emerging to reveal an increasing emphasis on technical assistance as the tool for improving grantees' performance. The Federal Representative is the principal contact person with ETA's grantees. Consistent with the trend in ETA's role, grantees may expect the Federal Representative to either directly provide or arrange for assistance on a range of issues, including such matters as answers to daily technical questions, assistance with arrangements for specialized technical assistance from third parties, and informal (i.e., unofficial) interpretations of SS402 regulations and Bulletins. When specific assistance is requested by a grantee, this may include on-site technical assistance by a Division of Seasonal Farmworker Programs (DSFP) representative or other Federal staff as arranged by agreement with the grantee, and to the extent available travel funds permit. The assigned Federal Representative also serves as the principal member of ETA staff for fulfilling ETA's oversight obligations by: -- conducting compliance monitoring, -- evaluating performance, -- communicating and consulting with grantee staff on findings, -- following up on open audit findings, and -- responding to confidential complaints received from various sources, including grantee staff. Limits of Authority: Neither Federal Representatives, nor any other DSFP staff, are appointed Grant Officers. Consequently, Federal Representatives are not authorized to commit funds or provide official authorizations or determinations on the use of or allowability of funds. When a grantee seeks official opinions or authorizations to change the scope of work, cost, period of performance, terms or conditions of its grant, the DSFP staff will present the request or modification for these changes or actions to the Grant Officer. Federal Representatives or other SS402 staff will advise on such questions, and assist with communications with the Grant Officer. Each may be reached at (202) 219-8216. Federal Representative Assignments: BARBARA CALDWELL: Alabama Department of Economic and Community Affairs C-5435-5-00-81-55 Arkansas Human Development Corp. C-5436-5-00-81-55 Central Vermont Community Action Council, Inc. C-5466-5-00-81-55 County of Kern, CA C-5438-5-00-81-55 Florida Dept of Education C-5445-5-00-81-55 Illinois Migrant Council, Inc. C-5448-5-00-81-55 Maui Economic Opportunities, Inc. C-5446-5-00-81-55 Mississippi Delta Council, Inc. C-5455-5-00-81-55 Midwest Farmworker Employment and Training, Inc.(Minnesota, North Dakota, and South Dakota) C-5454-5-00-81-55 Motivation Education and Training (MET), Inc. (Texas and Louisiana) C-5452-5-00-81-55 New England Farm Workers' Council (Massachusetts, Connecticut, and New Hampshire) C-5443-5-00-81-55 Portable Practical Educational Preparation, Inc. (Arizona) C-5437-5-00-81-55 Training and Development Corporation (Maine) C-5453-5-00-81-55 Weber-Morgan PIC (PIC, Inc.) (Futures Through Training, Inc.) -- Housing Grants: MET, Inc. C-4716-4-00-81-55 Southeast Regional Housing (Florida Non-profit Housing, Inc.) Arkansas Employment Security Department (Hope Arkansas Migrant Rest Center) C-4718-4-00-81-55 ES Grant BEA FOWLER: Rural Opportunities, Inc. (Ohio, New Jersey, New York, and Pennsylvania) C-5459-5-00-81-55 Telamon Corporation (Delaware, Georgia, Indiana,Maryland, Michigan, North Carolina, South Carolina, Virginia, and West Virginia) C-5444-5-00-81-55 Housing Grants: Telamon Corporation C-4715-4-00-81-55 Rural Opportunities, Inc. C-4713-4-00-81-55 DAN TREMENTOZZI: Central Valley Opportunity Center, Inc. -- California C-5441-5-00-81-55 Puerto Rico Department of Labor and Human Resources C-5463-5-00-81-55 NAF Multicultural Human Development Corporation -- Nebraska C-5458-5-00-81-55 Northwestern Community Action Programs of Wyoming (NOWCAP), Inc. C-5469-5-00-81-55 Proteus, Inc. -- Iowa C-5449-5-00-81-55 Proteus, Inc. -- Californian C-5440-5-00-81-55 Rural Employment Opportunities, Inc. -- Montana C-5457-5-00-81-55 SER Corporation of Kansas C-5450-5-00-81-55 Center for Employment and Training, Inc. (California and Nevada C-5439-5-00-81-55 Home Education Livelihood Program (HELP) Inc. -- New Mexico C-5460-5-00-81-55 Idaho Migrant Council, Inc C-5447-5-00-81-55 Kentucky Farmworker Programs, Inc. C-5451-5-00-81-55 Oregon Human Development Corporation C-5462-5-00-81-55 ORO Development Corp. -- Oklahoma C-5461-5-00-81-55 Rocky Mountain SER/Jobs for Progress, Inc. -- Colorado C-5442-5-00-81-55 Rural Missouri, Inc. C-5456-5-00-81-55 Washington State Migrant Council, Inc. C-5467-5-00-81-55 Tennessee Opportunity Program for Seasonal Farmworkers, Inc. C-5464-5-00-81-55 United Migrant Opportunity -- Wisconsin C-5468-5-00-81-55 Housing Grants: Pacific Mountain Farmworkers Housing Partnership C-4717-4-00-81-55 Rocky Mountain Hi Coalition (PPEP) C-4714-4-00-81-55 Policy on Carryover Limitation: Carryover dollar levels are subject to the ceiling established by ETA. The ceiling remains at its historical level of 20 percent of total funds available for the terminating Program Year (PY). The ceiling will continue at the 20 percent level for carryover of PY'96 funds into PY'97. Action: Grantees should have submitted a modification adjusting for final carryover dollars (and participants) from PY 1995 to PY 1996. Of course, the actual amount of carryover and the number of carryover participants should reconcile with the reported costs and activity for the accumulated 1995 program year, including the SPIR data sent to Social Policy Research. Grantees that have not done so should submit a grant modification which finalizes PY'95 carryover dollars and participant levels.