ETA 8403 Section III Banking Activity

UI REPORTS HANDBOOK NO. 401

ETA 8403 Summary of Financial Transactions - Title IX Funds

CONTENTS

A. Facsimile of Form III-2-2

B. Purpose III-2-3

C. Due Date and Transmittal III-2-3

D. General Reporting Instructions III-2-3

E. Definitions III-2-3

1. Allocation III-2-3

2. Appropriation III-2-3

3. Enactment Date III-2-4

4. Expiration Date III-2-4

5. Obligation III-2-4

6. Expenditure III-2-4

7. Disbursement III-2-4

8. Amortization III-2-4

9. Redeposit III-2-4

F. Item by Item Instructions III-2-4

1. Column I - Credited to Unemployment Trust Fund Account III-2-4

2. Column II - Redeposits to Trust Fund III-2-5

3. Column III - Appropriations III-2-5

4. Column IV - Withdrawals III-2-6

5. Totals III-2-6

G. Checking the Report III-2-6

ETA 8403, SUMMARY OF FINANCIAL TRANSACTIONS Title IX Funds (“Reed Act” Money) State: Agency: Month Ended: OMB Approval No. 1205-0154
I		II	III					IV
CREDITED TO UNEMP. TRUST FUND ACCT.		REDEPOSITS TO TRUST FUND	APPROPRIATIONS					WITHDRAWALS
			(a) ENACTED		(b) OBLIGATED		(c) UNOBLIGATED BALANCE	(a) FROM TRUST FUND	(b) EXPENDED	(c) UNEXPENDED BALANCE
DATE	AMOUNT		DATE	AMOUNT	DATE	AMOUNT
TOTAL
Signed __________________________________________ Title _________________________________________ Date_______________________
OMB No.: 1205-0154 OMB Expiration Date: 10/31/2012 Average Estimated Response Time: 30 Minutes O M B Burden Statement: These reporting instructions have been approved under the Paperwork reduction Act of 1995. Persons are not required to response to this collection of information unless it displays a valid OMB control number. Public reporting burden for this collection of information includes the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Submission is required to obtain or retain benefits under 42 USC 503(a)(4)and(5). Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the U.S. Department of Labor, Office of Workforce Security, Room S-4231, 200 Constitution Ave., NW, Washington, DC, 20210.

A. Facsimile of Form

B. Purpose

Form ETA 8403 provides a cumulative summary of expenditures of state unemployment funds pursuant to Section 903(c)(2) of the Social Security Act (SSA), the "Reed Act" as amended. The information reported is used for cash flow monitoring and financial accounting and is the basis for certifying the amount of Reed Act obligations set aside in a Reed Act "sub-account" in a State Unemployment Trust Fund (UTF) account as described in UIPL No. 5-90.

C. Due Date and Transmittal

Report data will not be submitted electronically but by mail or facsimile of ETA 8403, to be received no later than the 1st day of the second month following the month for which activity is reported. January reports are due by the 1st of March. (See Introduction and General Reporting Instructions, Section I for the address.) A Form ETA 8403 should be submitted only for those months in which Reed Act transactions have occurred, however, an updated report for the last month of the Federal fiscal year (September) is required from all States.

D. General Reporting Instructions

Form ETA 8403 is to be submitted for each month in which there is a legislative action and/or an unemployment fund transaction, e.g., an appropriation enacted, funds obligated, withdrawn from the UTF account, or expended, amortization amounts redeposited to the UTF account, or restoration of amounts used to pay benefits. Each state must submit the form updated and made current as of the close of each Federal fiscal year (September 30), even if no activity occurred during the year. The heading of the form includes the state name, the state agency name, and the report date, which will be completed using the last day of the month, e.g., 1/31/94. The form must be signed by the Administrator of the agency, the Unemployment Insurance Director, or other official designated by the agency administrator as responsible for the data provided. Machine generated forms may be used but must not exceed 82 by 11 inches.

E. Definitions

1. Allocation. A transfer of funds from the employment security administration account to a state account in the UTF pursuant to Section 903(a), SSA.

2. Appropriation. An action by the legislative body of a state, authorizing the use of Reed Act funds for employment security administration under conditions set out in Section 903(c)(2), SSA. The legislative action must be specific as to the purpose(s) for which funds are appropriated, the amount appropriated, and include a 2-year limit, beginning with the date of enactment, after which the appropriation expires and such funds may not be obligated.

3. Enactment Date. The date on which a legislative action appropriating Reed Act funds becomes law. In some states, a legislative action becomes law on the effective date stated in the legislation; in other states, the date on which the legislation is approved or signed by the governor of the state.

4. Expiration Date. The date, 2 years after the enactment date, upon which an appropriation expires and after which funds may not be obligated. For example: Enactment date 4/1/94, Expiration date 3/31/96.

5. Obligation. Pursuant to a legislative appropriation, the costs of orders placed, contracts and subcontracts awarded, goods and services received, or any similar transaction which occurs on a specific date that requires the disbursement of funds on the same date or on a future date.

6. Expenditure. Obligated funds which have been withdrawn from a state's account in the UTF for disbursement.

7. Disbursement. Funds withdrawn from a state's account in the UTF and used for the payment of a mature obligation.

8. Amortization. The scheduled repayment of a Reed Act expenditure with Title III grant funds or other fund source. Repayment with Title III grant funds is allowable only for recovery of expenditures used in the acquisition or major renovation of state-owned buildings or the acquisition of automated data processing installations.

9. Redeposit. The deposit to a state account in the UTF of a scheduled amortization payment or the recovery of an expenditure from sales proceeds or the disposition of Reed Act property and equipment. All other recoveries are treated as reductions in the amount of disbursements and obligations.

F. Item by Item Instructions

1. Column I‑Credited to Unemployment Trust Fund Account. Enter the effective date and the amount of the following three types of transactions in this column:

a. Allocations to the State's UTF account pursuant to Sections 903(a) and 903(b), SSA, including adjustments. (Some states will also have adjusting entries as one or more allocations were changed).

b. Any amount(s) of Reed Act funds used to pay benefits, must be entered as a negative figure in column I. The total allocation is reduced accordingly.

c. When Reed Act funds previously used to pay benefits are restored to availability as provided in Section 903(c)(3), SSA, such amount shall be entered as a positive figure in column I. The total allocation is increased accordingly.

Note: Interest credited to a State account in the Unemployment Trust Fund by the U.S. Treasury may not be apportioned to or otherwise credited to "Reed Act" funds.

2. Column II‑Redeposits to Trust Fund. Enter amounts resulting from the following types of transactions in this column:

a. Amounts redeposited from amortization of authorized expenditures for real estate and ADP acquisitions and the major renovation of State-owned buildings.

b. Recoveries from the sale of Reed Act property, not to exceed the amount of the original expenditure.

No other returns of funds may be entered in this column. The return of undisbursed amounts previously withdrawn from the UTF account must be entered as a negative amount, as appropriate, in column IV(a). Redeposits of funds are also reported on line 14, in columns C and D of Form ETA 2112, UI Financial Transaction Summary for the same month as reflected on Form ETA 8403.

Note: Rents received on the use of Reed Act properties and interest earned or profits realized on the sale or disposition of real estate or other property acquired with Reed Act funds, must be paid into the state's UTF account but cannot be apportioned or credited to "Reed Act" funds.

3. Column III‑Appropriations.

a. Enacted. Enter in these columns the exact date and amount of each appropriation enacted by the state legislature. If an appropriation expires (2 year limit) or is otherwise invalidated or reduced before being obligated, enter the invalidated, reduced, or expired amount as a negative entry directly below the original appropriation amount. The total amount of appropriations is reduced accordingly.

b. Obligated. Enter in these columns the exact date and amount of an appropriation actually obligated on the same line as the relevant appropriation amount in column III(a). If more than one obligation is made against the same appropriation, the date and amount of each subsequent obligation is shown in chronological order. Obligated funds which are not expended are entered as a negative figure directly below the original obligation amount, thereby reducing the original obligation. The total amount of obligations made against the same appropriation cannot exceed the total appropriation amount.

c. Unobligated Balance. For each appropriation, enter the difference between the total amount appropriated in column III(a) and the total amount obligated in column III(b). When the entire appropriation is obligated, enter "0" in this column (c). The amount of any unobligated balance in this column, upon expiration of the appropriation or completion of a contract, should be shown as a negative figure directly below the appropriate obligation amount in column III(b).

4. Column IV‑Withdrawals.

a. From Trust Fund. For each obligation amount in column III(b), enter the cumulative amount of funds withdrawn from the State's UTF account for payment as of the end of the report month. Each entry should be shown on the same line as the corresponding obligation amount in column III(b). The cumulative amount withdrawn must not exceed the total amount of the related obligation.

Amounts withdrawn must also be reported on line 41, in columns C and E of Form ETA 2112 for the appropriate month. Withdrawn amounts which are not disbursed within 1 week must be returned to the state's UTF account and shown as a negative figure below the original cumulative amount. Withdrawals should be limited to the amount of currently payable obligations, therefore, negative entries should be minimal.

b. Expended. For each amount withdrawn in column IV(a), enter the cumulative amount of funds that were actually disbursed as of the end of the report month. Each entry should be made on the same line as the related amount withdrawn in column IV(a). Amounts disbursed should equal corresponding amounts withdrawn since withdrawals should be made only for payments due within 1 week.

c. Unexpended Balance. On the same line, enter the difference between each set of related amounts withdrawn and disbursed shown in columns IV(a) and IV(b). Since only currently payable obligations are withdrawn, entries in column IV (c) should be minimal and should not be shown on two successive report months. When undisbursed withdrawals are returned to the Trust Fund, enter "0" in column IV (c).

5. Totals. For each monetary column, enter the sum of amounts reported in spaces provided at the foot of the column.

G. Checking the Report

• The total amount reported for each monetary column should equal the sum of the entries in the column.

• The total of column I cannot exceed the total amount of allocations made to the state.

• The total of column II cannot exceed the total of column IV(b).

• The total of column III(a) may exceed the combined totals of columns I and II since appropriations may be enacted in anticipation of funds becoming available.

• The total of column III(b) cannot exceed the total of column III(a).

• The total of column III(b) plus the total of column III(c) should equal the total of column III(a).

• The total of column IV(a) cannot exceed the total of column III(b).

• The total of column IV(b) cannot exceed the totals of columns III(b) and IV(a).

III-2-1

4/2007