Policy Manual National Emergency Grants
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1 MEMO: AP DATE: May 15, 2007 TO: FROM: SUBJECT: WIB Directors WIB Chairpersons Grant Recipients Carl Buzzelli WIA Program Manager Policy Manual National Emergency Grants Purpose: The purpose of this policy is to detail the steps taken if a National Emergency Grant (NEG) is being considered when there are large plant layoffs or company closures. It also addresses the steps taken to develop the proposal, submit a written plan, contract for the funding and modify the grant if necessary. Background: In the past, when a state was requesting funding for large layoffs or closures from USDOL, multiple copies of detailed written plans were submitted. Now, all requests for NEG funding are submitted electronically by the state. Although the data currently required is similar to the original method, the details and specific information needed is different. Significantly less information is required. Policy: National Emergency Grants (NEGs) are discretionary awards by the Secretary of Labor. They are intended to complement resources and service capacity at the state and local area by providing supplemental funding for workforce development, employment services and other adjustment assistance for dislocated workers. The US Department of Labor, ETA, published Workforce Investment Act: National Emergency Grants Application Procedures in the April 27, 2004 Federal Register. This issuance updated and included information on policies and procedures regarding NEGs. Some of the key points in this issuance are: For regular projects, applications should be submitted as soon as possible (no more than 120 days from the event) following official notification or occurrence of a dislocation event.
2 Policy Manual National Emergency Grants May 15, 2007 Page 2 Collaboration with economic development agencies is required. This supports current and future economic growth in the community. To request funding, the state must have expended 70% of the total available formula, rapid response and statewide activities funds by the end of the program year. Projects laying off and/or serving less than fifty workers will not be funded. Planned project durations should not exceed 24 months. The ratio of planned participants to affected workers must be reasonable in light of prior experience with NEG projects and with the results of the rapid response/ early intervention activities. Per-participant expenditure levels and types and costs of supportive services must be consistent with the formula program experience in the proposed project area. For regular projects, the planned per participant cost must be within a reasonable range of the actual end-of-year average cost per participant for formula-funded dislocated worker activities during the previous program year. Receipt of supportive services in the grant request must be consistent with the established policies and procedures of the local Board. Participants must be enrolled in the project within 180 days of grant award. Participant training must be completed by the end of the project. Applications for NEG funds can be made at any time. A need for NEG funds is usually triggered by a plant closing or a mass layoff of significant size. Initially, information must be gathered on the skills and needs of the workers, the local economic environment and available funds currently in the state. Frequently, workers are surveyed to gather demographic information and their need for training and job development services. Other considerations are union involvement, reasons for layoff, Department of Economic Development (DECD) involvement with the company, and eligibility for trade benefits. Rapid Response, WIA Administration staff, and representatives from the local Workforce Investment Board jointly make a decision, based on the information gathered, as to whether an application for a NEG is appropriate. Ideally, by the time the request for funds is made, the majority of the workers have been assessed. The electronic NEG includes an overview and synopsis of the project, information on the employer and service provider and a planning matrix, which includes the implementation plan and cumulative expenditures by quarter. It usually takes two to four months to hear from USDOL if funds have been awarded. The total award is usually granted. The first increment of funding is usually about 30% of the total award.
3 Policy Manual National Emergency Grants May 15, 2007 Page 3 To access the additional funds, it s necessary to request those funds and justify the need for them. As a condition of the award, the project operator must develop a more complete project operating plan. This plan must be completed and transmitted to the USDOL Regional Office within ninety days of the grant award. There will be a minimum of two on-site reviews for a NEG. The purpose of the reviews is to verify core compliance factors such as participant eligibility and adequate financial management, to assess the effectiveness of the participant policies and processes in achieving project performance goals, and to evaluate the need for funds to complete the project. A report on actual project performance and expenditures must be submitted quarterly. Attached is a copy of the National Emergency Grant Policy Manual. This document explains in greater detail what needs to be done when a Workforce Investment Board and the state, are considering a request for a national emergency grant. It includes all the aspects and requirements involved in submitting a request for emergency grant funding to the federal government. Attachment
4 NATIONAL EMERGENCY GRANTS POLICY MANUAL CT Dept of Labor WIA Administration May, 2007
5 CT Department of Labor WIA Administration Policy Manual - National Emergency Grants What Are National Emergency Grants? National Emergency Grants (NEGs) are discretionary awards by the Secretary of Labor and are intended to complement resources and service capacity at the State and local area by providing supplemental funding for workforce development and employment services and other adjustment assistance for dislocated workers. Guidelines to Apply for a NEG The US Department of Labor, ETA, published Workforce Investment Act: National Emergency Grants Application Procedures in the April 27, 2004 Federal Register. This issuance updated and included information on policies and procedures regarding NEGs. Some of the key points in this issuance are: For regular projects, applications should be submitted as soon as possible following official notification or occurrence of an eligible dislocation event. Applications must be submitted within 120 days of the dislocation event (preferably sooner) or the date on which the workers included in the application become eligible for services. Collaboration, especially with economic development agencies, is required. The development of a NEG is best done in conjunction with economic development entities in order to support current and future economic growth in a community. NEGs are a major tool in building a demand-driven workforce system that integrates workforce investment activities with economic development activities. Boards and the state must maintain adequate rates of expenditures of available formula funds on a program year basis. The state must have expended 70% of the total available formula, Rapid Response and statewide activities funds by the end of the program year. This will be a major criterion in evaluating the need for NEG funding. In general, projects laying off and/or serving less than fifty workers will not be funded. Generally, planned project durations should not exceed 24 months. The ratio of planned participants to affected workers must be reasonable in light of prior experience with NEG projects and with the results of the Rapid Response/ early intervention activities. For regular projects the planned per participant cost will be expected to be within a reasonable range of the actual end-of-year average cost per participant for formula-funded dislocated worker activities in the planned service area during the most recent completed Program Year. 1
6 Policies regarding receipt of supportive services and needs-related payments generally must be consistent with the established policies and procedures of the local board(s) in the area in which the project is to operate. All planned participants must be enrolled in the project within 180 days of grant award, i.e. the implementation schedule shows all enrollments by the end of the first six months of project operation or an explanation as to why this is not feasible. All enrollments in training must be set up so that training can be completed within the project performance period. NEG award funds may be reprogrammed in the year of appropriation, or before the U.S. Department of Labor s authority to obligate funds has expired. Generally, NEG funds awarded in the last two months of a program year will not qualify for any reprogramming actions. Although the e-application is sufficient for USDOL to make initial funding decisions, a more detailed operating plan needs to be developed and submitted within ninety days of the grant award. Applications for NEG funds can be made at any time. First Steps in Considering a NEG A need for National Emergency Grant funds is usually triggered by a plant closing or a mass layoff of significant size. Initial questions about the process of applying for a National Emergency Grant frequently come from the local Workforce Investment Board. The possibility of applying for an emergency grant may also be raised by the CTDOL Rapid Response Team (RRT). The RRT members are frequently the first people to be in contact with companies that are experiencing large layoffs or closings. It is frequently asked if there are clear guidelines regarding when the state will request a National Emergency Grant. In actuality, each case is decided on its own merits. In general, it needs to be a layoff of significant size - usually hundreds of people. The people being laid off must have skills and experience that are not easily transferable in today s marketplace. There may also be a number of other barriers to employment such as English not being the primary language, transportation etc. It also depends on the specific needs and wants (i.e. to get another job immediately) of the people being laid off. Sometimes there are emergency situations where large numbers of people are laid off with no notice and no financial support. It is possible in that situation to ask for initial emergency funding from USDOL and complete a full proposal when there is more information available about the population being laid off. There is no guarantee that, if an emergency request is submitted, it will be approved by USDOL any sooner than a regular proposal. At times, companies prefer to not work with the state when there are large layoffs. In order to request emergency funding there must be detailed information on the dislocated workers such as former wages, job titles, age etc. When it is not possible to get that key 2
7 information from the company, there is no way to apply for funding through a discretionary grant. A number of areas (i.e. funding availability, types and numbers of jobs available, needs and skills of the workers) need to be explored in the process of deciding whether or not it is appropriate to request a National Emergency Grant. The first area to look at is funding. Are there sufficient current available funds in the state and at the local level to serve the large number of individuals being laid off? It is USDOL s position that when there s funding available in the state to serve the workers to be laid off there would be no need for additional funds. An analysis of in-house and local fund availability would need to be developed. Specific information about funds available at the local level is obtained both in-house from Business Management and from the local board finance staff. In general, there is not enough funding in the formula WIA funds to meet the need for retraining on the local level when there is a very large layoff or closing. The next step would be to look at the local labor market conditions, in particular the number and kind of jobs currently available that would match the skills of the workers being laid off. It s necessary to assess the local environment, including future economic growth, job openings etc. Information about local regions is available on the CTDOL website under labor market information. The Board is likely to have additional specific labor market information that is known or has been gathered at the local level. The kind of questions that need to be answered to evaluate the need for the grant proposal are: Are there jobs available in the geographic area that would be able to use the skills of the laid off workers? Do the workers have the skills/ education needed to get a job? Are the workers willing to travel to get employment? Are there additional barriers to employment caused by limited education and/or limited English skills? Extensive information needs to be gathered on the demographics of the workers. The company will most likely be able to provide some information about the workers, such as names, job titles, wages etc. The Rapid Response Team, which is already working with the employer, frequently accesses much of this information through the company s Human Resources Department, either by phone or at a Rapid Response meeting. Information they gather includes but is not limited to company and union contacts, type of business and reason for layoff, prospect for referral to DECD, shared work, TAA or NAFTA, timing of layoffs, number and types of workers to be affected, age distribution, and information on dismissal payments, retirement and vacation pay. (Addendum #1 Fact Sheet - the form used to gather the data) When a discretionary grant is being considered, it is recommended that the following information be obtained from the company: 3
8 Name(s) and locations of the company from which the workers will be dislocated Type of business or industry involved Reason for layoff or closing Expected layoff dates and numbers of workers affected Names of the cities and states in which affected workers reside Numbers affected by specific occupation Average wage for each occupation Number of workers expected to transfer with, or retire from, the company Ages and educational levels of affected workers Job tenure Extent of educational and/or outplacement assistance provided by the company It s also important to survey the workers to gather more extensive information about their backgrounds, explore their ideas for their future, and ask what they think their needs might be to obtain employment. The survey which is used requests information on age, education, primary language, future plans, interest in training and transportation needs. This form can be customized, if needed, to address specific situations. The survey form is scanned at the CTDOL and the results used in writing the proposal. (Addendum #2 Survey Form) All of this information is necessary to get a clear idea of the needs of the workers. Ideally, workers could be met with to begin the dialogue about where they re at in their transition process and to begin to assess their needs relative to job search and retraining. As much information as possible should be obtained, to see if a grant is really needed or if the workers needs could be met without additional funding. Once all this information is gathered a final decision is made as to whether or not to apply for a grant. Putting the Request Together As of July 1, 2004, all requests for NEG funding for plant closings and mass layoffs must be filed electronically with USDOL. At this time a written proposal for the project to send to USDOL is not needed. The electronic submission must be done by the state. Basically, working together, the state and local Board gather all the information needed to submit the request. When developing a NEG one of the first things that needs to be done is to determine the number of people that will actually be laid off and the number that will be served by the grant. The number to be served is the target group. To determine actual layoffs, the possible recalls, transfers and retirements must be subtracted from the total layoffs. In determining the number to serve, it s also important to check the number of part-time workers and temporary employees (if there were any) and decide whether or not they will be part of the grant. Once the actual number of layoffs is clear, there is a rough formula that is used to estimate the number who will need services. Essentially, the expectation is that 30% to 4
9 35% of the total number laid off will probably seek services and of that number approximately 25% to 30% will be interested in/ need retraining. This formula is flexible and can be adjusted depending on the specific circumstances of the layoff. Historically, even using that formula, there tend to be fewer people interested in services than had been planned. USDOL expects that by the time the proposal is written many of the workers would already have been assessed; the numbers to be served is based on that basic intake information. Where variations in program (core, intensive and/or training), and/or policies (e.g. training caps, duration of training) may be appropriate to respond to the needs of special populations (e.g. limited English speaking) who comprise the target group, these will have to be identified, explained and justified in the application narrative. The next step is to estimate the cost per participant needed to serve the laid off workers. The Federal Register issuance states that the planned per participant cost will be expected to be within a reasonable range of the actual end-of-year average cost per participant for formula-funded dislocated worker activities in the planned service area during the most recent completed Program Year. The actual formula program cost per participant should equal the total expenditures during the Program Year (PY) divided by the total number of registrants reported for the PY. Based on the demographics of the laid off workers, supportive services may be considered. Policies regarding receipt of supportive services and needs-related payments generally must be consistent with the established policies and procedures of the local board(s) in the area in which the project is to operate. If a local area does not offer a specific supportive service (e.g. needs-related payments) in their area it can t be offered to workers through the NEG. Format of the Request The electronic NEG is divided into five sections; specific information is needed for each section. In some sections there is space for short narratives to explain the reasoning behind certain requests. Specifically, a narrative is needed in the following situations: No Rapid Response Layoff Date more than 120 days Participation Rate more than 50% Number of Participants less than 50 Entered Employment Rate less than State Goal Wage Replacement less than State Goal High Cost per Participant Needs Related Payments Provided Indirect Costs included Grantee or Project Operator-Level Administrative Costs Attached is a chart which details the information required in the narrative in the above situations. (Addendum #3 Narrative Chart) 5
10 The first section of the electronic submission is the overview of the project. The information needed for this section includes the geographic areas affected by the project, the funding being requested and the beginning and end dates of the project. The second section is a synopsis of the project. It includes a short narrative on the services to be provided and the dislocation event. This section includes the planned number of participants, entered employment rate (eer) and the planned earnings rate (per). The eer and the per are the performance levels negotiated between CTDOL and USDOL. In addition, this section includes the planned cost per participant and the actual cost per participant in the prior Program Year (PY). The planned cost per participant for the NEG should be within the range of the cost per participant for dislocated workers in the formula funds. (The actual formula program cost per participant should equal the total expenditures during the Program Year (PY) divided by the total number of registrants reported for the PY.) The next section is focused on the employer experiencing the layoffs. Needed data includes information on the company (name, address), date of layoff notification, layoff date(s) and affected workers by date, dates of rapid response and early intervention sessions, including the number of workers contacted and surveys completed, TAA information and labor union representation. The following section lists contact information on the project operator. The last section is the Planning Matrix. This form breaks out the implementation schedule and the cumulative expenditures by quarter. Numbers are needed for planned participants, participants in core and intensive services, training, receiving supported services, entering employment and exits. The project operator needs to provide planned expenditures for core and intensive services, training, supportive services and administration. Things to be considered in developing the implementation plan and budget include: Staffing charges can be no more than 30% to 35% of the total request for funding. NEG funds will not be provided for projected or anticipated layoffs. In general, a limit of ten percent of the total costs will apply to administration for all NEG projects. USDOL stresses that there should be multiple funding sources, besides the NEG funds, to support the target population A very detailed justification is necessary regarding how many workers are to be served and how that determination was reached. 6
11 Additional Considerations There may be instances in which a project will operate in multiple local workforce areas covering the same company dislocation. The projects should be designed and managed to operate under a consistent set of service policies and procedures that are agreed to by all the local boards involved. If there is an intention of setting up a separate transition center there must be a detailed description of how services will be integrated with One-Stop Center services. Coordination of all funding sources (Pell grant, tuition reimbursement) for services must be demonstrated, along with assurances that discretionary funds will be the last funds to be used for training. Federal Processing of Request Once the proposal is received at USDOL, the office staff often reviews it right away. If there are any technical problems they will request corrections, frequently through the regional office. There is no certain timeline as to when the state will hear from USDOL regarding grant funding. To date, all proposals that have been submitted have been awarded. Frequently, the local areas that have initiated the request, work with the state congressional delegation to move the processing of the proposal along at USDOL. It takes an average of two to four months for an announcement to be made. Announcement of the grant award is frequently made through the Governor s office or the local office of a member of the congressional delegation. Grants that have been received in the last eighteen months have usually been for the amount of funds requested but the full amount is not available. The amount received is the first increment of the award, frequently about one third of the request. To access the additional funds it s necessary to request a modification from USDOL and justify the need. Announcement of the award does not authorize project spending. The state must wait for the Project Grant Award Package. This package includes the NEG award letter, the NOO (Notice of Obligation) and the conditions of approval from USDOL. It can take a few weeks from the award announcement until the NOO is received. It is sometimes possible to work with the USDOL staff to receive the NOO by fax. Given the timing of the layoffs and the notification of award, significant time may elapse. Once the NOO is received, funds may be used for the grant. But, there is still frequently significant time between receipt of the NOO and the CTDOL response to the Award letter and the signing of a contract with the local board, or service provider. In this situation, if the provider needs some up-front funds, CTDOL may send an authorization letter to the provider of a maximum of 20% of the incremental award (minus the CTDOL administration portion). (Addendum #4 Funding Authorization Letter) 7
12 Contract Package Once the NEG proposal has been approved by USDOL and the agency s response to the award letter has been sent, a contract must be drawn up between the Board (or other entity administering the grant) and the CTDOL. A contract package should be ed or sent to the Board for completion. It will contain: Cover Document Contract Instructions Contract Face Page Directions Regarding Certification of Signatory Certification Signature Sheet(s) Affadavits General and Specific Assurances Three copies of the contract with original signatures is returned to CTDOL. It is reviewed by staff, signed by Business Management and the Commissioner, and then sent to the Attorney General s office for signature. Post-Grant Award Requirements - Project Operating Plan As a condition of the grant award, recipients will be required to develop a more complete project operating plan, including executed project operator agreements, line item budgets, staffing plans and participation registration and assessment information. The operating plan must be completed and transmitted to the Regional Office within 90 calendar days after the grant award. The Operating Plan must include the following elements: Updated information since submission of the application The layoff schedules (i.e. dates and numbers of affected workers) for all approved target group employers Status and results of all Rapid Response activities, as applicable Copies of signed agreements with each proposed project operator A completed Planning Form (ETA 9103) A line item budget specifying costs for staff salaries and fringe benefits, staffs travel, supportive services, needs-related payments, and administration of NRPs. Costs must be delineated between administrative and program costs A staffing plan that describes proposed staffing by job title, full-time equivalent staff to be assigned, salary and benefit rates for each staff position Listing of all sites and organizations that will provide services to participants, including a description of service coordination arrangements with One-Stop Center operators and partners Summary profile of the reemployment barriers that have been identified among the target group of participants and description of the implications of the profile on the project service design Description of the job placement strategy for the project, including services to be provided to both participants and employers 8
13 Project Oversight There will be a minimum of two on-site reviews for a NEG. The first will be within ninety (90) days of the grant start-up and is generally done by state staff. The second one, between six months of grant start-up and the midpoint of the grant, is completed by USDOL staff. The purpose of this review will be to verify core compliance factors such as participant eligibility and adequate financial management, assess the effectiveness of the participant policies and processes in achieving project performance goals, and evaluate the need for funds to complete the project. Each grant recipient will be required to submit a report on actual performance to date at the end of each quarter. The report will include actual figures for program performance and line item expenditures, matching the Planning Form submitted with the initial request for funding. Grant Modifications Grant modifications will be required in the following circumstances: To include additional layoffs that are within the scope of the approved grant award To change the project performance period To add or change project operators To change contact individuals or information for the grantee or any project operator To change any of the project design parameters that results in an increase of more than 10% in the approved cost per participant To increase the amount of approved funding for supportive services, Needs Related Payments (NRPs) and/or administration of NRPs To lower the end-of-project performance goals To request an additional funding increment within the total funding approved by the Secretary. Requests under the first four items, which do not require a change in the amount of the approved grant award, may be approved by the Regional Office. Representatives of the Regional Board and the State work together to develop the grant modification. The state submits the modification request to USDOL electronically. A:NEGManual1.doc/wia4red 9
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22 Date Executive Director Regional Board. Street City, CT 06 Dear Mr./Ms. : This letter serves to authorize the Board to expend funds under the U.S. Department of Labor, Employment and Training Administration, Grant name, Grant Number. The CTDOL has received correspondence, dated, stating that the funding has been allocated to Connecticut. This letter, permitting authorization to expend funds, is provided pending the signing of the formal modification to the grant award contract. The Board shall submit this grant contract/ modification to the CTDOL. This authorization carries the following limitations: 1. The amount authorized for expenditure, pending finalization of the grant award modified contract may not exceed $100,000. Funds must be expended according to the budget submitted as soon as possible. 2. The final grant award agreement will supersede this letter of authorization. 3. The Board bears total responsibility for any funds expended prior to the grant award modified contract finalization. 4. Funds can be drawn down against this authorization with a properly signed invoice detailing utilization of expenditures. Staff will review your submitted grant award modification/ Contract. Notification will be sent if additional information is required. I look forward to our continued collaboration on this project. Sincerely, A:authltdoc/wia5chartreuse Commissioner CT Dept. of Labor
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