INCUMBENT WORKER TRAINING GUIDELINES PROGRAM YEAR 2016
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1 INCUMBENT WORKER TRAINING GUIDELINES PROGRAM YEAR 2016 KEY POINTS Incumbent Worker Training (IWT) should improve the skills and competitiveness of the participant and increase the competitiveness of the employer. The purpose of the Incumbent Worker Training (IWT) Program is to support training that result in either: 1. Skill attainment for employees (training component # 1), or 2. Process improvement (training component #2) that contributes to the competitiveness and productivity of a business. Tennessee for-profit and (not-for-profit health care related only) businesses that have been in operation for a minimum of one year prior to the application date, employ at least five full-time employees, are current on all federal and state tax obligations, and are financially viable are eligible to apply. IWT funds are limited and are therefore awarded in a competitive-bid process. The maximum award is $25,000 per grant, with a funding limit of $50,000. Once a company has reached its funding limit with two or more grants in consecutive program years (beginning program year ), it must refrain from applying for another grant for one year. As an example: if company A is awarded a $20,000 grant in , and a $15,000 grant in 2014, and a $15,000 grant in 2015, it would have to skip the following year before being eligible to reapply. The IWT is cooperatively administered through the state s Local Workforce Development Areas (LWDAs) and the, Workforce Services Division. Applications are submitted from the companies directly to an LWDA that serves the county where the applicant resides. The LWDA may request additional information or establish supplemental provisions and requirements for the training projects. LWDAs will evaluate and score submitted applications. The LWDA will submit approved applications with a letter of support to the TDLWD, to be reviewed. The Workforce Services Department will make recommendations for final approval. Upon approval (signature) from the Commissioner, LWDA s will be advised and letters of approval will be sent to the LWDAs and the applicants. LWDAs will contract for training with an actual start date no earlier than January 1, 2016, and an end date of no later than December 31, TRAINING SERVICES All training must be completed by the last day of the specific program period. All programs need to have end dates that complete training no later than December 31, All training should have specific start and end dates. TRAINING Can be provided through Tennessee's public or private educational institutions, private training organizations, trainers employed by the business, or a combination of training providers. Can be conducted at the business's own facility, at the training provider's facility, or at a combination of sites. 1
2 REIMBURSEABLE TRAINING EXPENSES Instructors'/trainers' salaries - capped at actual amount or $50/hour if company trainers are used, whichever is less Curriculum Development, not to exceed 5% of total State obligation (defined as the time necessary for company officials to determine training needs or the actual development of curriculum) Textbooks/manuals Materials/supplies Tuition Expense (tuition defined as being provided by an institution regulated by the Tennessee Higher Education Commission) NON-REIMBURSEABLE COSTS Trainees' wages Purchases of capital equipment Purchase of any item or service that may possibly be used outside of the training project Travel expenses of trainers or trainees Assessment, testing, or certification fees Language training unless specific to terms of employment Advertisement or recruitment GRANT AWARDS Businesses approved for funds enter into a contract with their local workforce Development Area (LWDA contact) which commits the business to complete the training project as proposed in its application. Approved budget items are reimbursed upon presentation of adequate documentation of the training and evidence that the training expense incurred has been paid. Businesses will provide a 50% matching contribution to the training project equal to at least 50% of the requested grant amount. An example would be if the grant is for $25,000, the company would have to have a $12,500 match. Businesses will keep accurate records of the project's implementation process and certify that all information provided, for the purpose of requesting reimbursements and reporting training activity, is accurate and true. Businesses submit monthly or quarterly reimbursement requests, with required support documentation, to their local Workforce Development Area representative (LWDA contact). Any other contract provisions established by the LWDA. PROJECT COMPLETION All grant projects shall be performance based with specific measurable performance outcomes - including: the completion of the training project, number of employees trained, beginning and ending wages of trainees, date of birth, and customer satisfaction. Final payment for businesses receiving IWT grants will be withheld until the final report is submitted and all performance criteria specified in the grant have been achieved. Businesses shall provide sufficient documentation to the LWDA for identification of all employee participants for calculation of performance measures required by WIOA, and for any other outcomes deemed pertinent to the grant administrator. When an IWT grant award is made, it is for the completion of specific training components. If the company does not complete those training components by the end of the contract period, their final reimbursement will be pro-rated to bring their total reimbursement for the project in line with the actual training components completed. 2
3 APPLICATION INSTRUCTIONS Contact your Local Workforce Development Area (LWDA) for assistance with completion of and submitting of the application. DETACH and complete the attached IWT Program Application. Any information or documentation that cannot be supplied in the provided space should be identified by the relevant question number and attached to the back of the application form. NOTIFICATION OF APPROVAL MUST BE RECEIVED PRIOR TO THE START OF ANY TRAINING AND A CONTRACT MUST HAVE BEEN INITIATED BETWEEN THE LWDA AND THE APPLICANT. FREQUENTLY ASKED QUESTIONS WHAT IS THE PURPOSE OF THE TENNESSEE INCUMBENT WORKER TRAINING PROGRAM? The purpose of the Incumbent Workforce Training Program (IWT) is to support training that result in either: 1. Skill attainment for employees, or 2. Process improvement that contributes to the competitiveness and productivity of a business. WHAT IS AN INCUMBENT WORKER? An incumbent worker is: A paid, full-time employee of the applicant s business. At least 18 years of age; and A citizen of the United States or a non-citizen whose status permits employment in the United States. For the purpose of these funds, anyone to be trained must be working at a facility located in Tennessee. WHAT IS PROCESS IMPROVEMENT? Process improvement refers to training that contributes to the competitiveness and productivity of a business, such as, but not limited to, Lean Manufacturing, ISO Certifications, and Six Sigma. WHAT IS SKILL ATTAINMENT? Skill attainment refers to incumbent worker training that develops skills that directly benefit the workers receiving the training and that contributes to the company s competitiveness and productivity Participants qualifying for a job with changing skill requirements, or for higher paying jobs with their employer. Participants obtaining the skills and knowledge to perform work that is at a higher level than their current positions Participants obtaining an industry-recognized certification or credential, or training that provides a significant step towards achieving such credentials that increase the worker s overall employability 3
4 WHO IS ELIGIBLE TO APPLY? Tennessee for-profit and (not-for-profit, health care related only) businesses that have been in operation for a minimum of one year prior to the application date, employ at least five full-time employees, are current on all federal and state tax obligations, and are financially viable are eligible to apply. WHO IS NOT ELIGIBLE TO APPLY? A business currently receiving training funds, either directly or indirectly, from Tennessee state government unless those training funds do not duplicate the training efforts outlined in the project application. A business that has received funds either directly or indirectly from Tennessee State Government under any previous training initiative, and the terms of the agreement for training have not been met. A training provider An LWDA or its administrative entity A government entity A company that has already met its limit ($50,000 for grants awarded in consecutive years from PY12-13). A third party organization is not eligible to apply as a grant recipient. WHAT KIND OF TRAINING MAY BE FUNDED BY THE IWT? Occupational skills-upgrade training designed to meet the special requirements of a business and conducted with the employers intention to continue to retain all trained individuals upon their successful completion of the training. Training in strategies to improve efficiency of business operations An applicant must demonstrate the effect of the proposed training on business operations and must identify the skills upgrades to be acquired by the employees. Funds awarded for a project will be expended on training activities that take place only in Tennessee. Costs associated with conferences will not be allowed. WHAT IS THE MAXIMUM AMOUNT FOR WHICH A BUSINESS CAN APPLY? IWT funds are limited, and are therefore awarded in a competitive bid process. The maximum award is $25,000 per grant with a funding limit of $50,000. Once a company has reached its funding limit with two or more grants in consecutive program years (beginning program year ), it must refrain for one year before applying for another grant. As an example: if company A is awarded a $20,000 grant in , and a $15,000 grant in 2014, and a $15,000 grant in 2015, it would have to skip the following year before being able to reapply. After skipping a year, a new $50,000 maximum will apply. If a company is awarded an Incumbent Worker Training Grant but is unable to use any of the funds and forfeits the full grant amount, then that grant amount will not count against the total limit for that company. IS THERE AN EMPLOYER MATCH REQUIRED TO RECEIVE AN IWT GRANT? Yes. The employer must match at least 50% of the IWT assistance request to receive an IWT grant award. An example of an employer contribution is; if the grant award is $25,000, the company must match an additional 50% ($12,500 or in-kind). Refer to the Training Program Budget page of the IWT application. 4
5 WHAT OUTCOMES ARE EXPECTED FROM THE IWT GRANT? When workers lack needed training and businesses experience skill gaps, the company s ability to compete, expand, and retain workers can be compromised. Tennessee s IWT, funded by the federal Workforce Investment Opportunities Act (WIOA), addresses such needs. The specific outcomes of training through the IWT will provide skill-attainment opportunities for employees, or contribute to the competitiveness and productivity of the company. HOW IS THE IWT ADMINISTERED? IWT is cooperatively administered through the state s Local Workforce Development Area (LWDA) and the Tennessee Department of Labor and Workforce Development,. Within the framework established through the IWT program and the Workforce Investment Opportunities Act (WIOA), an LWDA may request additional information or establish supplemental provisions and requirements for the training projects. HOW DOES A BUSINESS SUBMIT AN APPLICATION? The business must contact the Local Workforce Development Area (LWDA), (LWDA contact) that administers the Incumbent Worker Training (IWT) in its geographical area. This contact allows the business and the LWDA an opportunity to review the guidelines and eligibility requirements, highlight restrictions, discuss training priorities, understand the cost reimbursement procedures and the application time schedule, and to review other procedures and expectations. Program applications for Tennessee IWT are available on the Tennessee Department of Labor web-site: LWDA contact).these documents are also available from LWDA offices. IS IT REQUIRED THAT THE APPLICANT USE THE APPLICATION PROVIDED? Yes. The application is provided in a Word document. All information is to be provided within the application. The space will expand to accommodate the information. Please do not include the trainer s resumes or other excess information. Also, course descriptions and objectives should be summarized within the application. Incomplete applications will not be considered for review. WHAT TECHNICAL ASSISTANCE IS AVAILABLE TO APPLICANT S? The LWDA staff is available to provide technical assistance throughout the process. WHAT CRITERIA ARE USED TO REVIEW AND FUND APPLICATIONS? The application must be reviewed by the Local Workforce Development Area (LWDA) to ensure that: The application is complete, with all information supplied The proposed training is consistent with local economic and workforce priorities The training is restricted to skill attainment activities or process-improvement training. The application clearly describes the training to be delivered, states the training objectives, and describes how the funds will be used to meet the objectives Any additional criteria, required by the LWDA, have been submitted. The LWDA then scores the applications and submits them to the with a letter of recommendation for final review. The number of awards approved per round is based on funding availability as determined by the State Workforce Board. 5
6 MAY A THIRD PARTY APPLY FOR TRAINING ON BEHALF OF THE BUSINESS? No. An individual or organization (third party) may assist a business in the application; however, the third party organization may not be compensated with grant funds. HOW WILL I KNOW IF MY IWT APPLICATION IS APPROVED? The Local Workforce Development Area (LWDA) will notify the business of action taken on its application. The LWDA will begin the process of developing a contract between it and the business. The contract will set forth all processes and expectations for administering, implementing, and completing the training. Each project will be monitored and evaluated by the LWDA, with outcomes reported to the. HOW LONG DOES A BUSINESS HAVE TO CONDUCT THE TRAINING? Training must be completed by December 31st of the program year during which the grant was awarded. LWDAs may require individual start and end dates for each training program activity. MAY THE CONTRACT BE EXTENDED? No. Contracts cannot be extended past December 31st of the contract (program) year. WHAT INFORMATION IS A BUSINESS REQUIRED TO SUPPLY TO THE LWDA ABOUT THE EMPLOYEES TO BE TRAINED? The LWDA will discuss with the business the employee information required for the trainees. Federal reporting requirements mandate that funded businesses provide the following data for each training participant: Complete Name and Contact Information Gender Date of Birth Citizenship (Right to Work Status) Selective Service Compliance Person with Disability Ethnicity and Race Social Security Number (as a condition of reimbursement) ARE ANY REPORTING REQUIREMENTS EXPECTED OF THE BUSINESS? Yes. The Local Workforce Development Area (LWDA) will advise and discuss the reporting requirements for the grant award; these are to include content, documentation to verify 50% match, time frame, and other matters. A final report on the training is due no later than forty-five (45) days from the end of the training. This report will be forwarded by the LWDA to the. 6
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