Welcome while you are sitting there

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1 Welcome while you are sitting there Pull out your smart phone Logon to kahoot.it Enter Game PIN

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3 IT S MY MONEY AND I NEED IT NOW: Navigating Infrastructure Costs and Resource Sharing Brandon S. Butler, Esq. Deputy Assistant Secretary Division of Workforce Development and Adult Learning Maryland Department of Labor, Licensing and Regulation

4 My Objectives (1) Take the fear out of infrastructure costs (2) Make you think about your share of the resource sharing agreement (3) Make you laugh hopefully (4) Make Kirk Murray regret agreeing to let me speak on this!

5 Fear of the Unknown The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown - H.P. Lovecraft

6 How to Overcome it? (1) Understand your fear (2) Learn about the real risk (3) Power of visualization (4) Take baby steps (5) Use humor to fight fear

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8 WIOA WIOA WIOA WIOA WIOA WIOA WIOA WIOA WIOA WIO IOA WIOA WIOA WIOA WIOA WIOAWIOA WIOAWIOA WIOA

9 Round 1 Infrastructure Costs 35 Kirk Murray 1 MOUs 28 Local Plans 20 No Guidance 12 Win Lose Cheer Boo Silence

10 Round 2 Where s your checkbook 31 We ve never done that before 9 I don t like your customers 25 That s not how we used to do it 3 There goes our performance 18 You can t make me 14 Win Lose Cheer Boo Silence

11 Round 3 Collaborate 40 Together 7 Partnership 17 Holistic 5 System 15 Align 4 Teamwork 12 Win Lose Cheer Boo Silence

12 We ve come a long way April 1, 2016 Plan submission April 20, 2016 Maryland releases guidance for local and regional plans July 1, 2016 All MOUs are extended to Dec. 31, 2016 Sept 28, 2016 Local performance negotiations completed for Title I and Title III Aug 31, 2016 Local plans submitted to the State Dec 7, 2016 GWDB conditionally approves Local Plan Dec 14, 2016 Letters sent to Local Areas Dec 31, 2016 MOUs due Jan 17, 2017 Adult Education Competition March 30, 2017 Regional Planning Submitted

13 We ve got a long way to go Revisions of Local Plans One-Stop Operator Procurement RSAs

14 The Most Important Question Kirk Murray Has Ever Asked! When can we get through all of this compliance stuff and get to innovating? -Loosely quoted from the Great Kirk Murray, President and Supreme Overlord of the Maryland Workforce Association

15 The Most Important Question Kirk Murray Has Ever Asked! When can we get through all of this compliance stuff and get to innovating? -Loosely quoted from the Great Kirk Murray, President and Supreme Overlord of the Maryland Workforce Association You know, man, Kirk stole this from me! -Dan McDermott

16 Or put another way

17 Objectives Resource Sharing Agreements and Infrastructure Costs What is a Resource Sharing Agreement? What are Infrastructure Costs? What does WIOA say? What do the regulations say? What does MD and USDOL guidance say? Practical tips

18 Maryland s Guidance Jointly issued guidance To ALL of you!

19 RECENT DOL Guidance MD s guidance released September 2016 Very, very, very, very similar to the sample released with the State Policy

20 So, this begs the question

21 What is a Resource Sharing Agreement? Also referred to as the Infrastructure Funding Agreement in USDOL guidance Establishes the terms and conditions on how services and operating costs of the local workforce system will be funded Local Plan Memorandum of Understanding Resource Sharing Agreement

22 What is a Resource Sharing Agreement? Also referred to as the Infrastructure Funding Agreement in USDOL guidance Establishes the terms and condition on how services and operating costs of the local workforce system will be funded Memorandum of Understanding Local Plan Resource Sharing Agreement

23 What is a Resource Sharing Agreement? The goal of the RSA is to develop a funding mechanism that: Maintains the local workforce development system Reduces duplication by improving program effectiveness Reduces overhead by streamlining and sharing financial, procurement, and facility costs; and Ensures that costs are appropriately shared by the AJC partners by determining fair contributions

24 What is a Resource Sharing Agreement? Resource Sharing Agreement Infrastructure Costs Operational Costs (Shared Costs and Staff Resources)

25 What is a Resource Sharing Agreement? In Maryland, MOUs expired on December 31, 2016 The State permitted all Local Areas to extend current RSAs until June 30, 2017 The RSA is a part of the negotiated MOU Per Maryland s Policy Issuance Each local are is expected to use a separate RSA template for each American Job Center (both comprehensive and affiliate AJC in a local area) within the local workforce system. In addition, a separate RSA template should be completed to capture information on costs that are important to the local workforce system, but are not tied to a physical AJC location. The total of these separate completed RSA templates should then be bundled into one master summary document to show total shared costs related to the local workforce system.

26 Partners to the RSA

27 Partners to the RSA WIOA Sec. 121(b) and 20 CFR map out required partners Additional Partners may be added with approval of local board and chief elected official Entities serving as point of contact 20 CFR For most programs, the grant recipient, administrative entity or organization responsible for administering funds at the local area is the negotiator. For programs that do not include local admin entities, it is the State agency. For Title II, it is the entity responsible for administering or supervising policy for adult education and literacy services in the State. For Title III (VR), it is the State agency (DORS) Job Corps Post-Secondary recipient of Carl Perkins Funds

28 Partner Responsibilities WIOA Sec. 121(b)(1) and 20 CFR Required Partners Must: (1) Provide access (2) Use a portion of the funds available for the program to provide applicable career services and pay infrastructure (3) Enter into a local MOU with local board (4) Participate in operation of the local system (5) Provide representation on the State and Local Boards

29 It s Quiz Time

30 Who is the Negotiating Partner? For Adult Education (A) The Community Colleges (B) Office of Adult Education and Literacy Services at the Department of Labor, Licensing and Regulation (C) Bruce England

31 Who is the Negotiating Partner? For Adult Education (A) The Community Colleges (B) Office of Adult Education and Literacy Services at the Department of Labor, Licensing and Regulation (C) Bruce England As the sole entity or agency in the State or outlying area responsible for administering or supervising policy for adult education and literacy activities in the State

32 Who is the Negotiating Partner? For Vocational Rehabilitation (A) Division of Rehabilitation Services of Md. State Department of Education (B) Maryland Department of Disabilities (C) Bruce England

33 Who is the Negotiating Partner? For Vocational Rehabilitation (A) Division of Rehabilitation Services of Md. State Department of Education (B) Maryland Department of Disabilities (C) Bruce England As the designated State agency, DORS is the agency

34 What is a Resource Sharing Agreement? Resource Sharing Agreement Infrastructure Costs Operational Costs (Shared Costs and Staff Resources)

35 Operational Costs Shared services costs Career Services (20 CFR and WIOA Sec. 134(c)(2)) Shared services that are authorized for and may be commonly provided by partner program Initial intake Assessment of needs Evaluation of basic skills Referrals to other American Job Center Partners Business Services EXAMPLE: Costs of staffing of the welcome desk These are costs for services outlined in the WIOA MOU

36 What is a Resource Sharing Agreement? Resource Sharing Agreement Infrastructure Costs Operational Costs (Shared Costs and Staff Resources)

37 Infrastructure Costs WIOA Sec. 121(b)(1)(A)(ii) Use a portion of funds available for the program and activities to maintain the one-stop delivery system, including payment of the infrastructure costs of one-stop centers

38 Infrastructure Costs WIOA Sec. 121(h), 20 CFR to 20 CFR Non-personnel costs necessary for the operation of the American Job Center, including (but not limited to): Applicable facility costs (i.e., rent) Costs of utilities and maintenance Equipment costs (including physical modifications to the center for access, assessment-related products, and assistive technology for individuals with disabilities) Technology to facilitate access to the AJC Common identifier costs (i.e., signage for the AJC).

39 Getting Personnel (get it?) Non-Personnel Costs Assistive Technology Assessment Materials (i.e., Casas or Tabe testing materials) The welcome desk and computers used Personnel Costs Staff time in assisting individuals with disabilities using the assistive technology Staff administering the assessment Greeter or staff manning the desk

40 Infrastructure Costs The requirements that govern infrastructure costs apply to each onestop center in the local delivery system, whether the center is a comprehensive, affiliate, or specialized one-stop center. All one-stop partners, whether they are required partners or additional partners except as discussed above concerning Native American programs must contribute to the infrastructure cost funding of the one-stop centers based on proportionate use and relative benefits received. The required one-stop partners must provide access to their programs in the comprehensive one-stop centers and contribute to the infrastructure costs of those centers. Only those one-stop partners that participate in the affiliate one-stop centers are required to contribute to the infrastructure costs for those centers. As with MOUs, the Local WDB may negotiate an umbrella IFA or individual IFAs for one or more of its one-stop centers.

41 Cost Methodology 20 CFR (c) These payments must be in accordance with this subpart; Federal cost principles, which require that all costs must be allowable, reasonable, necessary, and allocable to the program; and all other applicable legal requirements.

42 Cost Methodology All partner contributions must be based on proportionate use and relative benefit received, and consistent with Federal cost principles contained in the Uniform Guidance at 2 CFR part 200 AND the partner program s federal authorizing statute.

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44 Fuzzy Terms Proportionate Use Relative Benefit Received

45 Not Fuzzy Math

46 Allowable Costs 2 CFR Factors affecting allowability of costs. Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period. See also Cost sharing or matching paragraph (b). (g) Be adequately documented. See also Statutory and national policy requirements through Period of performance of this part.

47 Allowable Costs

48 Allowable Costs Title II and postsecondary Perkins Funds recipients cannot use program funds for infrastructure

49 Reasonable Costs 2 CFR Reasonable costs. A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is particularly important when the non-federal entity is predominantly federally-funded. In determining reasonableness of a given cost, consideration must be given to: (a) Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the non-federal entity or the proper and efficient performance of the Federal award. (b) The restraints or requirements imposed by such factors as: sound business practices; arm's-length bargaining; Federal, state, local, tribal, and other laws and regulations; and terms and conditions of the Federal award. (c) Market prices for comparable goods or services for the geographic area. (d) Whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the non-federal entity, its employees, where applicable its students or membership, the public at large, and the Federal Government. (e) Whether the non-federal entity significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably increase the Federal award's cost.

50 Reasonable Costs

51 Allocable Costs 2 CFR Allocable costs. (a) A cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. This standard is met if the cost: (1) Is incurred specifically for the Federal award; (2) Benefits both the Federal award and other work of the non- Federal entity and can be distributed in proportions that may be approximated using reasonable methods; and (3) Is necessary to the overall operation of the non-federal entity and is assignable in part to the Federal award in accordance with the principles in this subpart.

52 Relative Benefit From USDOL Determining the relative benefit does not require partners to conduct an exact or absolute measurement of benefit, but instead measures a partner s benefit using reasonable methods that are agreed to by all partners.

53 Proportionate Use A partner program contributing its fair share of costs. It can be the: Use of the center by customers who are enrolled in the partner s program Square Footage of the space taken up by staff that a partner program occupies in relation to the entire square footage of the AJC. An allocation base consistent with the Uniform Guidance

54 How Does a Partner Pay? Cash Cash funds provided to the local board or its designee by partners, either directly or by an interagency transfer, or by a third party Non-Cash Expenditures incurred by partners on behalf of the AJC; Non-cash contributions, goods, or services contributed by a partner program and used by the AJC center Third-Party In-Kind Contributions of space, equipment, technology, non-personnel services, or other like items to support the infrastructure costs associated with onestop operations, by a non-one-stop partner to: Support the one-stop center in general; or Support the proportionate share of one-stop infrastructure costs of a specific partner

55 How Does a Partner Pay? Non-Cash and Third-Party In-Kind payments must be valued consistent with 2 CFR to ensure they are fairly evaluated and meet the partners proportionate share. Partners must fairly value contributions on a periodic and annual basis.

56 Some Examples Example #1 The Adult Education provider in Susquehanna contributes the TABE test materials that could be used to assess customers. Example #2 A non-profit dedicated to providing quality services to individuals with disabilities wishes to provide assistive technology to DORS. DORS uses that third-party contribution as a portion of its infrastructure contribution to the AJC in Frederick. Example #3 Surplus office furniture See pages of TEGL 17-16

57 More Examples Cost Pool Facilities: Building rent, maintenance costs, utilities, tenant improvements, or any other similar costs related to the physical structure housing the onestop center. Telecommunications: Monthly telephone costs, telephone system equipment, data lines, T-1 lines, and other similar costs. Shared Equipment and Supplies: Staff copier, fax, associated supplies, and furniture. Possible Allocation Bases Square footage occupied by each partner agency as compared to the total space. Workstation usage by partners as compared to total workstations. Dedicated telephone units as compared to all units. Usage by staff of each partner program. Occupancy (square footage) basis; numbers of staff workstations.

58 The Local Funding Mechanism Is based on relationships that have been formed in developing the Local Plan, and worked out in setting the vision in the MOU

59 Then there was the State Mechanism When the required partners fail to reach consensus on infrastructure, the Governor will: (1) Determine the portion of funds to be provided by each partner. (2) Calculate the statewide cap on contributions

60 Then there was the State Mechanism The Governor establishes the cost allocation method number of customers served, square footage used, or a different base The Governor determines the partner s proportionate share of infrastructure funding costs The Governor calculates the statewide cap to determine maximum amounts that required partner programs could be required to contribute to infrastructure

61 State Mechanism Limits Program Type Limiting Percentage WIOA Title I programs (youth, adult, and dislocated worker) 3% Wagner-Peyser Act 3% Adult Education and Family Literacy Act Perkins IV Vocational Rehabilitation TANF CBSG 1.5% Other required partners 1.5% 1.5% of funds made available for postsecondary level programs and activities and funds used to administer postsecondary level programs and activities in the prior year 0.75% FY 2016 of Federal VR funding 1.00% FY 2017 of Federal VR funding 1.25% FY 2018 of Federal VR funding 1.50% FY 2019 of Federal VR funding 1.5% of funds from previous year spent on work, education, and training activities plus any associated admin costs 1.5% of funds from previous year spent by local CSBG-eligible entities to provide employment and training activities plus any associated admin costs Non-required partners n/a

62 Wrapping Up You ve come a long way as a local area (local planning, MOUs, etc.) You ve set the parameters of your relationship. You ve set the vision of your local area. You re going to be working together for a long time. Do you want to start your relationship going to impasse?

63 Meet Whaylen Whaylen was affected by the recent Mars Supermarket closing. Whaylen had been a Mars employee for 18 years, having worked 15 years in the Meat Department as a Journeyman Meat Cutter. Whaylen was referred to the American Job Center (AJC) in Hunt Valley by a former Mars co-worker that had previously utilized Hunt Valley AJC services. Whaylen was assisted with revising his résumé and navigating Maryland Workforce Exchange (MWE). He was able to network with various organizations at a job fair held by Mars and planned to inquire about employment opportunities at Sam s Club. Staff conducted a mock interview with Whaylen to prepare him for his interview later that day. Together, Kellie and Anthony provided suggestions to Whaylen on how to answer difficult interview questions and discussed strategies to convey confidence to the interviewer(s). Within three (3) days of his interview, Whaylen began working for Sam s Club in Timonium as a Meat Cutter.

64 Meet Tiffany Tiffany was seeking full-time employment that would provide sustainable income to secure housing and pay living expenses. Although she has a Master s degree, Tiffany believed her criminal record was a barrier to employment within her field. Baltimore County s Department of Social Service (DSS) and the Community Assistance Network (CAN) referred Tiffany to Baltimore County s Mobile Career Center (MCC) in 2013, as she was a resident of a local homeless shelter. Besides customary services such as résumé critique and revisions, job search advice, MWE tutorial, community resource information and Maryland Workforce Exchange (MWE) tutoring Tiffany also received referrals to the Baltimore County American Job Center Re-entry Information Session (RIS) and Johns Hopkins Project R.E.A.C.H. (Resources and Education for the Advancement of Careers at Hopkins) program. Because these services have no boundaries, when Tiffany moved out of the shelter at the end of 2013 and into transitional housing in Baltimore City, assistance was still available for her to meet her employment goals. Although Tiffany secured seasonal / permanent employment with FedEx in October 2013 and worked temporary administrative positions with a staffing firm, it was not enough. Tiffany received and accepted an employment offer as a Coordinator with Americorp Vista-Higher Achievement Baltimore where she began her career in mid-november of 2015.

65 Meet Charles Charles is a service-connected disabled Combat Infantry Army Soldier who was medically retired. He was referred to the Cumberland American Job Center by a U.S. Department of Veterans Affairs Vocational Rehabilitation and Employment (VR&E) counselor. Through VR&E s Workstudy program, the American Job Center hired Charles to assist with the veteran services program. Hiring Charles through the work study program afforded him many opportunities. For example, he could help other veterans with employment need and hone his résuméwriting skills, while being able to pay his mortgage and other life expenses. Although not easy, Charles attended college as a full-time student while working full-time at the American Job Center. Realizing Charles priority was attaining his education, American Job Center management catered a work schedule around his classes. The American Job Center veteran services staff were thankful for the part they played in helping Charles achieve his educational and employment goals. After obtaining his cyber security degree, Charles was ultimately hired with the Department of Homeland Security in Harpers Ferry, West Virginia.

66 So, here s the question What are our centers going to look like for the next Whaylen? What about Tiffany? Or Charles?

67 So, here s the question When can we get through all of this compliance stuff and get to innovating?

68 Questions? Brandon S. Butler, Esq. Deputy Assistant Secretary Division of Workforce Development and Adult Learning Maryland Department of Labor, Licensing & Regulation 1100 North Eutaw Street Baltimore, MD (office) (cell)