DOCUMENT RESUME

ED 361 505 CE 064 441

AUTHOR Farmer, Barbara AnnTITLE Guidance for Implementation of the Job Training

Partnership Act (JTPA) Amendments of 1992; Questionsand Answers. Field Memorandum No. 34-93, Change 1.

INSTITUTION Employment and Training Administration (DOL),Washington, D.C.

PUB DATE 16 Jul 93NOTE 26p.PUB TYPE Viewpoints (Opinion/Position Papers, Essays, etc.)

(120)

EDRS PRICE MF01/PCO2 Plus Postage.DESCRIPTORS Adult Basic Education; *Employment Programs; *Federal

Programs; Guidelines; *Job Training; PolicyFormation; Postsecondary Education; *ProgramImplementation

IDENTIFIERS *Job Training partnership Act Amendments 1992

ABSTRACT

This paper provides additional guidance to states inthe form of supplemental questions and answers to facilitate thedevelopment of policy for service delivery areas (SDAs) and othersubrecipients of funding under the Job Training Partnership Act(JTPA) Amendments, which took effect on July 1, 1993. Topics coveredare the following: definitions, relocation, Higher Education Actcoordination--Pell Grants, on-the-job training, work experience,administrative standards, performance standards, monitoring andoversight, sanctions for violations of the JTPA, transition, stateplanning--Human Resource Investment Council, 8 percent stateeducation and coordination and grants, older individuals, incentivegrants funds, Private Industry Council certification, program design,eligibility determination, Title IIB summer youth programs, and TitleIII questions. (KC)

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Reproductions supplied by EDRS are the best that can be madefrom the original document.

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U. S. Department of LaborEmployment and Training Administration

Washington. D.C. 20210

CLASSIFICATION

JTPACORRESPONDENCE sYmact.TDCPDATE

July 16, 1993

DIRECTIVE : FIELD MEMORANDUM NO. 34-93, Change I

TO: :

RCM :

U.S. DEPARTMENT OF EDUCATIONOffice of Educational Research and Improvement

EDUCATiONAL RESOURCES INFORMATIONCENTER (ERIC)

his document has been reproduced asreceived from the person or organizationoflimmtinga

0 Minor changes nave been made to improveref:Production Quality

Pointi of vim or opinions stated in this doCu.Ment dO not necesSanly represent officialOER1 position or pohcy

ALL REGIONAL ADMINISTRATORS

BARBARA ANN FARMERAdministratorfor Regional Management

r'ZiC24.;Ori4..2..) 12*.../.9a4..smeW

: Guidance for Implementation of the JobTraining Partnership Act (JTPA)Amendments of 1992; Questions and Answers

1. Purpose. To provide additional guidance to Statesin the form of supplemental Questions and Answers tofacilitate their developing policy for Service DeliveryAreas (SDAs) and other subrecipients as they establishsystems in response to the JTPA Amendments, which takeeffe-t on July 1, 1993.

2. References. Field Memorandum (FM) No. 34-93, datedMarch 26, 1993

3. Background. The above-referenced Field Memorandumtransmitted an initial 123 questions with preliminaryanswers on items raised in the State JTPA Liaisonmeeting on the 1992 amendments and the Interim FinalRule implementing the amendments. FM No. 34-93indicates that the preliminary responses in theattachment to that document were being issued inadvance of formal clearance by ETA and the Solicitor'sOffice. Those Q's-& A's have subsequently been clearedand are reflected so in the automated system. Oneanswer has been modified (Q. No. 24) and transmitted toall Regional Offices. Some questions have been raisedconcerning certain other answers, which are beingreviewed to determine if additional guidance iswarranted.

This Change 1, to FM 34-93 is being issued inrecognition of the need to formally respond to many ofthe questions raised in the various Regional amendmentstraining sessions. There is a huge backlog of suchquestions, which are being reviewed by the appropriateOffices and officials for approval and dissemination tothe JTPA system. The attached Q's & A's have been

RESCISSIONS

NoneIEXPIRATION DATE

March 31, 1994

2 BEST COPY AYMI.ALIF.

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culled from a number of the Regional sessions. Theywill also be entered into the automated Q & A systemafter this issuance. Additional Change documents to FM34-93 will not be issued prior to the publication ofthe final JTPA regulations, nor do we expect thatquestions that have been entered into the automatedsystem by the various Regional Offices will beaddressed until development of the final regulations.Any modification to a response contained in theattached responses will be immediately transmitted toall Regional Offices.

4. Action. The Regional Offices should proceed totransmit the Q's & A's to the States, consistent withthe direction contained herein.

5. Inquiries. Questions may be directed to Jim Aaronat (202) 219-6825 or Hugh Davies at (202) 219-5580.

6. Attachment.

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Definitions

Q.

A.

ATTACHMENT TO FM 34-93, Change 1

Who decides when alcohol or substance abusebecomes a disability?

Alcoholism has always been a disability under Section504 of the Rehabilitation Act. Someone using illegaldrugs is not considered as having a disability--but,someone who is a recovering addict or who is currentlyparticipating in a rehabilitation program i2 consideredto have a disability and is to be protected.

Who makes the determination that an individual has analcohol problem?

Determination of a disability is based upon ary one ofthree methods: self-identification, having a record ofalcohol abuse (individual is referred to JTPA fromrehabilitation program, etc.), or individual isregarded by their intake worker, case manager, etc., ashaving the disability.

In the definition of a "Family" the Act deals with anuclear family, not the kinds of extended families thatwe encounter in our job training programs. Health andHuman Services (HHS) recognizes extended familyrelationships (aunts, cousins, grandparents, etc.) indetermining family income. Should income be treatedthe same for both HHS and JTPA?

No. For JTPA States/SDAs should use the more limitedJTPA definition, found at Section 4(34) of the Act.

How would a youth who lives with his/her grandparentsbe treated for the purposes of defining "family"?Would he/she be considered part of his/her nuclearfamily as defined at Section 4(34)(A), or as anindividual in a "family unit of size one"?

In making a determination in such a case it woulddepend on how the youth came to be living with thegrandparents, and whether the arrangement was temporaryor permanent, voluntary or involuntary, or whether thegrandparents were legal guardians or not. Section626.5, Definitions, of the interim final rule providesthat the Governor may provide interpretationd on theterm "family" to address situations such as these. TheDepartment does not plan to provide further guidance onthis matter.

When does an applicant become a participant?

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The term "Participant" is definedthe Act. In most instances underdefinition willbe met with the initiation of thedescribed at 20 CFR 628.515.

Relocation

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at Section 4(37) ofTitle II, the

objective assessment

What will constitute adequate documentation from theemployer that his/her move has not resulted in loss ofjobs at the original location?

Self-cctrtification and reasonable checking on the partof the SDA.

Higher Education Act Coordination -- Pell Grants

Q.

A.

Does the requirement that SDA contracts with Pelleligible institutions contain provisions on the amountand disposition of HEA title IV awards preclude sucharrangements being made at the service provider level?

Local variations that provide for the required exchangeof information at the service provider level may beappro- priate. If there are numbers of serviceproviders, the SDA may wish to enter a singleagreement.

On-the-Job Training (OJT)

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Can a person who does all the jobs from recruitment toplacement, and all the jobs in between, be charged todirect training services?

Pursuant to the provisions at 20 CFR 627.440(e) (1),the title of a position does not necessarily indicatethe cost category to which that person's salary will becharged. In the question's example, that portion ofthe person's time which benefits the "Direct training"cost category may be charged to "Direct Training."

If an SDA uses the Joh Service to develop OJTcontracts, does Job Service become a broker?

Yes.

Is an OJT broker a subrecipient?

Yes.

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If an OJT is wiitten for youth, they must be given

instruction in work maturity skills, general employmentcompetencies, and occupational specific skills. Does

this mean work maturity youth competencies? Can it be

defined separately? What are general employmentcompetencies?

Youth OJT should be approached from the standpoint of

the policy concern which the Congress was seeking to

address. The intent is that youth OJT provide trainingin higher skill jobs and that youth be prepared in

other than the OJT experience itself for entering the

labor market, however, the additional requirements do

not have to be specifically tied to youth competency

measures.

The regulations at 20 CFR 627.24.0(g)(2), which deal

with employer loss of eligibility for OJT contracts, is

not as descriptive as the Preamble dealing with thistopic on page 62009 of the regulations. Which should

be followed?

The regulation has the force of law. The Preamble is

only for illustrative purposes.

Training materials seem to suggest that employers maybe reimbursed for a maximum of 1040 hours under OJT.What is the statutory or regulatory basis for this

limitation?

The 1040 hours figure was used for instructionalpurposes, to contrast what would be "normal" formaximum reimbursement to employers of 6 months,

compared to the exception in excess of 6 months but fornot more than 499 hours, pursuant to 20 CFR 627.240(b).There is no statutory or regulatory limitation of 1040hours, only six months.

If an OJT participant becomes ill and misses one month

of their original six month OJT, can the contract berewritten so that they can complete the entire sixmonths of training (even if this six months of training

now spans a seven month period of time.)

The statute, at Section 141(g), provides that theperiod of training "for a participant shall be limitedin duration to a period not in excess of that generallyrequired for acquisition of skills needed for theposition within a partimlar occupation, but in no

event shall exceed six munths . . " In the examplein the question, the participant would not be "in"training for the period of illness, and, therefore, the

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OJT contract could be modified, if necessary, toreflect six months of actual training.

Q. Why all the restrictions on OJT with temporaryemployment agencies?

A. Because of the need to ensure that a real durableemployer/employee relationship exists.

Q. If the normal work week is, for example, 45 hours perweek, then the number of hours within the 6-monthreimbursement period could be as many as, for example,1160 hours, correct?

A. That is correct, assuming that the State policies andprocedures on OJT would permit this.

Q. Will there be a definition and federal guidance in thearea of "pattern of failure"?

A. No. The Governor will need to define this term in thecontext of the State's policy governing OJT activities.

Work Experience

Q. Work experience has to be combined with otheractivities. Why don't limited internships have to becombined with other training?

A. 20 CFR 628.804(i)(3) indicates that internships may becombined with other activities. Our generalexpectation for the individual service strategy (ISS)for any individual would take into consideration thecombination of services which best responds to theiremployment needs.

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May a youth be enrolled in more than one workexperience of 500 hours?

A youth may participate in work experience of aduration of greater than 500 hours. The requirementfor work experience should be recorded in the ISS.

Administrative Standards

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What changes, if any, are being made or contemplated recost allocation and in particular administrative costpools (ACPs)?

The ACP language contained in the interim final rulewas not intended to eliminate the use of "true costpools" in accounting for the costs of JTPA programs.It was also not intended to go beyond the requirementsof Section 108(a) of the Act, Generally AcceptedAccounting Principles (GAAP), or simIlar provisions inOMB Circular A-87.

JTPA entities may continue to use administrative costpools, indirect cost pools, training cost pools, intakecost pools, pools for supplies expense, and othercomparable intermediate cost pools for the 'recordingand temporary accumulation of joint or similar types ofcosts in which accumulated costs will be allocated backto the benefitting program(s) at a later date. Theissue is how to distribute these costs back to thebenefitting program.

For many JTPA entities, allocating administrative costsbased on each program's share of total direct costs ortotal program costs compared to the total direct costsor total costs of all programs administered by anentity is an acceptable methodology. But, eachorganization is different and costs, particularlydirect costs, are charged differently. Each entitywill have to determine the best approach and may desireconsultation with the State's or SDA's auditor. TheEmployment and Training Administration will accepttreatments of pooled costs and allocation methodologiesthat are consistent with GAAP.

Q. Do Governors have to set the salaries for the SDAstaff?

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Q.

No. The Governor must establish allowable costguidelines for the SDAs to use, which includecompensation, but these guidelines should be generalprinciples for compensation not specific salaries.

For the purposes of within State reallocations underSection 109(a), who will determine the "highest ratesof unemployment for an extended period of time" and the"highest poverty levels?".

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The State will be responsible for determining theseareas for reallocation purposes.

Is a State Department of Commerce a Government entity?

Yes, according to OMB Circular A-128 (Governmententity).

In OMB Circular A-133 audits, there may be instanceswhere there are no specific findings, but there areareas of improvement which an auditor may include in amanagement letter. Should the State get a copy of thesubrecipient's management letter?

OMB Circular A-133 audits will report all findings.The State should seek a copy of the management lettereven though it does not include any questioned costs.

Can there be monetary findings as a result of State andFederal monitoring?

Yes. Allowable cost findings from monitoring shouldget the same treatment as such findings in audits.Non-cost monitoring findings do not require a formalFindings and Determination process unless normalinteraction does not work.

Will there be further clarification on carry-in of oldJTPA funds on July 1, 1993, and impact on costcategories and cost limitations?

This area of cost limitation compliance is furtherclarified in the June 3, 1993 Federal Register notice(58 FR 31472) as follows:

(3) In determining compliance with JTPA costlimitations for PY 1992 funds, Governors nayeither:

Determine cost limitation complianceseparately for funds expended in accordancewith paragraphs (g) (1) and (g) (2) of thissection; or

Determine compliance for each costcategory against the total PY 1992 funds,whether expended in accordance with the Actand regulations in effect prior to the 1992amendments to JTPA or in accordance with theamended Act and these regulations. Usingthis option, the total combined funds fortraining and direct training costs should be

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at least 65 percent of the PY 1992 SDAallocations.

Q. What are the Stata's responsibilities regarding theGovernor's items of costs?

A.

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Section 627.435(1) of the interim final rule isconsistent with the requirement that has existed sincethe beginning of JTPA in 1983 that "The Governor shallissue guidelines on allowable costs for. . ."

Such guidelines should set parameters and guidance,rather than actual amounts. Our intent is to ensurethat the Governor's guidelines address each of theseitems. We plan to change the language in the finalrule by replacing the words "and amounts" with "or theextent of allowability".

For most States, the existing allowable cost guidelinesof the Governor already meet the requirements of thisparagraph and few if any changes are necessary. AllStates should review their current allowable costguidelines and ensure that each of the listed items aretreated as well as other cost items for which theGovernor feels treatment is necessary. If a State hasadopted the OMB Circulars on Cost Principles, allrequired items of cost would be covered. Note,however, that 1) we do not intend to approve ordisapprove any prior approval requests, as required bythe Circulars, and 2) the OMB Circulars containrestrictive requirements in areas in which States,SDAs, and SSGs may desire greater flexibility, e.g.,staff compensation, fees/profits, fund-raising.

What are the criteria for differentiating a vendor froma subrecipient?

A. A definition of both of these terms is set forth at 20CFR 626.5 of the interim final rule.

Q. To what cost category should work experience paymentsbe charged?

A. To the "Direct training" cost category.

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Q. Under the selection of service provider provisions atSection 107, is the SDA required to prove that theeducation agency cannot provide the best service?

A. Ths education agency must be provided the opportunityto compete to provide the service. This means thatthey should be provided copies of RFP's, etc. Anyproposals that are received from educationalinstitutions are to be reviewed and rated in the samemannar as proposals received from any otherorganizations.

Q. What is the basis for bringing services in-house?

A. Costs, efficiency, availability of providers, etc.Whether services are brought in-house, or are alreadybeing provided in-house, the State SDA or SSG mustcomply with the requirements of 20 CFR 627.422(c).

Q. What if a service provider lies on his debarmentcertification and auditor takes exception to the costs?

A. The service provider is liable for the disallowedcosts. However, pursuant to 29 CFR 98.510(b), the SDAwould be entitled to rely on the service provider'scertification and would not be liabe for thedisallowances.

Q. Can the Service Delivery Area take a positivetermination for a participant who gets hired on his/herown at a relocated company?

A. Yes

Q.

A.

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If the Department, Office of Inspector General, or theComptroller General conduct an audit must they providea copy of the audit guide they are using for theiraudit?

Section 165(b) (3) of the Act requires that the entityto be audited receive advance notice of the overallobjectives of the audit and any extensive recordkeepingor data requirements for the audit.

Do some provisions of OMB Circular A-87 still apply,such as leasing property requirement?

The detailed requirements of OMB Circular A-87 havenever applied to JTPA programs. If, however, a Statehas adopted OMB Circular A-87, in whole or in part, for

its JTPA programs this would be as State requirementsand not as Federally imposed requirements.

If a training provider requires uniforms or other itemsfor training, are these direct training costs?

Yes.

When can noncompetitive procurement be used to acquiregoods and/or services?

Pursuant to 20 CFR 627.420(d) (4), noncompetitiveprocurement may be used only when it is infeasible toprocure competitively and one of the six specifiedcriteria are met. The intent of the Act andregulations is to ensure free and open competition.

How are intra-title transfer of Title II-B funds toTitle II-A shown on the financial reports?

For the 1993 summer program, the amount of obligationalauthority moved should be identified in the "remarks"section of the financial report. Thus, the reportswill reflect the total amount all of the SDAs in aparticular State wish to transfer for this year. Insucceeding years, intra-title transfers will bereported as "Net transfers" on the new financialreporting instrument. (See also TEGL No. 6-92.)

Does the State have the option of using OMB CircularsA-i28 or A-133 to audit the State Higher EducationDept.

No. The Q's and A's for OMB Circular A-133, an officialissuance of OMB, (questions 18/19, page 10) providesStates a choice in audit coverage between A-128(States) and A-133 (Higher Learning Institutions) foraffiliated Institutions of Higher Learning. Thisoption does not apply to State .:epartments ofEducation.

Is it a vendor or a subrecipient? Scenario: a privatevocational school; open to the general public; coursecost is "catalog" based; impose same general entrancecriteria that are for the general public includingpassing and ability to benefit test, e.g., high schooldiploma and 10th grade reading level, all of which isdetermined by the school; offer placement assistance tograduates of course at same level that they offer it togeneral public.

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If there are no required placement criteria designed tofurther program objectives, and no entrance criteriaspecific to JTPA participants, e.g., provision ofobjective assessment included in the contractualagreement, the entity appears to be a vendor.

Do the Act and regulations permit the State and SDAs tocontract with school systems on a sole source basis?

Yes, provided that the provisions set forth at 20 CFR62/.420(d)(4) are met, and the Governor's procurementprocedures so provide.

Performance Standards

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At what point, specifically, does a person count towardperformance standards?

For Title II purposes, individuals who have: a) begunobjective assessment and b) have begun participatingin training or receiving job search assistance.

What is the reason that Section 124 of the Act requiresan identification of those additional performancestandards requirements imposed by States and SDAs?

The purpose is to clearly differentiate requirementsimposed by the Federal Government from those imposed byStates and SDAs.

Q. Do performance standards apply to older workers?

A. Yes, but the standards have not yet been developed.There are no incentive funds attached to meeting orexceeding the standards, nor are there any sanctionsfor failure to meet the standards.

Nonitoring and Oversight

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The State is required to monitor each SDA every year.Does this mean that every area must be monitored eachyear, or can the State plan to look at classroomtraining and OJT in one year and a different area thenext?

The interim final rule at 20 CFR 627.475(b) providesthat the Governor shall develop a monitoring plan forState monitoring which, among other things, ensuresthat SDAs and Title III substate grantees are monitoredon site regularly, but not less than once annually.The specific areas to be covered, and the frequency of

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review of local systems for the JTPA program, would bespelled out in the State's monitoring plan.

Sanctions for Violations of the Act

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Explain the differences between "waiver of liability"at S627.704, and "foregoing of debt collection" atS627.706?

There is no provision to waive any misexpenditure of aState level entity. For misexpenditures of an SDA,SSG, or other direct recipient of the State, a Statemay request a waiver of liability if it has met thefour factors of Section 164(e) (2) of the Act and it candemonstrate that further debt collection efforts wouldbe inappropriate or prove futile.

For misexpenditures below the SDA, SSG, direct Statesubrecipient level, the State may request approval toforego debt collection action against the SDA, SSG, orState subrecipient if that entity met the four factorsof Section 164(e) (2) of the Act and it can demonstratethat further debt collection by the entity or by theState would be inappropriate or would prove futile.

All such decisions must be raised to ETA because theregulations specify that there can be no "release fromliability" until such a determination is made by theETA Grant Officer.

Transition

Q. Will States need to track separately the PY 1992 fundsthat are used under the old rules?

A. Yes.

Q.

A.

Would the new procurement requirements apply to acontract in place prior to July 1, 1993, which is beingmodified to reflect a new means of trackingadministrative cost limitations?

Since the basis for the contract would not be changed,then the terms need not change. If participantsenrolled into the program after July 1, 1993, areserved by the contract, it may be necessary to mod,fythe contract to bring it into compliance with allapplicable requirements.

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Can the State determine if there is a need to recompetea procurement?

States should exercise caution in this area, andconsult with procurement and legal staff prior tomodifying contracts to determine if modifying anexisting contract could result in a protest fromvendors who had previously competed for the award.

Under the provisions of S 627.904(a), how do unexpendedthree percent funds from Program Year (PY) 1992 becometransformed to Title II-A five percent funds in PY1993?

The principle would be similar to that for othertransition provisions; that is, "old" money used for"old" purposes would be permitted for participantsenrolled by June 30, 1993 and reported as previously,while "old" money used for "new" purposes would besubject to the requirements of other "new" provisions(S627.904(a)) and recorded pursuant to S627.904(h).

The "Transition" TEL No. 7-92 increases the costlimita-tion for administrative costs from 15 to 20percent for Title II-A. Is this true for the setasidesas well as for the 78 psrcent funds.

Yes, for those setaside funds where the 15 percentlimitation for administration applies (e.g., the 80percent of the 8-percent funds at Section 123(c)(2)(B)for services to participants).

State Planning -- Human Resource Investment Council Clugl

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What is being done at the federal level to work withthe programs designated in the Act as potential HRICparticipants? States are already approaching the Statelevel agencies, but such agencies have heard nothingfrom their federal counterparts about the new amendmentlanguage.

All of the programs and Departments which are includedon the HRIC were consulted during the development ofthe legislation. What has happened since the passagels the change in Administration and leadership in thoseagencies. As with the Department, new leadership isslow in getting on board, and as a result, workingrelationships on issues such as mutual support for theHRIC has not been initiated. ETA has been veryactively involved with other organizations representingother HRIC programs, such as the National Associationof State Councils on Vocational Educatict (SCOVEs). As

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a result, all SCOVEs are fully informed about HRICs.Twenty States are committed to establishing HRICs orhave done so already. Twenty others are deliberatingon HRIC establishment.

Q. May the State legislate the formation of a HumanResource Investment Council (HRIC)?

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Yes, although it may not be necessary. Some States aremoving forward without action by the State legislature.Others feel that a permanent solution is desirable, sothat things may not become undone with a new Governor.In some instances, legislation may not be sufficient toestablish an HRIC. There are States where the Governorand chief educational official are both electedofficials with comparable status, and the Statelegislative branch may not have the authority to compelaction on the part of the State executive branch. Thesituation will differ based on the structure ofgovernance in different States.

How should the HRIC, if formed, be involved with "eightpercent" education funds?

Since the education agency or agencies and State JTPAofficials involved in developing agreements will all berepresented on the HRIC, it may be a vehicle forpublicly developing and ratifying such agreements. On

the other hand, agencies and organizations which mayDot have direct responsibility fOr Section 123 programsmay be brought into discussions unnecessarily; e.g.,the State JOBS agency, or union representatives, mayhave only limited interest in the State's agreement onuse of these funds. There would be a review andcomment responsibility for the HRIC, since theagreement should be incorporated into the State'sGCSSP.

8-Percent State Education Coordination and Grants

Q.

A.

Do barriers have to be documented for 8-percentprojects?

All 8-percent participants have to be experiencingbarriers to employment. Documentation for suchbarriers needs to be maintained. If an entire projectis directed to dropouts, then the documentation couldbe done for the entire project, rather than forindividual participants.

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Can work experience and limited internships be doneunder 8-percent? Do the same limits apply?

So long as the work experience and limited internshipsfit under the otherwise applicable regulatoryrequirements (e.g., SS 627.245 and 628.804 wouldapply), they can be used.

How do the "barriers to employment" provisions apply toprograms under Section 123 State education coordinationand grants?

Pursuant to Section 123(d)(2)(C), not less than 75percent of the funds must be expended "for projects foreconomically disadvantaged individuals who experiencebarriers to employment." For persons who are noteconomically disadvantaged, priority is to be given "toTitle III participants and persons with barriers toemployment."

Barriers should be specified in agreements entered intobetween the Governor, State educatirm agency oragencies, administrative entities, local educationagencies, and other entities. Neither the Act nor theregulations go into further detail with regard to thebarriers to employment that are to be applied;therefore, this is an area where the Governor may applyState interpretation. An interpretation thatidentified adult barriers at Section 203(b) of the Act,or youth barriers at Sections 263(b) and (d), would notbe inconsistent with the provisions of the Act andregulations. "Add-a-barrier" provisions of Sections203(d) and 263(e) would also not be inconsistent.Other barriers to employment not addressed in thesesections of the Act would best be adOressed through aState interpretation.

May funds available under the Carl D. Perkins Act beused to satisfy the JTPA 8-percent matching requirementat Section 123(b)(2)(A)?

Yes, pursuant to the provisions set forth at Section511 of the Carl D. Perkins Vocational and AppliedTechnology Educational Act, as amended.

For Section 123 "projects" where 75 percent of fundsmust be used for participants who are economicallydisadvantaged -- are projects (for instance, schoolwideprojects) permitted where all participants are noteconomically disadvantaged?

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The requirement is that 75 percent of Section 123 fundsmust be expended for economically disadvantagedparticipants. Within this parameter, there could beprojects exclusively for economically disadvantagedpersons, projects exclusively for non-economicallydisadvantaged persons, and projects with a mix of both.

The Act, in Section 123(a)(3) states that the federalshare of the cost of projects described in 123(a) (2)

shall be 50 percent. Section 123(a) (2) includesactivities related to coordination of education andtraining, for which up to 20 percent of the funds may

be spent. However, the regulations in 628.215(e) onlyrequire the Governor to guarantee matching funds forprojects described in Section 123(b), which areprojects conducted under cooperative agreements betweenthe education agency and Service Delivery Areas. Must

all coordination activities carried out with the 20percent funds be matched?

Yes. A one hundred percent match is required sincecoordination is among the "projects" specified at

Section 123(b).

The Act and the regulations state that up to 20 percent

of 8-percent funds may be used to facilitatecoordination of education and training for participantsin projects targeting literacy and lifelong learningopportunities, school-to-work transition services, andnontraditional employment for women. Is it acceptableto fund projects that promote educational coordination,such as research studies or statewide initiatives, butthat do not directly benefit specific participants inthose 8 percent funded projects?

Funding such projects is acceptable so long as theirpurpose is the coordination of education and trainingthat will ultimately benefit JTPA participants.

Older Individuals

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How do the "barriers to employment" provisions apply toSection 204(d)(5) "five percent" program for services

to older individuals?

Section 204(d) (5) provides that eligibility criteriafor the older worker program are age 55 and older andeconomically disadvantaged; except that 10 percent ofparticipants need not be economically disadvantaged ifthey face "serious barriers to employment" and meet

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income eligibility requirements under Title V of theOlder Americans Act of 1965.

Section 204(d)(6)(B)(i) identifies a number ofprovisions that are not applicable to the older workerprogram, including Section 203, "Eligibility forServices," which lists categories of hard-to-serveadults.

The Governor may interpret "serious barriers toemployment" for Section 204(d) programs. A Stateinterpretation that defines the term as adult barriersat Section 203(b) would clearly not be inconsistentwith the Act and regulations. Other barriers would bebest addressed through State interpretations.

How will 5-percent Older Individual funds be allocated?

According to the regulations, allocation will be basedon the older individual population within a ServiceDelivery Area (SDA) and the participation of suchindividuals in the labor force. It is not necessaryfor every SDA to receive 5-percant funds for OlderIndividuals.

Are social security payments now required to beincluded in calculating income eligibility for olderindividuals for 5-percent services under Section 204(d)of the Act?

Yes. These payments are included because DHHSguidelines also include them; DOL is trying to achieveconsistency.

Incentive Grants Funds

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A.

How has the new capacity-building language changedrequirements in this area? All efforts have beenState-funded in the past; now they are to be co-fundedby the State and SDAs?

Under the "old" Act and regulations, "six percent"funds could be used for technical assistance, includingpreventative technical assistance. "Technicalassistance" was liberally defined to include stafftraining and development, which is largely what the newAmendments and regulations deal with in terms of"capacity building." (These terms are defined in the"new" regulations.)

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Prior to the enactment of the Amendments, some Statesand SDAs did jointly fund what we would now term"capacity building." But in the majority of States,efforts were exclusively State-funded.

Capacity-building efforts need not be jointly funded byStates and SDAs under the Amendments, although this isencouraged in the regulations. States may, but are notrequired to, use one-third of "five percent" fundsunder Section 202(c)(1)(B) for capacity-buildingpurposes. The other two-thirds of the funds must bepassed down to SDAs through incentive grants, and maybe used by them for capacity-building purposes as well,

and cost-sharing approaches involving the State and/orother Federal, State, and local human resource programsare encouraged but not required, pursuant to 20 CFRSection 628.325.

May 6-percent funds be used for redesign of ManagementInformation Systems (MIS) in PY 1992?

Yes. (For additional information on the use of 6-percent incentive funds for MIS redesign, see TEGL No.

2-92.)

Private Industry Council (PIC) Certification

Q. May the Governor certify the Pri-ate Industry Council(PIC) more than once every two years?

A.

Q.

The Governor must certify the PIC every two years, andnay certify it more often.

Must the Governor issue procedures for PICcertification?

A. Yes, these procedures must be in the Governor'sCoordination and Special Services Plan.

Q. The apparent versus actual conflict of interestprovisions aren't clear; how do we protect against an"apparent" conflict of interest?

A. By design, PICs often include service providers. Thisis all right but they must excuse themselves fromvoting or influencing discussion on contracts thatwould benefit them and this should be documented. Thefinal regulations are expected to clarify this matter.

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Program Design

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May someone receiving food stamps be considered asfulfilling the barrier for targeting welfarerecipients?

No. However, the SDA with the approval of the Governormay designate this as an additional "add-a-barrier"target group. Also, food stamp recipients are definedas eligible under the definition of "economicallydisadvantaged."

May Title II eligible applicants receive supportiveservices?

Supportive services may be provided to eligibleapplicants. Such services provided to applicantsshould be for the purpose of allowing them to accessthe program - e.g., transportation and child care toget to and go through the intake process.

What documentation is required to validate the 70percent "hard-to-serve" minimum for a school-wideproject? (JTPA Sec. 263(g)(1)(c)

Verification from the school that at least 70 percentof the students qualify as "hard-to-serve" issufficient, as found at 11-7 of the Title IIEligibility documentation TAG.

What constitutes "appropriate circumstances" at Section204(c) (1) which states that "(b)asic skills trainingprovided under this part shall, in-appropriatecircumstances, have a workplace context and beintegrated with occupational skills training?"(Emphasis added.)

A common sense reading of the law and regulationsshould be applied. "Appropriate circumstances," asused in Section 204(c) (1), would mean when the client'sobjective assessment and individual service strategyindicate that both basic and occupational skillstraining are necessary, and that combining the two isfeasible and not a logistical problem.

Under Section 203(c)(2)(A), the Act states that workexperience, job search assistance, job search skills,and job club must be accompanied by "additionalservices" designed to increase the basic education oroccupational skills of a participant. What constitutes"additional services"? Are additional services limited

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to basic skills, job specific, or occupational skillsor could it include the entire list of authorizedservices as described in Section 204(b)?

"Additional services" are only those that "increase thebasic education or occupational skills of aparticipant." Several examples of additional servicesare listed in the regulations at Section 628.535(b) (2)and include classroom, pre-apprenticeship, andoccupational skills training. Most of the activitiesdescribed at Section 204(b) (1) could be defined asadditional services and appropriately combined with jobsearch assistance. However, activities such asassessment, case management, and counseling would notbe considered additional services in accordance withSection 204(c)(2)(A) as they do not specificallyincrease educational or occupational skills.

How do we define "previous assessment?" An SDA mightopen itself up to grievances regardins lack ofvalidity/ consistency if you use more assessment toolssome of the time. What is the liability associatedwith using other agency's assessments?

The objective here is t.) recognize that there are otherassessments being developed for JTPA participants whichneed to be considered. The JOBS assessment is theeasiest example. We do not want to create aduplicative and possibly conflicting assessment andservice strategy for participants. Therefore, to theextent practicable, the JTPA program may use all orpart of an assessment which satisfies any of therequirements of Section 628.515(b) of the regulationsand is available from another source.

A service delivery area might want participants to signoff on the ISS, but it doesn't want to open itself upto grievances. (e.g., you didn't provide everything inthe ISS). What kind of a disclaimer will there be?(20 CFR 628.520(c))

The ISS should include a statement that the informationincluded represents a general plan of services andtraining intended to result in employment or otherappropriate outcome for the individual. It is not anentitlement to such services nor a contract between theprogram and the participant.

Do the assessment and ISS requirements apply equally tothe Title II-B program as they do for Titles II-A andII-C?

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The Transition provisions of the Interim Final Rule, 20CFR 627.904(k), require that the Calendar Year (CY)1993 Title II-B program be operated under the ,7TPAregulations dated September 22, 1989. The assessmentrequirements of those regulations are found at 20 CFR630.2.

For CY 1994 and future Title II-B programs theobjective assessment and individual service strategyrequirements as set forth in SS 628.515(b) (2) and628.520(b) (3) apply.

Is SSI included or excluded from family income foreligibility purposes. (Section 626.5)

SSI is regarded as public assistance and is thereforeexcluded. This exclusion was inadvertently omittedfrom the interim final rule, but will be reflected inthe final rule, when published.

For schoolwide projects under Section 263(a), how oftenmust the SDA comply with all of the criteria?

Since the school's status as a Chapter 1 school and thecharacteristics of the students may change from year toyear, compliance should be for the school year.

Are individual service strategies also required forindividuals served under 8-percent education and 5-percent older individual funds?

A. Yes

Q.

A.

Under Titles II-B and II-C further clarification isneeded for "incentive and bonus" payments. Are bothrequired to be provided to participants?

The language in the regulations at 20 CFR 628.305(c) is"and/or" indicating that it can be either and does notneed to be both.

Eligibility Determination

Q. Could documentation of tribal membership be used todocument citizenship?

A. Yes.

Q. Items listed for eligibility for cash public assistanceare for individuals listed on the grant. What is to beused if the individual is not listed on the grant? In

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the past, for eligaility, the person did not have tobe listed on the grant if they were part of the family.

This is still the case. That part of the definition of

economically disadvantaged has not changed.

Is ETA going to work out a release of information withthe U.S. Department of Agriculture (USDA) concerning

the free lunch program? Can SDAs use this criteria if

schools refuse to share any information?

We are working on it. USDA officials have advised us

that there are provisions in their Act and regulationswhich prohibit the overt identification of childreneligible for free lunches. They advise that schoolofficials may release summary information, such as thenumber eligible in a school. Information may also bereleased when a waiver form is signed by the parent.In this case, it is important that local JTPA officials

work with school officials to have JTPA eligibilitylisted on the waiver form. We are contacting USDAofficials to see if better arrangements can be set up,

such as if the student indicates he is eligible forfree lunch that the school would corroborate his or her

status. We will also consider options if noinformation is forthcoming from the school.

Title II-B Summer Youth Programs

Are wages allowed as compensation for academicenrichment programs under Title II-B?

Yes, as provided for at 20 CFR 627.305(f) of theinterim final rule, summer participants may receive

wages or wage equivalent payments for participation inactivities under Title II-B.

A.

Do the provisions of 20 CFR 628.535 pertaining tolimitations on job search assistance apply to Title

III?

No. The provisions at 20 CFR 628.Title II programs where objectiveindividual service strategies area statutory requirement for Titlebasic occupational retraining andshould be considered in designing

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535 apply only toassessment andrequired. While notIII, the need foreducational trainingservices for

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participants. If, however, someone only needs jobsearch assistance, it may be provided as a discretebasic readjustment service under Section 314(c) of theAct.

Are there new reporting requirements for Title IIIdiscretionary projects?

Yes, there are new reporting requirements for Title IIINRA Discretionary grants. The Dislocated WorkerSpecial Project reporting form (ETA Form 9038) iscurrently at the (Afice of Management and Budget forclearance so that its use can be expanded to alldiscretionary grants by July 1, 1993.

In the past, certification of an individual as adislocated worker has been sufficient to establish theindividual's eligibility fcr a Pell grant. Recently,however, some States or schools have no longerrecognized this certification and have evaluatedeligibility based on the individual's income, includingfor dislocated workers, earnings in the job from whichthey were dislocated. Consequently, many are now beingconsidered ineligible for Pell. Is there a way to findthem eligible?

This issue is being pursued with the Department ofEducation (DOE). However, in the meanwhile, if theState is more restrictive, then the State'srequirements apply.

Who determines what is a retraining activity in orderto qualify for a UI work search exemption (i.e., UI orEDWAA)?

Section 314(1) of the Act provides that "[e]ach Stateshall be responsible for coordinating the unemploymentcompensation system and worker readjustment programswithin such State." That section further provides that"(a)n eligible dislocated worker participating intraining (except for on-the-job training) shall bedeemed to be in training with the approval of the Stateagency for purposes of section 3304(a) (8) of theInternal Revenue Code of 1986."

When does a Title III applicant become a participant?

Unlike Title II, there is no objective assessmentrequirement in Title III. The term "participant" isdefined at Section 4(37) of the Act. In most instancesunder Title III, the definition will be met with the

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initiation of basic readjustment services (BRS) atSection 314(c) of the Act.

What is early readjustment assistance under BRS and whoprovides it?

If the substate grantee under its resources providesrapid response-type assistance in situations where theState will not provide rapid response through itsresources, then this is an example of earlyreadjustment assistance. Under these circumstances,such assistance may be charged to BRS rather than toadministration.

Q. Are there any changes to State EDWAA (Title III) plansneeded?

A. No, unless the State changes policies which it wouldlike to be reflected in the current State EDWA:% plandocument.