A presentation prepared by the Boston Regional Office for NYATEP's Spring 2012 Conference. The presentation is designed to give Federal grantees and sub-recipients valuable insights into the Federal perspective of oversight and monitoring requirements with ETA grants.

1. Employment & Training Administration
What to expect when you’re
expecting… the Feds
Presented By:
Timothy Theberge
ETA – Boston Regional Office
NYATEP Spring Conference - May 7-9, 2012

2. Employment & Training Administration
Topics to Discuss
• ETA’s Oversight Review Philosophy
• OMB Circulars
• ETA Core Monitoring Guide
• Compliance References
• Monitoring Requirements &
Responsibilities
• Governance 101
• Resources
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3. Employment & Training Administration
ETA’s Oversight Review
Philosophy
“I’m from the government and I’m here to help.”
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4. Employment & Training Administration
ETA’s Oversight Review Philosophy
• No Surprises
– Entrance & Exit Meetings – The rule of three
– Grantee participation in review of sub-recipients
– Guides and tools provided in advance
• Follow the Money
– State is the grantee but services are provided locally
– Includes the option to interview participants, visit
employers and review vendors/providers
• If it’s not documented, it didn’t happen
– “Documented” doesn’t always mean “paper.”
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5. Employment & Training Administration
Compliance vs. Technical Assistance
Compliance Assistance Technical Assistance
• “You’re doing it wrong.” • “Here’s how to do it
right.”
• “You’re still doing it • “Here’s a peer-2-peer
wrong.” contact to help you.”
• “Congratulations! • “This is a corrective
You’re now a high-risk action plan with TAT
grantee.” resources to help.”
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6. Employment & Training Administration
OMB Circulars
The cure for insomnia since 1952.
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7. Employment & Training Administration
Key OMB References
Cost Principles The other stuff:
• Governments • Single Audit
– 2 CFR 225 (A-87) – A-133
• Non-Profits
– 2 CFR 230 (A-122)
• Education
– 2 CFR 220 (A-21)
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8. Employment & Training Administration
Allowable, Allocable & Reasonable (Oh my!)
• Allowable
– As provide in OMB Circulars, grant agreement, applicable laws and
regulations.
– Necessary, reasonable and allocable.
• Allocable
– Assigning an allowable cost to one or a group of funding streams in
“reasonable and realistic proportion to the benefit provided.”
– May be indirect or direct.
• Reasonable
– The prudent person principle applies.
– Must receive consistent treatment.
– The cost must withstand public scrutiny.
– Necessary for the performance of the grant.
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9. Employment & Training Administration
First, know thyself.
Education Governments Non-Profit Commercial
Cost Principles 2 CFR 220 2 CFR 225 2 CFR 230 48 CFR 31
(A-21) (A-87) (A-122)
Uniform 29 CFR 95 29 CFR 97 29 CFR 95 29 CFR 95
Administrative 2 CFR 215 A-102 2 CFR 215
Requirements (A-110) (A-110)
Audit A-133 A-133 A-133 29 CFR 96
Requirement
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10. Employment & Training Administration
Core Monitoring Guide
We are not Federal auditors.
Part of our job is to audit-proof you. (You’re welcome.)
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11. Employment & Training Administration
• Core Activities
– Design and Governance
– Program and Grant Management
– Financial Management
– Service / Product Delivery
– Performance Accountability
• Additional Guides
– ARRA Supplement
– Financial Supplement
– National Emergency Grants
• Under Development
– Formula Grant Supplement
– Trade
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12. Employment & Training Administration
Core Activities (Sample)
Program & Grant Financial Management
Management Systems
• Objective 2.1: Administrative Controls • Objective 3.1: Budget Controls
• Objective 2.2: Personnel • Objective 3.2: Cash Management
• Objective 2.3: Civil Rights • Objective 3.3: Program Income
• Objective 2.4: Sustainability • Objective 3.4: Cost Allocation
• Objective 2.5: Match Requirements • Objective 3.5: Allowable Costs
• Objective 2.6: Equipment • Objective 3.6: Internal Controls
• Objective 2.7: Procurement • Objective 3.7: Financial Reporting
• Objective 2.8: Audit and Audit Resolution
• Objective 2.9: Reporting Systems
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13. Employment & Training Administration
Review Report Structure
• Findings
– Violation of law, regulation, advisory, policy, etc.
• The report will provide the citation.
– Requires corrective action.
– May or may not have associated questioned costs.
• Areas of Concern
– Not technically a violation or only a minor singular occurrence.
– Often a current practice or method that is less than ideal or an area
where there is room for improvement.
– If not corrected, may lead to a finding.
• Noted Practices
– Practice or policy that the Regional Office has identified as worthy of
note and as a potential resource for others to model.
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14. Employment & Training Administration
Compliance References
The semi-abridged list.
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15. Employment & Training Administration
Staying Inside the Lines
Federal Laws / Regulations: Advisories:
• Workforce Investment Act • Training and Employment
– 20 CFR 660 Guidance Letter (TEGL)
• Wagner-Peyser Act • Unemployment Insurance
– 20 CFR 652 Program Letter (UIPL)
• Trade Act Grant-Specific:
– 20 CFR 617, 618
• Annual Funding Agreement
• Social Security Act (UI)
• Grant Agreement
– 20 CFR 601-616, 625, 640, 650
• Statement of Work / SGA
Other: • State and Local Plans
• State laws, regulations & policies
• Local laws, regulations & policies
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16. Employment & Training Administration
Top Findings
• Not reporting expenditures on an accrued basis
• Failure to conduct monitoring
– Inconsistent treatment of findings and sub-recipients
• Lack of written policies & procedures
– Not following the above.
• Failure to report recipient share
• Weak Internal Controls
• Lack of documentation in participant files
• Procurement
• Governance
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17. Employment & Training Administration
Monitoring
Requirements &
Responsibilities
This isn’t your money, it’s the taxpayers’.
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18. Employment & Training Administration
Who watches the watchers?
• Federal
– Monitors the primary grantees (states)
– Review may occur at state, local and subrecipient level
• State (SWIB)
– Monitors the local areas (sub-recipients).
• Locals (LWIBs)
– Monitors One-Stop operators, service providers and
subrecipients.
• Office of the Inspector General
– Monitors everyone.
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19. Employment & Training Administration
Oversight Requirements & Credentials
• Federal
– WIA Sec. 183
– 29 CFR 97.42 / 29 CFR 95.53
• State (SWIB)
– 29 CFR 97.40 / WIA Sec. 136(f)(1)
– 20 CFR 667.400, 410
• Locals (LWIBs)
– WIA Sec. 117(d)(4)
– 20 CFR 667.410
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20. Employment & Training Administration
Documentation of Effort
• All monitoring activity must be documented
– Even if there are no findings
– If there isn’t a report, it didn’t happen
• Resolution of all findings must be documented
• Status of questioned costs must be documented
• Reports must be addressed to appropriate party
– State board, local board, etc.
• Monitoring procedures and resolution process must be
documented
• Recipients and subrecipients must receive equal treatment
– A finding is a finding.
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21. Employment & Training Administration
Governance 101
Because who does what and how they do it actually matters.
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22. Employment & Training Administration
State Board Membership & Meetings
• Most members are appointed by the Governor
– The Governor is a member of the State Board
– Board Chair selected by the Governor
– Most appointments based on recommendations from key groups
(unions, trade groups, etc.)
– Legislature appoints their own members
• Meetings must be open to the public
– Agenda must be published
– Minutes must be available for review
– Key votes must be recorded
• Conflict of Interest provisions must be in place and enforced
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23. Employment & Training Administration
State Board Roles & Responsibilities
• Lead policy-making body for the workforce investment system
– Policy-making under WIA is exclusively the role of the SWIB, not the
state workforce agency
• Oversight of the workforce system
• Development of the state plan
– Review of local plans
• Development of continuous improvement activities
• Designation of local areas
• Bi-annual certification of local boards
• Development of fund allocation formula
• Preparation of the annual report to the Secretary
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24. Employment & Training Administration
Local Board Membership & Meetings
• Members are appointed by the Chief Local Elected Official(s)
• Board Chair selected by the members (not the CLEO)
– Staff to the board reports to the board members (not the CLEO)
• Meetings must be open to the public
– Agendas must be published
– Minutes must be available for review
– Key votes must be recorded
• Lead policy-making body for the local workforce investment
system
– Local policy must not contradict state policy
• In multi-jurisdictional areas, there should be formal
agreements among the local elected officials
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25. Employment & Training Administration
Local Board Roles & Responsibilities
• Responsible for selection of One-Stop operators, service
providers and youth providers
• Responsible for oversight of the above
– In partnership with the CLEO
• Development of the local plan
– In partnership with the CLEO
• Development of the local budget
– In partnership with the CLEO
• Certification of one-stops
• Identification of training providers
• Negotiation of performance measures
• Connections and linkages with economic development and
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employers

26. Employment & Training Administration
Local Elected Official Roles & Responsibilities
• Appointment of members to the local board
– Does not appoint the chair or hire the executive director
• Participates on the board
• Serves as the local grant recipient
• Liable for any misuse of funds
• Selects a fiscal agent
• Approves the local plan
• Approves the local budget
• Does not directly select One-Stop operators or service
providers
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27. Employment & Training Administration
Resources
Let me Google that for you.
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28. Employment & Training Administration
On The Interwebs
• www.doleta.gov
• www.oig.dol.gov
• www.dol.gov/oasam/grants/grants.htm
• www.workforce3one.org
– etareporting.workforce3one.org
• www.gao.gov
• www.whitehouse.gov/omb
• www.nawb.org
• www.naswa.org
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29. Employment & Training Administration
QUESTIONS?
Comments or snide remarks also welcome.
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30. Employment & Training Administration
Region 1 New York State Team
NY State Lead Unemployment Insurance
Lee Reynolds John Murphy
reynolds.tricia@dol.gov murphy.john@dol.gov
Fiscal Performance
Phil Bombardier Christina Eckenroth
bombardier.phillip@dol.gov eckenroth.christina@dol.gov
Trade Discretionary
Tim Theberge Rochelle Layne
theberge.timothy@dol.gov layne.rochelle@dol.gov
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31. Employment & Training Administration
PRESENTED BY:
Timothy Theberge
theberge.timothy@dol.gov
617-788-0139
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