**UNITED STATES DEPARTMENT OF EDUCATION**

# THE SECRETARY

**MEMORANDUM**

TO:       The Chief Operating Officer

Federal Student Aid

FROM:The Secretary

SUBJECT:Delegations of Human Resources Authority

This memorandum establishes the delegations of human resources authority with respect to the operations of the Office of Workforce Support Services of Federal Student Aid (FSA) as it interacts and collaborates with the rest of the Department of Education (ED), including the Office of Management (OM).  It is designed to provide effective operating authority to the Chief Operating Officer (COO) of FSA and it supersedes all previous delegations of human resources authority to FSA.  Within 30 days after the signature of this memorandum, FSA will establish an action plan to implement the delegations described below and will then coordinate with OM to ensure a successful transition.  All delegations will be implemented within 180 days after the completion of the implementation action plan (210 days after the signature of this memorandum).  

1. In the exercise of all its functions, FSA is subject to the direction of the Secretary.  In addition, as provided in the Higher Education Act (HEA), each year FSA's performance is measured against its performance objectives as agreed with the Secretary in annual updates to its five-year performance plan.  [HEA, §141 (b)(1) and 141(c)]

2. FSA operates as a Performance-Based Organization (PBO) within ED and is responsible for administration of the information and financial systems that support student financial assistance programs, as set forth in the HEA.  

3. Because of its PBO status, FSA exercises, subject to the direction of the Secretary, independent control of its budgeted funds as allocated by the Secretary, its expenditures, personnel decisions and processes, procurements, and other administrative management functions.  [HEA,  §141(b)(4)]

4. Except as required by law and subject to the other provisions of this memorandum, FSA will be responsible and accountable for day-to-day implementation of personnel decisions and processes.  In the exercise of these human resources functions, FSA will abide by all applicable laws, regulations, collective bargaining agreements, and departmental policies and guidance, including specific personnel requirements necessary to comply with Department-wide initiatives (such as diversity recruitment or internal placement activities).

5. FSA may customize specific personnel policies tailored to the business needs of its line of business.  FSA will work with ED’s Personnel Director, who will assist the COO in reviewing and resolving legal sufficiency issues related to any such customized personnel policy.  FSA will obtain ED senior management approval for any FSA specific personnel policies (e.g., performance appraisal, awards, etc.).  FSA will notify OM/HRS of any modifications to personnel policies that it implements and provide copies of the modified policies for Departmental records.

6. Because of its PBO status, FSA is not subject to any ceiling relating to the number or grade of its employees.  Further, in consultation with other appropriate Departmental offices, the COO of FSA works cooperatively and effectively with the Office of Personnel Management (OPM) to develop and implement personnel flexibilities in staffing, classification, and pay that meet the needs of FSA subject to compliance with Title 5 of the United States Code, as required.  [HEA, §141(g)]  

7. FSA is authorized to establish an annual performance management system, subject to compliance with Title 5, United States Code and consistent with applicable provisions of law and regulations, which strengthens the organizational effectiveness of the PBO by providing for establishing goals or objectives for individual, group, or organizational performance (or any combination thereof), consistent with the performance plan of the PBO and its performance planning procedures, including those established under the Government Performance and Results Act of 1993, and communicating such goals or objectives to employees.

8. OM retains responsibility for the Equal Employment Opportunity (EEO) and Informal Dispute Resolution (IDR) functions.  FSA employees will continue to use the IDR Center for all informal processes related to EEO and administrative grievances.  FSA's bargaining unit employees may continue to elect the Collective Bargaining Agreement's Problem Resolution Procedure or the IDR Center process.  

9. The COO of FSA is delegated authority under ED's Personnel Manual Instructions to make decisions on a full range of personnel actions affecting FSA.  All official records, associated documentation, and human resources personnel actions, unless otherwise specified herein, shall be established, processed, and maintained by FSA.  Official Personnel Folders (OPF’s) will remain physically located within OM/HRS facilities; however, FSA staff will be responsible for the maintenance of, or establishment of new, OPF’s for FSA employees for all purposes related to the exercise of these delegations.  The COO of FSA is delegated the following authorities under ED's Personnel Manual Instructions to carry out FSA’s human resources activities and functions:

##### FSA Delegations of Human Resources Operating Authority

a. Detail FSA employees.

b. Approve Time-in-Grade Waivers.

c. Appoint up to the maximum number of Professional/Technical Employees permitted under FSA’s PBO legislation.

d. Carry out Merit Promotion Plan activities for FSA.

e. Make Superior Qualification Appointments.

f. Carry out Reductions-in-Force for FSA, in coordination with ED.

g. Approve of Telework Agreements (flexiplace).

h. Carry out all disciplinary actions and adverse actions (counseling, reductions in grade, removal, and all other adverse actions) for FSA.  FSA will consult with OGC on adverse actions of 14 days or more and reductions in grade and removals, including performance-based actions.

i. Establish Senior Level/Senior Technical pay (SL/ST pay).

j. Approve Grade and Pay Retention.

k. Manage Placement of Grade Retention Employees within FSA and approve exceptions to the placement requirements.

l. Approve Student Loan Repayments.

m. Approve overtime pay for GS-15s.

n. Administer the Voluntary Leave Transfer Program (VLT), approve an employee’s application to become a leave recipient and approve the donation of annual leave under ED’s VLT for ED employees.

o. Approve Recruitment Bonuses, Relocation Bonuses, and Retention Allowances. 

p. Handle FSA Employee Grievances.

q. Approve and effect non-discretionary actions.

r. Administer oaths of office upon entry of duty.

s. Approve and effect emergency appointments.

# Authorities Reserved for ED Under this Section

A. OM/HRS will continue to provide personnel services for the SES program to the entire Department, including FSA, to ensure consistent application of SES regulations, policies, and practices throughout ED.

B. OM/HRS will retain Department-wide PME authority, as appropriate.

C. OM/HRS will manage the Reemployment Priority Program.

D. OM/HRS will manage employee reemployment rights ED-wide.

E. OM will approve headquarters Dismissals and Agency Closing During Emergency Situations.

F. Workers’ Compensation will be coordinated with Management Services.

G. OM/HRS will conduct Selective Placement Program.

H. OM/HRS will process garnishment orders (payroll function).

10. The COO of FSA is delegated the authority to carry out the following **employee relations activities** not specifically covered by ED's PMIs:

###### FSA Delegations of Human Resources Operating Authority

a. FSA will, through ED’s existing contracts or other appropriate vehicles, provide FSA managers with counseling services to assist them in carrying out the following management responsibilities:  adverse actions; disciplinary actions; performance based actions; within grade denials; suitability determinations; reasonable accommodation determinations; medical issues; administrative grievances; management representation (unemployment hearings); settlement agreement negotiations; technical representative; case log; ethics report; leave administration; and training to FSA managers on this subject matter.  

b. FSA will schedule appropriate drug tests for FSA employees and order supplies using ED’s contracts.  FSA is currently assessed a charge back for the use of these services through ED’s existing contracts.  Ongoing use of these services will continue to be charged back to FSA.

c. FSA will review, approve, and process Quality Step Increases (QSI’s) for FSA employees in accordance with ED’s awards policy and government-wide regulatory requirements.

d. FSA will provide ongoing advice and assistance to FSA employees and managers and coordinate with Management Services on Workers’ Compensation issues. 

# Authorities Reserved for ED Under this Section

A. OM will administer FSA benefits programs, including:  health benefits open seasons; health fair; TSP open seasons and resultant presentations; disability retirements; military deposits; FERCCA processing; health and life insurance counseling and processing; death benefits counseling and processing; unpaid deposit/post 56 military deposits; long term care insurance; buyout processing; early out processing; Flexible Spending Accounts accounting; retirement calculations; processing retirements; and any other federal benefits programs which may evolve. 

B. OM will retain central management, operation and maintenance of the Employee Relations Tracking System.   FSA will continue to provide timely input and update to this Department-wide System for the Department to meet its reporting requirements.

C. OM will retain Department-wide administration of Employee Assistance Program (EAP) services.  FSA is currently assessed a charge back for the use of these services through ED’s existing contracts.  Ongoing use of these services will continue to be charged back to FSA.

11. The COO of FSA is delegated the following authorities to carry out **labor- management relations** activities:

###### FSA Delegations of Human Resources Operating Authority

a. Negotiate, in consultation with OM, mid-term agreements with the union that cover FSA employees only.  FSA must obtain the Secretary's approval of such agreements, as provided by law and ED's Collective Bargaining Agreement.   

b. Negotiate mid-term agreements, or establish policies, that are inconsistent with Department-level collective bargaining agreements, but only after obtaining approval from the Assistant Secretary for Management. 

c. Provide training and labor relations advisory services/technical assistance to FSA managers on FSA matters, in consultation with OM on interpretation of Department-level collective bargaining agreements and on matters with impact on principal offices other than FSA.  

d. Represent ED before arbitrators, the Federal Labor Relations Authority, and the Federal Service Impasses Panel in matters arising in FSA that clearly affect only FSA; decisions as to whether cases meet these criteria will be made on a case-by-case basis by OM.  OM will continue to receive unfair labor practice charges, arbitration requests, etc., and will maintain ED’s arbitration calendar.

12. The COO of FSA is delegated the following authorities to carry out **training and development** activities: 

**FSA Delegations of Human Resources Operating Authority**

a. Provide FSA new employee orientation, leadership, development, technical skills training and career counseling to FSA employees and managers in support of FSA’s Human Capital Management Plan and Annual Performance Plan.

b. Assess employee skills to determine skill gaps and/or developmental needs, and take appropriate actions to reduce skill gaps and improve performance.

c. Provide individual development planning services to FSA employees.

d. Develop special programs for addressing individual development and providing various learning interventions.  

e. Provide mentoring programs and/or services for FSA employees.

f. Collect and report ED training and development metrics data to OM, as required.

g. Coordinate tuition reimbursement for FSA employees in headquarters and regions with OM/HRS.

# Authorities Reserved for ED Under this Section

A. OM/HRS retains responsibility for providing department-wide services such as developing and updating mission critical occupation curriculum plans.   

B. OM/HRS will continue to centrally manage and provide computer technology training and implementation of e-Gov initiatives such as Go-Learn, Learning Management System (LMS), Employee Skills Inventory System (ESIS), and TRAINS.  

C. OM/HRS will continue to centrally manage and coordinate activities with ED’s Career Counselors in headquarters and regions.  

D. OM/HRS retains authority for ED-wide leadership development and training activities, such as the Executive Leadership Development Programs, Presidential Management Fellows’ Orientation (PMF), New Employee Orientation, Writing Performance Standards and management and supervisory training that is offered Department-wide.  If/when FSA establishes its own annual performance management system; FSA will develop and perform its own performance management training.  

E. OM/HRS retains responsibility for offering and managing Department-wide open enrollment courses such as presentation skills, writing skills, time management, pre-retirement, continuing professional education courses, off-the-shelf training courses, resume writing, interviewing skills, and career development assessment tools. 

F. OM/HRS retains responsibility for centrally managing tuition reimbursement Department-wide.

13. The COO of FSA is delegated the following authorities related to **classification, staffing, hiring, and compensation** not specifically covered by ED’s PMI's (currently performed in both OM/HRS Operations Teams and the Executive Resources Team): 

###### FSA Delegations of Human Resources Operating Authority

a. Implement new classification and qualifications standards in accordance with OPM and Department guidance. 

b. Appoint, promote, reassign, and realign employees under various authorities.

c. Appoint, reassign, and detail FSA Senior Managers and set rates of pay up to a maximum of Executive Level III.  

d. Establish pay rates for Professional/Technical employees in accordance with applicable laws and regulations.

e. Classify positions in accordance with OPM standards, guides and policies.  

f. Determine bargaining unit status, competitive levels, FLSA status and similar determinations for FSA positions.

g. Obtain authority from OPM to conduct Delegated Examining for competitive service positions and carry out Delegated Examining in accordance with OPM requirements.

h. Provide advisory services to FSA managers and employees. 

i. Establish entrance on duty dates and exchange preliminary employment data for employees transferring in or out of FSA.

j. Approve and appoint Experts and Consultants, including setting and adjusting pay.

k. Administer and approve Intergovernmental Personnel Act (IPA) assignments and completion of all applicable forms and documentation required for IPA agreements, including the certification of eligible organizations, coordinating the terms of the assignment agreement with external organizations, and establishing a formal written IPA agreement. 

l. Approve and effect performance bonuses authorized by PL 105-244, time-off awards, and cash awards based on special acts or services, adopted employee suggestions, and staff recognition for individuals and groups in amounts not to exceed $10,000.  Actions for employees assigned to positions in the Senior Executive Service are subject to the Secretary’s approval.

###### Authorities Reserved for ED Under this Section

A. OM’s Executive Office will retain overall authority to approve reorganizations within ED.  Proposed FSA reorganizations will be evaluated for legal sufficiency and overlap with other ED offices.

B. OM will grant employees length of service recognition. 

14. The COO of FSA is delegated the following authorities to carry out **work/life programs** not specifically covered by ED PMI’s:

###### FSA Delegations of Human Resources Operating Authority

a. Provide reasonable accommodation problem-solving and functional assessments for FSA employees and managers.

b. Provide advisory services to FSA managers and employees related to work/life programs.

###### Authorities Reserved for ED Under this Section

A. OM will retain overall responsibility for Telework program management and agency reporting requirements.

B. OM will continue to administer the Department-wide contract for Sign Language Interpreter services.

C. ED will retain central management of Section 504 Reasonable Accommodation funding.

D. ED will review and approve Child-care subsidy program applications and processing of invoices and payments for all participating ED employees.

15. The COO of FSA is authorized to undertake the following activities related to **human resources systems** and their operation: 

**FSA Delegations of Human Resources Operating Authority**

a. FSA will coordinate with ED to establish and administer the Federal Personnel Payroll System processes for FSA personnel and payroll transactions in FPPS, including establishment of a separate FSA Servicing Personnel Office (SPO) and the time and attendance (T&A) bi-weekly.

b. FSA will use the services of the Employee Express portal functionalities, especially for the bi-weekly receipt of the FSA employee Leave and Earnings Statements. 

c. FSA will produce FSA human resources management reports from data contained in FPPS. 

###### Authorities Reserved for ED Under this Section

A. OM shall retain overall responsibility for ED’s interagency agreement with ED of the Interior’s National Business Center for Federal Personnel and Payroll System (FPPS) services.  FSA is expected to continue funding its equitable portion of the DOI/NBC/FPPS Interagency Agreement.

B. OM shall retain the processing of Federal Employees Health Benefits (FEHB) Insufficient Fund cases and health benefits temporary continuation of coverage (TCC) requests for all ED employees.

16. **Processing and Records**:  The COO of FSA is authorized to:

**FSA Delegations of Human Resources Operating Authority**

a. Approve and sign Standard Form 50, *Notification of Personnel Action*, related to the delegated personnel authorities.

b. Approve and sign Standard Form 52, *Request for Personnel Action,*related to delegated personnel authorities.

c. Process payroll documents and benefits.

d. Maintain Official Personnel Folders, performance agreements, Employee Performance Folders, staffing case files, and all other human resources records related to the exercise of human resources delegations of authority in accordance with OPM and ED requirements.  FSA shall fully participate and support ED efforts to implement e-gov initiatives related to electronic personnel records and imaging of existing records as these initiatives are implemented across ED.  Official Personnel Folders for FSA employees will not be relocated from their current location, but designated on-site FSA staff will have full access to Official Personnel Folders for FSA employees equivalent to that of OM/HRS personnel.  OM/HRS will continue to have full access to these folders to administer for FSA those benefits specifically listed under paragraph 10.A. of this Delegations document.  

e. FSA is responsible for responding to the annual FSA HR employee survey of specific human resources data, as recommended by the Office of Inspector General FPPS Audit finding.

17. FSA will have authority under the approved delegation to determine what regional HR support will best meet its needs.  If FSA wishes to retain the on-site services of OM/HRS regional staff for FSA regional employees, an intra-agency agreement will be developed between FSA and OM specifying the regional HR services to be provided and detailing any variations from the headquarters delegations that may be necessary to provide regional HR services. 

These delegations of Human Resources Authority shall remain in place unless terminated or modified by the Secretary. 

______________/s/_____________

Margaret Spellings

OGC Concurrence and Date:  /s/ William Haubert, 1/9/2006

Certified on:  1/9/2006

Departmental Delegations Control Officer:  /s/ Naty G. Beetle

Control Number:  EA/EN/58

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