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1 Core Monitoring Guide April 2005 eta UNITED STATES DEPARTMENT OF LABOR EMPLOYMENT AND TRAINING ADMINISTRATION
2 Core Monitoring Guide April 2005 United States Department of Labor Employment and Training Administration
3 CORE MONITORING GUIDE PREFACE The development of the Core Monitoring Guide is an important part of the Employment and Training Administration s (ETA s) overall strategy to improve grant administration, specifically on-site monitoring of grantees. Improving grant administration is a crucial element of the Department of Labor s and ETA s management improvement plans supporting the President s Management Agenda. ETA s successful achievement of its Mission, Vision and Guiding Principles is premised on the delivery of high-quality, outcome-focused job seeker and business services through effective financial agreements with the state and local workforce system organizations. ETA has articulated a clear vision of the workforce development system that is demand-driven and fully integrated, and links employers to job seekers in order to promote the success of American workers and businesses. This Core Monitoring Guide ensures that our oversight and monitoring practices reinforce these principles while ensuring program outcomes are achieved and a high level of integrity is maintained. This guide provides a consistent framework and starting point for all on-site grant monitoring responsibilities by ETA. ETA has been moving forward in a coordinated effort to improve the consistency of oversight while relying on and providing opportunities for Federal Project Officers (FPOs) to bring their professional judgments and experience to the process. This effort began with the issuance of Employment and Training Order in April 2003, and continued with the development of the Grants E-Management System, increased commitment to FPO training, and, now, this Core Monitoring Guide. The Core Monitoring Guide has been developed based on the premise that there are essential core functions that must be in place in order for any grantee to operate an ETA grant within the boundaries of acceptable practices that are established primarily by law, regulation, and/or government-wide rule. In addition, ETA plans to develop program-specific guides which will complement the Core Monitoring Guide and add program specific review objectives and indicators. Combined, these guides will become an integral part of an FPO tool kit. However, for those ETA grants (e.g., earmarks, pilots and demos, etc.) where there may be no program specific guide, the Core Monitoring Guide would remain the primary tool for review. Since this guide is generic, it is limited to an examination of basic core activities that are found in all ETA grants and is intended to provide an examination of the readiness and capacity of the grantee to operate the grant. The generic quality of the guide also means that the legislative authority for compliance requirements is limited to those requirements that apply to all ETA grants. These are typically found in Office of Management and Budget circulars and the terms and conditions specific to each grant, but the guide also includes expectations for services or operations that are generally accepted practice across ETA. This guide is the outcome of many different individuals and offices within ETA working together to produce the best possible product to meet a diverse set of needs. The guide is intended to be continually reviewed and updated based on experience, practice, and changing requirements. i
4 TABLE OF CONTENTS General Instructions 1 Core Activity 1: Design and Governance 1-1 Objective 1.1: Strategic Planning 1-2 Objective 1.2: Service Design 1-5 Objective 1.3: Program Integration 1-8 Core Activity 2: Program and Grant Management Systems 2-1 Objective 2.1: Administrative Controls 2-2 Objective 2.2: Personnel 2-5 Objective 2.3: Civil Rights 2-7 Objective 2.4: Sustainability 2-9 Objective 2.5: Match Requirements 2-10 Objective 2.6: Equipment 2-12 Objective 2.7: Procurement 2-13 Objective 2.8: Audit and Audit Resolution 2-14 Objective 2.9: Reporting Systems 2-16 Core Activity 3: Financial Management Systems 3-1 Objective 3.1: Budget Controls 3-2 Objective 3.2: Cash Management 3-3 Objective 3.3: Program Income 3-4 Objective 3.4: Cost Allocation 3-5 Objective 3.5: Allowable Costs 3-7 Objective 3.6: Internal Controls 3-8 Objective 3.7: Financial Reporting 3-9 Core Activity 4: Service/Product Delivery 4-1 Objective 4.1: Operating Systems 4-2 Objective 4.2: Participant Files 4-3 Objective 4.3: High-growth Jobs 4-8 Objective 4.4: Integrated Services 4-10 Objective 4.5: Business Relationships 4-12 Core Activity 5: Performance Accountability 5-1 Objective 5.1: Service Goals 5-2 Objective 5.2: Performance Outcomes 5-6 Objective 5.3: Subrecipient Performance 5-8 Objective 5.4: Performance Data 5-10 ii
5 Appendices A-1 Appendix A: Cross Reference of Administrative Requirements A-1 Appendix B: Selected Definitions and Acronyms B-1 Appendix C: Summary of Cost Items C-1 iii
6 General Instructions INTRODUCTION This guide should be used as a component of an overall grant management strategy or work plan developed by each regional or national office responsible for grant oversight. This work plan should incorporate the ETA Grants E-Management System (GEMS) risk assessment process, Core Monitoring Guide, and program-specific monitoring tools to efficiently address oversight priorities. The assigned risk category, as specified in GEMS, alerts ETA of possible problems that jeopardize grant integrity and performance. The use of the Core Monitoring Guide can confirm the extent of the risk and the core functions that are affected. The Core Monitoring Guide will be the basis of monitoring activities for all ETA programs. The guide has been developed to provide Federal staff with a tool that may be used to review any ETA funded grant activity. Program-specific monitoring tools will be developed to supplement the Core Monitoring Guide and will be used to determine compliance with specific program requirements and identify promising practices and exemplary program models. The Core Monitoring Guide is anticipated to be available to the Federal Project Officers (FPOs) in an electronic format so that it may be customized as needed by the FPO to more effectively monitor different types of grantees. HOW THE GUIDE IS ORGANIZED This guide is organized around five generic core activities: design and governance; program and grant management systems; financial management systems; service delivery; and performance accountability. Each core activity is, in turn, organized around generic requirements that were derived from legislation, regulations, or promising practices that relate to that core activity. These requirements or expectations are called objectives. Each objective is followed by indicators. Indicators are those attributes or criteria that attest that the objective or requirement is being met. The indicators are marked with a (C) for compliance indicators that must be met or an (E) for effectiveness indicators. Each indicator comes with FPO guidance on how to assess the indicator and a space to add notes or indicate the sources of information used in your assessment. Each section begins with general instructions relevant to the core activity. The first page of each section also contains space for summarizing the monitoring results. Each objective for the core activity, including the citations for the authoritative source of core requirements, follows with its associated indicators and FPO guidance. The appendices contain resource materials that are referenced in the guide. The reference materials include a list of definitions for terms found in the guide or requirement, a cross reference of administrative requirements and a chart detailing allowable cost standards. PREPARING FOR AN ON-SITE VISIT Gather background materials. The guide is designed to be used in the field. To prepare for the site visit, review the guide and identify documents called for as reference documents for the grantee GENERAL INSTRUCTIONS 1
7 organization. In addition, familiarity with the operations of the grantee can make the on-site visit and monitoring process more efficient. This may be accomplished by reviewing the grants, financial and programmatic reports, past monitoring reports, and audit summaries. Parts of the guide, such as the calculation of actual performance, can be completed prior to the on-site visit using data contained in the reports and grant documents. List questions that may arise as to how the grantee is organized, relationships with subrecipients, and the location of documents and staff who will be sources of information for the monitoring visits. Coordinate guide with data sources. The guide is organized around key topics called core activities, not around sources of information. As stated above, each core activity is organized around objectives that must be met by the grantee organization and indicators used to assess the grantee s accomplishment of the objective. The reviewer must plan how interviews will be organized to maximize grantee staff availability and avoid going back and forth between agencies, departments, or personnel. This might be done by marking the guide so that questions for a particular set of respondents are easily located. You may also rely upon the FPO guidance portions of each indicator that identify sources of information to develop a listing of source documents you wish the grantee to have available for your review. This list can be sent to the grantee so that arrangements can be made to have staff and documents ready for your visit. USE OF THE GUIDE ON-SITE FPO Guidance. Each indicator comes with guidance for determining if the indicator is present and will often contain sources of information you may wish to review. This guidance can be supplemented with other methods for documenting the existence of an indicator. There are questions listed below the guidance that you might use to begin your assessment of whether the indicator is present. These questions are provided as a means to begin your research. You may use these questions, expand upon their use or employ other means of assessing the grantee s performance. Check the box provided in the summary of indicators to show that the indicator is present. Use the space provided in each separate indicator to record the information or information source that was used to make your determination. The boxes for each indicator are expandable in the electronic version. Record your notes and specific findings at the indicator level, so that if questions arise later you have a means for recreating the basis for your determination. Objective Conclusions. Based upon your review of the indicator(s), you will need to determine if the objective has been met. If there are multiple indicators for an objective, you will need to base your decision as to whether the objective has been met on the relative importance of the indicators and if there is a compliance factor involved. Summary of Findings for Core Activity. On the first page of each section is space for summarizing the findings for the core activity. Specifically, the summary is organized around: Promising Practices Findings or High-Risk Factors Other Observations This summary section is designed to assist you with the development of your written report. Each section is designed to provide for a short sentence or description of grantee processes or program design elements GENERAL INSTRUCTIONS 2
8 that would be addressed in your written report. Promising Practices are those processes that you believe, based on your review, to be effective in operation and that you would recommend to another grantee. You would summarize or list the compliance findings under Findings or High-Risk Factors. The Other Observations section may be used to document additional information about the grantee organization or operation you wish to include in your written report, including a discussion of effectiveness objectives and/or indicators that have not been met. There should be links between this summary and notes and conclusions recorded for objectives and indicators. USE OF THE RESULTS IN THE REPORT Once the on-site review has been completed, the guide is to be used to develop the report to the grantee. The report must address all compliance findings. While there is no prescribed format for the report, each report should include the following, at a minimum: Background this section would cover the details of the review, when it was conducted, staff interviewed, etc. Results of the review this section would address each issue listed in the summary tables at the beginning of each core activity and be organized to provide the grantee with appropriate detail related to Promising Practices, Findings or High-Risk Factors, and Other Observations. All violations of compliance requirements would be considered as Findings or High-Risk Factors. Each finding should contain a description of the compliance violation, the cause of the violation if known, the citation supporting the finding as a compliance issue, and the requirement for appropriate corrective action by the grantee, including time frames for completion. Promising Practices would detail those practices or processes that are particularly effective or efficient and/or may be replicated. Other Observations would detail those grantee activities related to effectiveness objectives or indicators that have not been met. The report is to be structured around the objectives of each core activity and any findings or other information must be related to a specific objective number. Summary this section of the report would summarize for the grantee the promising processes or practices that have been identified during the review, findings of non-compliance with required corrective action, and any other observations about the grantee operations related to a specific objective. This summary would be based on the list or description of issues that were itemized in the summary section for each core activity. Anticipated follow up for any issues identified in the review should also be addressed. Subsequent to the review, the results of using the guide in conducting the review are to be entered into GEMS at the objective level for each core activity. GENERAL INSTRUCTIONS 3
9 CONCLUSION The Core Monitoring Guide is intended to be used to review the fundamental processes and procedures generally applicable to all ETA-funded grant activity. There will be instances, however, where the objectives or indicators do not apply to the specific grant or grants that you are reviewing. The guide may be customized to best fit your needs as the FPO in conducting the review and those objectives or indicators that are not reviewed may be marked as non-applicable. The guide will also be available electronically, and you may excerpt for your on-site use those objectives and/or indicators that apply specifically to the type of grant(s) you are reviewing. The guide may also be supplemented with documentation, applicable notes, or a more lengthy discussion of findings. Any additional materials obtained during the review or additional pages of discussion need to be maintained with the review guide. The completed guide becomes part of the documentation for the monitoring report that should provide the reader with a clear understanding of the reviewer s reasoning for conclusions drawn. The guide also provides the detail that may be needed to articulate specific corrective actions. GENERAL INSTRUCTIONS 4
10 CORE ACTIVITY 1 DESIGN AND GOVERNANCE Core Activity 1 addresses design and governance principles that can guide and support the grantee s strategy for developing a demand-driven workforce system. A demand-driven system is one which meets the needs of employers by developing a qualified and competitive workforce while preparing job seekers for the jobs and careers of the future. CORE ACTIVITY 1 GENERAL INSTRUCTIONS The purpose of Core Activity 1 is to evaluate the grantee s program design and governance in the context of a demand-driven system. The reviewer looks at how the grantee designs its programs to provide the tools and products that support business growth and economic development, to provide services that prepare workers to take advantage of job opportunities in high-growth and high-demand occupations, and to provide services to the employer and job seeker within an integrated service delivery system. The reviewer looks at governance in the context of how leadership is identifying the workforce needs in highgrowth and economically-critical industries and the preparation required of workers to succeed in those occupations, as well as understanding the workforce challenges that must be addressed to ensure a prepared and competitive workforce. Summary of Findings for Core Activity 1 Other Observations Findings or High-Risk Factors Promising Practices CORE ACTIVITY 1 DESIGN AND GOVERNANCE 1
11 OBJECTIVE 1.1 Strategic Planning: Grantee organization has developed a strategic approach to meeting business and industry s need for a prepared and competitive workforce and becoming a demand-driven organization. Summary of Indicators 1.11 The grantee has consulted with business leadership from the state and local area in forming its strategy for creating a demand-driven workforce system. E 1.12 The grantee has developed a vision and strategy to become a demand-driven organization. E 1.13 The grantee functions as a partner with the public workforce system, business and industry, economic development agencies, and education and training providers. E 1.14 The grantee has identified for its area the high-growth businesses and industries, their workforce needs, and the skills and competencies needed to perform jobs in these key business areas. E Indicator 1.11 (E) The grantee has consulted with business leadership from the state and local area in forming its strategy for creating a demand-driven workforce system. FPO Guidance: Interview grantee leadership, and ask the following questions as they apply to the grant you are reviewing. Is the grantee aware of the State Workforce Board s policy direction for creating a demanddriven system? Has it patterned its own policy after the State Board s? Has the grantee consulted with the local workforce investment board (LWIB) in developing a coordinated approach for meeting business and industry s need for a qualified and competitive workforce? Is the grantee s strategy consistent with the LWIB s regional strategy for creating a demanddriven workforce system? Does the grantee organization have significant business representation on its own board to advise it on how best to serve business needs and interests? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 2
12 Indicator 1.12 (E) The grantee has developed a vision and strategy to become a demand-driven organization. FPO Guidance: Review the grantee organization s vision, mission, strategy, and action planning documents; compare these with the vision described by ETA; interview the leadership of the grantee. Does the grantee have a written vision statement? Does it have a written strategy for achieving its vision? Are all grantee staff knowledgeable about the grantee organization s demand-driven vision and strategy? What training has been provided to staff regarding the demand-driven approach? What objectives and goals has the grantee organization established to help it assess progress toward fulfillment of its strategic vision? How are the goals and objectives expressed in the grant compatible with the grantee s strategic vision? Indicator 1.13 (E) The grantee functions as a partner with the public workforce system, business and industry, economic development agencies, and education and training providers. FPO Guidance: Interview grantee management. What role does each organization and institution play with respect to industry and business? What knowledge, resource, and skills does each organization bring to the network? How does the grantee organization serve as a partner within the network? What organizations and institutions comprise the grantee organization s network? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 3
13 Indicator 1.14 (E) The grantee has identified for its area the high-growth businesses and industries, their workforce needs, and the skills and competencies needed to perform jobs in these key business areas. FPO Guidance: Interview the leadership of the grantee or primary staff responsible for the analysis; examine the sources of Labor Market Information (LMI) used by the grantee organization. Has the grantee organization determined which industries/sectors/clusters/segments and businesses are high-growth businesses that are key to the economic well being of its area? What factors did it consider and what information sources did it use to make this determination (e.g., LMI from the state, economic development agencies, chambers of commerce, business groups, trade associations, and community audits)? What are the market opportunities and workforce needs of the key industries/sectors/clusters/segments and key businesses in the grantee s area? Has the grantee identified the skills and competencies needed to successfully perform the current and future jobs available in its key industries and businesses? How did the grantee involve the business community in making these determinations and validating these conclusions? Has the grantee used this information to market its services to the job seeker and employer community? Does the grantee have a process for staying current with trends affecting major industry and business customers? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 4
14 OBJECTIVE 1.2 Service Design: The grantee organization has designed a service delivery system to accomplish its strategic objectives for becoming demand-driven. Summary of Indicators 1.21 The grantee has identified the resources available to it and the products and services it can offer to the business customer. E 1.22 The grantee has a policy and practice of having its business services staff interact and coordinate with the job seeker services staff to provide human resource solutions. E 1.23 The grantee determines the value and effectiveness of its services to business and industry. E 1.24 The grantee leverages the system s resources to broaden their impact. E Indicator 1.21 (E) The grantee has identified the resources available to it and the products and services it can offer to the business customer. FPO Guidance: Interview grantee management. What are the resources available to the grantee organization within its own organization? What resources does the grantee organization have (e.g., dollars, services, skills, and expertise)? What services does the grantee have the potential to offer? What resources does the grantee organization have access to (through partners, contributors, or vendors)? What are the products and services the grantee organization intends to deliver to its targeted industries/sectors/segments/clusters? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 5
15 Indicator 1.22 (E) The grantee has a policy and practice of having business services staff interact and coordinate with job seeker services staff to provide human resource solutions. FPO Guidance: Interview staff responsible for providing business and job seeker services. How do the grantee s business services staff and job seeker services staff coordinate to assure business customers receive the services designed to meet their needs and solve their problems? How are job seeker services and job seeker service providers made aware of specific business needs/ requirement/opportunities? Indicator 1.23 (E) The grantee determines the value and effectiveness of its services to business and industry. FPO Guidance: Interview grantee staff who obtain direct feedback from employers. Review survey responses or other information the grantee has received from employers which assess the value of services received. How does the grantee assess the value and effectiveness of its service to business and industry? What solutions do industry and the business community believe the grantee organization is capable of providing? Which of these have actually been provided? What is the value of the grantee s services from the business customers perspective? How does the grantee obtain this perspective? Has the demand-driven service delivery approach improved the grantee organization s position in the eyes of business? Has it opened up new opportunities for the grantee organization to provide services to businesses? What effect has demand-driven services had on basic operations and services (e.g., job listings, screening, or referrals)? What has been the effect on other services and operations (e.g., assessment or training)? What effect has demand-driven service delivery had on the grantee s performance in general and the specific performance goals contained in the grant? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 6
16 Indicator 1.24 (E) The grantee leverages the system s resources to broaden their impact. FPO Guidance: Interview the leadership of the grantee; examine the sources of information and mechanisms (e.g., Memorandum of Understanding (MOU) used by the grantee to leverage resources). How does the grantee organization determine the resource requirements for the business services function? What other functions, in addition to business functions, are critical to providing successful solutions to businesses? What organizations and institutions provide resources (e.g., services) directly supportive of the grant s results? What key relationship has the grantee organization developed with strategic partners to accomplish its demand-driven goals? How is the network used by the grant organization to leverage resources and create solutions for its business customers? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 7
17 OBJECTIVE 1.3 Program Integration: Integration is supported, codified in policy, measured, and evident at the leadership level of the workforce system in which the grantee operates. Summary of Indicators 1.31 The grantee organization and its senior level leadership support program integration into the larger workforce investment system. E 1.32 Integration is used to define policies, systems, and service design that reduce duplication, maximize the reach of resources, ensure appropriate customer service across funding streams, and reduce administrative overhead. E Indicator 1.31 (E) The grantee organization and its senior level leadership support program integration into the larger workforce investment system. FPO Guidance: Interview grantee staff. Review grantee policies to determine how they support integrated approaches to system design and service delivery, and how the grantee links to the larger workforce investment system. Has the leadership of the grantee developed a vision that outlines workforce needs and priorities of the core customers (job seeker and employer)? Do required leadership councils, including workforce boards, boards of directors, or operators, have active representation from key partners and stakeholders? Has the leadership of the grantee established an operational framework that coordinates activities with other workforce investment partners in the community? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 8
18 Indicator 1.32 (E) Integration is used to define policies, systems, and service design that reduce duplication, maximize the reach of resources, ensure appropriate customer service across funding streams, and reduce administrative overhead. FPO Guidance: Interview grantee staff. Review grantee policies to determine how they support integrated approaches to system design and service delivery, and how the grantee links to the larger workforce investment system. Does the coordination reduce administrative duplication? This might include the consolidation of department heads, cabinets, fiscal units, and/or performance units. Has grantee leadership issued policies, memoranda, or directives that require and support integration of services with other partner programs? Does grantee actually track the progress of integration and report to decision-makers periodically? Do grantee planning and work documents outline how integration with other programs will be accomplished and have measurable success indicators related to integration? CORE ACTIVITY 1 DESIGN AND GOVERNANCE 9
19 CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS Program and grant management systems support grant functions or activities that are necessary for the operation of a project but are not related to the direct provision of services. These grant functions include personnel, administrative and oversight, management information, and reporting systems. Those functions NOT incorporated in Core Activity 3 Financial Management Systems are incorporated herein. In addition, activities are included when their purpose is to ensure compliance with applicable statutory, regulatory, and grant requirements common to all ETA grants. CORE ACTIVITY 2 GENERAL INSTRUCTIONS The purpose of the Core Activity 2 monitoring component is to evaluate the grantee s capacity to perform the broad management functions that are required when operating federally funded workforce development grants. During this phase of monitoring, you will focus on nine program and grant management systems. Each objective focuses on a separate system or requirement and includes one or more indicators to assist in determining if the objective has been met. To prepare for monitoring these core management functions, review the referenced authoritative citations that are in Appendix A. The appendix contains outlines of the compliance requirements that provide a quick reference for use in the field. Summary of Findings for Core Activity 2 Other Observations Findings or High-Risk Factors Promising Practices CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-1
20 OBJECTIVE 2.1 Administrative Controls: Administrative Controls are sufficient to ensure grant integrity [29 CFR 97.40; 29 CFR Part 95]. Summary of Indicators 2.11 The organization maintains policies and procedures for core management functions and program operations. C 2.12 Written monitoring tools and procedures are used to monitor all elements of the grant Statement of Work (SOW) against performance objectives and compliance with uniform administrative requirements. Monitoring tools and procedures are appropriate for subrecipient monitoring. E 2.13 The organization maintains written documentation including monitoring reports, findings, corrective actions, and resolutions for each grant monitored. E 2.14 Record retention policies that meet the requirements of applicable Federal laws and regulations are in place and followed. (Appendix A contains additional information on these requirements.) C Indicator 2.11 (C) The organization maintains policies and procedures for core management functions and program operations. FPO Guidance: Interview the primary staff responsible for the development and issuance of policy. What determines that a policy is needed? Are there areas in which the need for policy has not been addressed? What is the process for developing and issuing policies? Is it followed? Who is on the distribution list? How is the list developed and maintained? Are all grantee policies currently in force included in the written record? Source s and Notes: CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-2
21 Indicator 2.12 (E) Written monitoring tools and procedures are used to monitor all elements of the grant SOW against performance objectives and compliance with uniform administrative requirements. Monitoring tools and procedures are appropriate for subrecipient monitoring. FPO Guidance: Review monitoring tools, e.g., protocols, manuals, and general instructions that relate to program monitoring. Compare these documents to the grant goals and the applicable Federal requirements. In terms of content, is the information reviewed in the monitoring tools aligned to both individual grant goals and the Federal requirements? If not, what is missing? Are the monitoring protocols and instructions clear and adequate to guide the monitoring process? Are the monitoring tools adaptable to all grants, or are there individual tools for each grant and subrecipient? How does the grantee develop its subrecipient monitoring schedule? Is it followed? Does there appear to be an assignment of risk to either subrecipients or to grants operated by the grantee? What is the basis for determining high-risk/low-risk levels? Are all elements of every grant and subgrant SOW monitored on at least an annual basis? Indicator 2.13 (E) The organization maintains written documentation including monitoring reports, findings, corrective actions, and resolutions for each grant monitored. FPO Guidance: Review all written documentation related to the grantee s monitoring activities, especially monitoring reports for the past year. Interview monitoring supervisor for clarification of any inconsistencies between the records and the information provided above. Are there any discrepancies between the records and the monitoring process and tools that were reviewed above? If so, what accounts for those? Are corrective actions followed-up? Are there any examples of how monitoring has led to corrective actions that either averted misuse of funds or resulted in improvements to program quality or efficiency? Is there a pattern in the records that shows: monitoring procedures were not properly followed or inconsistently applied; or other weaknesses in monitoring and oversight? CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-3
22 Indicator 2.14 (C) Record retention policies that meet the requirements of applicable Federal laws and regulations are in place and followed. (Appendix A contains additional information on these requirements.) FPO Guidance: Review the grantee organization records retention and access policy. Interview staff responsible for record retention. Is the policy in compliance with applicable Federal laws and regulations? Ask for any clarification needed based on the review of the written policy document. Does it appear the written records retention and access policy reflect actual grantee organization practice? Is the physical location of the space used for record retention adequate and accessible? If records are in an electronic medium, is the medium likely to be outdated in three years and not accessible? CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-4
23 OBJECTIVE 2.2 Personnel: The management structure and staffing of the grantee organization are aligned with the grant SOW and designed to assure responsible general management of the organization [OMB Circular A-87 Attachment A.2.a; OMB Circular A-122 Attachment A.2.a]. Summary of Indicators 2.21 A current written personnel policy (including hiring process and procedures) that meets the requirements of applicable Federal laws and regulations is on file and in force. (Appendix A contains additional information on these requirements.) C 2.22 An organizational chart and job descriptions illustrate a staffing structure that is sufficient to perform grant management functions and implement the grant SOW. E 2.23 Organizational chart staff positions are filled with individuals that possess the qualifications indicated on job descriptions. E Indicator 2.21 (C) A current written personnel policy (including hiring process and procedures) that meets the requirements of applicable Federal laws and regulations is on file and in force. (Appendix A contains additional information on these requirements.) FPO Guidance: Review the personnel policy of the grantee organization. Interview staff responsible for personnel or human resources for the organization. Review a listing of the grantee organization s job openings for the past 12 months. Is the policy in compliance with applicable Federal laws and regulations? (Refer to Appendix A to reference requirements.) Does it appear the written personnel policy reflects current grantee organization practice? Do records indicate that hiring procedures were conducted according to the grantee s organization personnel policy? Do procedures for hiring personnel pose an impediment to meeting grant implementation schedules? Are there any examples of how hiring delays caused by grantee organization hiring procedures impeded project startup or implementation? Source s and Notes: CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-5
24 Indicator 2.22 (E) An organizational chart and job descriptions illustrate a staffing structure that is sufficient to perform administrative functions and implement the grant SOW. FPO Guidance: Review the grantee organizational chart. Interview the executive staff person responsible for the direction and management of the grantee organization. Does the organizational chart present a staffing structure that provides capacity for the key functions such as: Executive Fiscal Management Information Systems Program Operations Are there any gaps evident in the grantee organization management and staffing structure? Review job descriptions for one or two primary staff responsible for performing key grant functions. Do the job descriptions delineate responsibilities, duties, and required experience, skills, and qualifications that clearly describe the expectations and requirements of the positions in order to provide grantee organization capacity in these key functional areas? If the grant contains specific staffing requirements, review a written description of the current staffing pattern and compare this information with staffing patterns as described in the grant contract. Are the current project staffing patterns in accordance with the grant contracts? If there are deviations, how are they being addressed? Indicator 2.23 (E) Organizational chart staff positions are filled with individuals that possess the qualifications indicated on job descriptions. FPO Guidance: Review documentation that lists organizational chart positions, qualifications for the positions as delineated on job descriptions, and the qualifications of staff currently employed in each position. Note: you may be required to compile the list from grantee source documentation. You may also choose a sample to document. Are positions currently filled with individuals that possess the qualifications indicated on job descriptions? If there are deviations, how are they being addressed? CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-6
25 OBJECTIVE 2.3 Civil Rights: Recipients of financial assistance from the DOL must comply with applicable Federal Civil Rights laws [Title VI, Section 504 of the Rehabilitation Act of 1973; Title IX, Age Discrimination Act of 1975; Section 188 of the Workforce Investment Act; 29 CFR Part 31; 29 CFR Part 32; 49 CFR Part 25; 29 CFR Part 35; and, 29 CFR Part 37, respectively]. Note: all findings and observations need to be shared with the Civil Rights Center. Summary of Indicators 2.31 Policies and procedures developed in accordance with applicable laws and regulations are in place that demonstrate the grantee s commitment to the principles of the laws and regulations. (Appendix A contains additional information on these requirements.) C 2.32 Notices (in languages appropriate to the populations served) are visibly posted to inform staff, project participants, and service providers of the discrimination complaint process, Equal Opportunity (EO), and Section 504 policies. C 2.33 The grantee location and facility, or part of the facility, is physically accessible to and usable by disabled individuals. C Indicator 2.31 (C) Policies and procedures developed in accordance with applicable laws and regulations are in place that demonstrate the grantee s commitment to the principles of the laws and regulations. (Appendix A contains additional information on these requirements.) FPO Guidance: DOL financial assistance recipients must comply with these Federal Civil Rights laws: Title VI Civil Rights Act of 1964 Section 504 Rehabilitation Act Title IX, Education Amendments Act of 1972 Age Discrimination Act of 1975 Section 188 of the Workforce Investment Act Interview the grantee s EO officer and/or staff assigned responsibility for ensuring the organization s compliance with these laws. CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-7
26 Does the organization have a written discrimination complaint procedure? Does the organization use wording required by 29 CFR in publications, materials, and brochures? Does the organization have a system for periodically monitoring their compliance with the EO law? Does the organization prominently post an EO Is The Law notice with wording mirroring 29 CFR 37.30? CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-8
27 Indicator 2.32 (C) Notices (in languages appropriate to the populations served) are visibly posted to inform staff, project participants, and service providers of the discrimination complaint process, EO, and Section 504 policies. FPO Guidance: Observe the notices that the grantee organization has posted to inform individuals of their rights related to complaints regarding compliance with EO and Section 504. Does the EO Is The Law (see 2.31 bullet) notice provide contact information for the grantee organization s EO officers, an overview of the discrimination complaint process, and how complaints may be filed? Are notices prominently posted in a reasonable number of places to include administrative and service delivery areas, and are they available in appropriate formats to individuals with visual impairments? If a significant number of the population eligible to be served speaks a language or languages other than English, has the grantee organization taken reasonable steps to provide the notice in the appropriate language(s)? Do employment notices, participant recruitment flyers, or other written materials published by the grantee contain a statement providing the required written EO notice? Indicator 2.33 (C) The grantee location and facility, or part of the facility, is physically accessible to and usable by disabled individuals. FPO Guidance: Do a walk-through of the grantee organization facility. Does the location and facility meet physical access requirements? (Refer to Appendix A to reference requirements.) CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-9
28 OBJECTIVE 2.4 Sustainability: If required, there is a viable plan for sustaining grant activities for those grants whose funds are scheduled to expire [Statement of Work (SOW)]. Note: not applicable to formula grants. Summary of Indicators 2.41 The organization has identified resources that will support project activities after the grant expires. E 2.42 A plan is in place for continuation of services to participants who have not completed the program by the end of the grant period. E Indicator 2.41 (E) The organization has identified resources that will support project activities after the grant expires. FPO Guidance: Interview a number of grantee organization project directors. How does project staff work to secure resources to sustain project activities after the expiration of a Federal grant? Can the staff cite resources that have been identified to support project activities after the grant expires? Does it seem likely that project activities will continue after the grant expires? Indicator 2.42 (E) A plan is in place for continuation of services to participants who have not completed the program by the end of the grant period. FPO Guidance: Interview a number of grantee organization management and operations staff. CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-10
29 Have the staff describe, in general, how they work to ensure that project participants who are active at the end of a grant period have continued access to services so that participants can achieve their goals? If the grant is about to end, how will services continue to be available to participants who have not completed the program by the end of the grant period? Does it seem likely that participants will have continued access to services? OBJECTIVE 2.5 Match: If applicable, policy and procedures to meet grant match requirements are met [27 CFR 95.23; 29 CFR 97.24]. When applicable, the organization provides for the use of leveraged resources. Summary of Indicators 2.51 Written policy and procedures that describe grant match requirements, allowable match, and methods for tracking match have been issued to all parties affected. C 2.52 When applicable, the organization maintains a system to calculate and track the use of leveraged resources. E 2.53 Records are available and demonstrate that match is being tracked. C Indicator 2.51 (C) Written policy and procedures that describe grant match requirements, allowable match, and methods for tracking match have been issued to all parties affected. FPO Guidance: Review the grantee organization s written policy and procedures for grant match and interview staff responsible for documenting match. Does the policy address match requirements, costs and contributions allowable to meet match requirements, and methodology for tracking and documenting match? Does it appear that the written match requirement policy and procedures reflect actual grantee organization practice? Source s and Notes: Indicator 2.52 (E) When applicable, the organization maintains a system to calculate and track the use of leveraged resources. CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-11
30 FPO Guidance: Review the grant to determine if the use of leveraged resources is required to support grant activity. Ask to review the process used by the grantee organization to determine the calculation of leveraged resources. Interview staff responsible for documenting the use of leveraged resources. Does the organization have a written process to define and track the use of leveraged resources? If not, how does the grantee track their use? Does the organization appropriately report the use of leveraged resources in their performance reports? Source s and Notes: CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-12
31 Indicator 2.53 (C) Records are available and demonstrate that match is being tracked. FPO Guidance: Review financial records that document required match grant(s) being operated by the grantee organization. Are costs and third-party in-kind contributions that are being counted toward satisfying the match requirement verifiable from the financial records? Do records indicate the extent to which match is being tracked? CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-13
32 OBJECTIVE 2.6 Equipment: Grantees who purchase equipment with grant funds have a system in place, including written policies and procedures, to ensure it receives written approval prior to purchasing equipment. The grantee maintains a property management system in accordance with requirements [29 CFR and 29 CFR 97.32]. Summary of Indicators 2.61 The grantee has a system for the acquisition, management, and disposition of equipment purchased with grant funds. C 2.62 The grantee has sought and received approval prior to purchasing equipment and has written evidence of prior approval received for items of equipment it has purchased with grant funds. C Indicator 2.61 (C) The grantee has a system for the acquisition, management, and disposition of equipment purchased with grant funds. FPO Guidance: Review the organization s policies and procedures on purchasing, managing, and disposing of equipment. Do they have policies and procedures? If not, how do they comply? Does the organization maintain an inventory of equipment purchased with ETA funds? Source s and Notes: Indicator 2.62 (C) The grantee has sought and received approval prior to purchasing equipment and has written evidence of prior approval received for items of equipment it has purchased with grant funds. FPO Guidance: Ask the organization how and when it obtains approval for purchasing equipment. Request evidence that the organization has sought and received written approval prior to purchasing equipment. Document their responses to your inquiries and the extent to which they are in compliance with this indicator. How and when does the organization obtain approval for the purchase of equipment? CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-14
33 OBJECTIVE 2.7 Procurement: All procurement actions are conducted in a manner that provides for full and open competition [29 CFR 97.36; 29 CFR ]. Summary of Indicators 2.71 The organization follows their own procurement procedures which reflect applicable state and local laws and regulations, provided that their procurements conform to applicable Federal laws and standards. C 2.72 The organization maintains a system for the administration of contracts, including appropriate contract or subrecipient clauses. C Indicator 2.71 (C) The organization follows their own procurement procedures which reflect applicable state and local laws and regulations, provided that their procurements conform to applicable Federal laws standards. FPO Guidance: Ask for a copy of procurement rules or other written guidelines that are used in the procurement of both goods and services. Interview staff or members who are familiar with procurement requirements. Does the organization have written procurement policies and procedures? Do the organization s procurement policies and procedures conform to applicable rules and regulations? How does the organization assure that it conducts procurement activities in a manner to ensure full and open competition? Document your observations of the extent to which the organization appears to use full and open competition to procure its goods and services. FPO Indicator 2.72 (C) The organization maintains a system for the administration of contracts, including appropriate contract or subrecipient clauses. Guidance: Interview staff or members who are familiar with subgrant or subcontract processes. Ask for a copy of required contract and/or grant clauses. Does the organization have a boilerplate contract or subrecipient format? Are the required clauses included? Source s and Notes: CORE ACTIVITY 2 PROGRAM AND GRANT MANAGEMENT SYSTEMS 2-15