U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210
August 26, 1996
|DIRECTIVE||:||TRAINING AND EMPLOYMENT INFORMATION NOTICE NO. 03-96|
|TO||:||ALL STATE JTPA LIAISONS
ALL STATE EMPLOYMENT SECURITY AGENCIES
ALL STATE WORKER ADJUSTMENT LIAISONS
ALL ONE-STOP CAREER CENTER SYSTEM LEADS
|FROM||:||BARBARA ANN FARMER
for Regional Management
|SUBJECT||:||Invitation to Pilot the Cost Allocation TAG|
Purpose. To inform the employment and training system of the opportunity for state and local jurisdictions to pilot the cost allocation technical assistance guide (TAG) entitled "Sharing Resources to Provide Integrated Services: A Guide to Activity-Based Cost Allocation."
Background. The Cost Allocation TAG was developed by a joint federal, state, and local workgroup in order to provide flexible approaches to cost allocation for one-stop programs and other forms of integrated service delivery systems. The TAG proposes alternative cost allocation methodologies focusing on bottom-line measures of benefit based on outputs. Earlier drafts of the TAG have been circulated for review and comment throughout the employment and training system during the past year. Training on the TAG's methodology has also been provided in numerous locations throughout the country.
The TAG has now been edited and revised in response to the comments received during this period and is being issued in a "Pilot Release" version dated April 24, 1996. This version is substantively the same as the one used for the training sessions, except for the additions and edits that were suggested during the comment and training period.
OMB and Federal Agency Approval. The TAG has been approved for field testing on a pilot basis by the Office of Management and Budget (OMB) as well as by the following federal agencies: the Department of Labor (DOL) Employment and Training Administration, DOL Office of Inspector General and Office of Cost Determination; the Department of Health and Human Services (HHS) Division of Cost Allocation; and the Department of Education (DOE) Office of Indirect Cost Determination. A copy of OMB's approval letter is attached. Federal funds being used to provide integrated employment and training services at the state and local levels may be included in piloting the TAG.
DOL Support for the Pilot. The U.S. Department of Labor will fully support the pilot in the following manner:
Provide technical assistance and training to the fullest extent of our available resources;
Gather information from each pilot site and disseminate it to the other pilot sites regarding the design of the delivery system, agreements reached, progress being made, results achieved, problems encountered and solutions found;
With the concurrence of the DOL Office of Inspector General and other federal offices, hold the pilot sites harmless for any cost issues arising specifically from use of the TAG, so that they will not have costs questioned or disallowed because of their use of the TAG's methodologies for allocating costs.
After the pilot sites are selected, DOL will be available to meet with representatives from the pilot sites in order to provide additional training on the TAG and to exchange ideas on how to implement the TAG.
Test Parameters. The methodologies to be tested are presented in the "Pilot Release" version of the Cost Allocation TAG entitled "Sharing Resources to Provide Integrated Services" dated April 24, 1996. Following are the parameters for the field test.
Pilots may be conducted on a statewide basis or in selected jurisdictions which are in the process of implementing one-stop or other forms of integrated service delivery systems.
As service delivery system designs may vary widely, the exact scope of the test at each site will be individually negotiated with DOL.
Staff at each pilot site will be authorized to use the methodologies presented in the TAG.
DOL and the State will provide technical assistance to staff at each pilot site throughout the test period.
Each pilot will run through one complete program funding cycle or at least one program year.
Each pilot site must receive clearance from the State, its audit agency, and DOL before the test begins.
Each pilot site will maintain historical and contemporaneous information sufficient to conduct a comparative evaluation of the results of allocating costs based on the TAG methodologies vs. traditional methods.
Criteria for Pilot Site Selection. In order to be an approved pilot site, a State must submit a written application to pilot the TAG and provide information on the pilot sites as noted below. The TAG may be piloted either on a statewide basis or in selected local jurisdictions. The pilot sites will be selected from among those states or local jurisdictions which volunteer to pilot the TAG and agree to fully cooperate with the pilot effort.
The number of pilot sites may be limited in order to provide adequate support for the sites that are selected. Consequently, some sites which volunteer may not be selected. Selections will be based on the extent of state and local support for the pilot; a diverse mix of management structures, funding sources, and program designs; and the configuration of pilot sites that will permit the highest level of federal and state support for the pilots.
The Department of Labor will seek diversity among the pilot sites in order to include different forms of organization, delivery systems, and fund sources. Therefore, we request that the State provide information about the proposed pilot site(s) by responding to the following questionnaire.
Describe the scope of the pilot. Will the pilot be conducted on a statewide basis or only in selected local jurisdictions?
If on a statewide basis, identify the total number of pilot sites to be created at the local level.
If in selected local jurisdictions only, identify them by name and address, whether they are urban/suburban/rural, and whether they are managed by a single agency or by multiple autonomous agencies.
What funds will be included in the pilot (e.g., JTPA, JOBS, Employment Service, Unemployment Insurance, Vocational Education, etc.)?
Which, if any, pilot sites have received one-stop implementation grants or otherwise initiated a one-stop or other form of integrated program delivery system? Briefly describe how the pilot site programs are designed to achieve universal access, integrated services, integrated governance, and performance measurement.
What are the proposed starting and ending dates for the pilot(s)? (The pilots should begin as soon as possible and operate at a minimum through one complete funding cycle or one program year.)
Affirm that the state and all affected local jurisdictions agree to:
Fully cooperate with and support the effort to pilot the TAG at the proposed pilot sites;
Share with federal agencies all relevant information and reports about the pilot;
Allow federal and state staff to review the pilot on-site;
Evaluate the results of the pilot both during and at the end of the pilot period.
Add any additional information that should be considered in determining whether the proposed pilot sites should be selected.
Identify a contact person at the state level and for each pilot site by name, address, phone number, fax number, and internet address.
Action. In order to allow for as much lead time as possible for implementing the pilots, we are seeking a quick turnaround to this survey. If you are interested in piloting the TAG, submit your application in response to the questionnaire as soon as possible. The initial selection of pilot sites will be made from among the applications received by September 20, 1996. DOL will notify the State contact person of the selections for the pilot sites shortly thereafter. Your application should be directed to the following Chicago Regional Office address with a copy to your own Regional Office:
Barry S. Dale
USDOL/ETA 6th Floor
230 S. Dearborn
Chicago, IL 60604
Barry Dale (phone: 312-353-9138)
Nicholas Lammers (phone: 312-353-0790)
Deborah Strama (phone: 312-353-4216)
Tom DiLisio (phone: 312-353-4218)
Inquiries. Any questions should be directed to your Regional Office representative or to the contact persons in the Chicago Regional Office listed above.
Attachments. OMB approval letter. Copies of the TAG are being shipped separately to each Regional Office and State.
NOTE: Attachments not available to DMS