GRANTS MANAGEMENT 101 Overview of how Florida’s Workforce System is Funded Workshop Objectives: Participants will gain a better understanding of: • The structure of Florida’s Workforce System • The grants that fund Florida’s Workforce System • Basic federal grant management principles • Florida’s grant management system • The need for program management and financial management to work together 2 3 4 5 Major Workforce Grants Wagner-Peyser (WP): Employment Services – Granddaddy of all workforce grants (1933) – Establishes a federal-state partnership for employment services (labor exchange) for job seekers and employers – Each Board’s share of funding is based on: • Civilian Labor Force and the # of Unemployed Individuals – Grant funding is an anchor grant used to support infrastructure costs associated with operating the one-stop system – Serves the “universal” customer 6 Major Workforce Grants Wagner-Peyser Continued: – Services must be delivered by “State Merit” staff – Only “State Merit” staff may directly charge their time to the WP grant (RWB Business Units) – Must be used to provide core May be used for intensive services but cannot be used for training services – DEO staff are assigned to Workforce Boards and are jointly-managed 7 Major Workforce Grants Workforce Investment Act (WIA): Establishes the structure of the local workforce system – Partnership between local government and the workforce board – Requires an employer-based Board of Directors – Funding is driven by local labor force data – Three separate funding streams: Adult, Dislocated Worker, and Youth 8 Major Workforce Grants Workforce Investment Act Continued: Adults – Serves all adults age 18 and older – Priority must be given to low-income adults when funds are limited – Triage of Services: Core, Intensive, and Training – State law requires that 50% of funding (combined with Dislocated Worker) is spent on training services (waiver may be obtained) – Grant funding is another anchor grant used to support the one-stop system 9 Major Workforce Grants WIA Continued: Dislocated Workers – Intended to serve individuals who have lost their job due to a layoff or business closure – The program also serves self-employed and displaced homemakers – State law requires that 50% of funding (combined with adult) is spent on training services (waiver may be obtained) – Funding can be transferred between the Dislocated Worker and Adult funding streams 10 Major Workforce Grants Workforce Investment Act: Youth – Serves low-income youth ages 14-21 (those 18-21 may also be served by the Adult Program) – 5% of those served do not have to be low-income if they have a barrier to employment – Funds both in-school and out-of-school programs – Requires the competitive selection of providers – 30% of funding must be used to serve out-ofschool youth 11 Major Workforce Grants Welfare Transition (WT) Program: – The WT Program is Florida’s designated work services’ program – Funded by the federal Temporary Assistance for Needy Families (TANF) Block Grant – Provides assistance to applicants to help divert them from going on welfare – Serves: applicants for cash assistance; cash assistance recipients; and transitional clients 12 Major Workforce Grants Welfare Transition Continued: – Welfare reform added the requirement that recipients of cash assistance work in exchange for benefits – Ensures that cash assistance recipients are engaged in required work activities – Transitional services may be offered to recipients reentering the workforce 13 Major Workforce Grants Veterans Programs: – Local Veterans Employment Representative (LVER) and Disabled Veterans Outreach Program (DVOP) – Services must be delivered by “State Merit” staff – DEO staff are assigned to Workforce Boards and are jointly-managed – DVOP staff primarily work at one-stop centers to assist Veterans with barriers to employment – LVER conduct outreach to engage employers 14 Major Workforce Grants Other Workforce Grants: Supplemental Nutrition Assistance Program (SNAP) – Formerly known as Food Stamp Employment and Training Program (FSET) – Serves mandatory Able Bodied Adults Without Dependents (ABAWD) and others who receive food stamps and volunteer for the program – Intent is to provide employment and training services to help recipients get off of food stamps 15 Major Workforce Grants Other Workforce Grants: Reemployment Assistance: – Formerly Known as Unemployment Compensation – Used to pay for costs associated with helping onestop customers file an initial claim or continuing claim – Not to be confused with Reemployment Services • PREP/REA, EUC-RES – EUC-RES program is merit-based – REA is not 16 GRANT MANAGEMENT PRINCIPLES OMB Circulars: – Cost Principles: • A-87 for State & Local Gov’t, codified at: 2 CFR Part 220 • A-122 for Not for Profits, codified at: 2 CFR Part 230 – Common Rule/Admin Requirements (Codified in different sections of the CFR: • A-102 for State & Local Gov’t, codified at: 29 CFR 97 for USDOL • A-110 for Not for Profits, codified at 29 CFR 95 for USDOL 17 GRANT MANAGEMENT PRINCIPLES Cost Principles: – All federal grants and sub-grants are subject to the cost principles – Does not apply to “vendors” – All costs must be reasonable & necessary – All costs must be consistently treated – All costs must be allocable to the federal award – All costs must be documented and within the Period of Availability 18 GRANT MANAGEMENT PRINCIPLES Examples of Allowable Costs: – Salaries and Benefits of those working on a grant program – Staff expenses such as travel, equipment, supplies, etc. – Rental costs and other infrastructure costs such as IT and communication systems – Other allocable costs related to the grant program 19 GRANT MANAGEMENT PRINCIPLES Examples of Allowable Costs with Prior Approval: – Equipment – Promotional items classified as informational (over $5K) for outreach purposes – Renovations and Alterations – Memberships (Civic/Community orgs) 20 GRANT MANAGEMENT PRINCIPLES Examples of Unallowable Costs: – Entertainment – Alcoholic Beverages – Advertising costs to promote the organization – Fundraising – Goods or Services for Personal Use – Lobbying – Food and Beverage (State Law) 21 GRANT MANAGEMENT PRINCIPLES Administrative Requirements: – Financial management systems – Property Management – Procurement – Records and Reports 22 Structure of Florida’s Grant Management System • DEO is the State Administrative Entity for all Workforce Grant Programs (Grantee) • Grantee/Subgrantee Agreement allows DEO to subgrant to the workforce boards • Notice of Award/Notice of Fund Availability • Cash Advance and Expenditure Reporting (OSMIS) • Closeout 23 Why is Grants Management Important “Closing Thoughts” • Grants Management is the “Bridge” between Program and Financial Management • Operation of a grant program impacts both program performance and financial performance • Accounting staff must understand how the program works and program staff must understand how finances impact programs 24
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