TEGL_10-20.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION Federal Bonding Grants CORRESPONDENCE SYMBOL OWI DYS DATE December 21 2020RESCISSIONS None EXPIRATION DATE ContinuingADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 10-20 TO STATE WORKFORCE AGENCIES STATE WORKFORCE ADMINISTRATORS STATE WORKFORCE ADMINISTRATORS WAGNER-PEYSER FROM JOHN PALLASCH Assistant Secretary SUBJECT Fidelity Bonding Demonstration Grants to State Workforce Agencies to Support Employment Opportunities for Ex-Offenders Including Ex-Offenders Recovering from Opioid and Other Drug Addictions 1.Purpose. To announce the availability of up to 3.3 million for Fidelity Bonding Demonstration Grants for Program Year 2020. These grants will enable states to expand their use of fidelity bonds to help persons with criminal records including ex-offenders recovering from opioid and other drug addictions obtain employment. 2.Action Requested. The Employment and Training Administration ETA U.S. Department of Labor DOL or the Department encourages State Workforce Agencies to consider applying for the grants described in this TEGL. The application deadline is February 02 2021. 3.Summary and Background. a.Summary - The Department is committed to helping those involved in the criminal justice system including ex-offenders recovering from opioid and other drug addictions obtain employment in family-sustaining jobs better informing employers about the knowledge skills and abilities of this population and advancing strategies to address the barriers to reemployment. Through the Federal Bonding Program FBP ETA provides fidelity bonds to employers to help reduce the risks of hiring individuals whose criminal backgrounds pose barriers to securing employment. b.Background - FBP is authorized under Section 169 of the Workforce Innovation and Opportunity Act WIOA . Over the years FBP remained a small program but in June 2019 the Department awarded 2 234 122 for Fidelity Bonding Demonstration Grants to 23 states and one outlying area to expand their use of fidelity bonds to help persons with criminal records get employment. The Department now wishes to further increase the use of fidelity bonds by offering funds to the states and outlying areas that did not receive grants last year. 2 State Workforce Agencies apply for the grant on behalf of their respective states and states will operate this grant through their current FBP. States that do not currently operate a FBP must designate a staff person to serve as the state bonding coordinator for this grant. States will use their own procurement policies and procedures to select an insurance provider to purchase bonds or may continue to purchase fidelity bonds through the Department of Labor s FBP contractor as long as they comply with state contracting procedures. State bonding coordinators may certify bonds or delegate the authority to certify bonds to other staff. 4. Grant Competition Details. a. Demonstration Goals. The goals of this demonstration include the following Improving employment outcomes which in turn decreases recidivism for persons with criminal records by encouraging states and workforce development partners to provide fidelity bonds to employers as a hiring tool for persons with criminal records Educating employers and the public on the availability and benefits of fidelity bonds for persons with criminal records and Providing outreach to employers to encourage them to hire persons with criminal records. b. Funds Availability. ETA is making up to 3.3 million in funding available under this TEGL for demonstration grants as authorized by Section 169 b of WIOA. ETA anticipates awarding up to 33 grants with an anticipated funding amount of up to 100 000 per grant. The maximum amount of funding each state can receive under this demonstration is 100 000. c. Eligible Applicants. Eligible applicants for funding under this opportunity are the State Workforce Agencies for the states and outlying areas that did not receive grants last year. These include the State Workforce Agencies for Arkansas Georgia Hawaii Idaho Indiana Kansas Louisiana Maryland Minnesota Montana Nevada New Jersey New Mexico North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Dakota Tennessee Utah Vermont Virginia West Virginia Wyoming Puerto Rico the District of Columbia the Virgin Islands American Samoa the Commonwealth of the Northern Mariana Islands and Palau. d. Eligible Participants. The funds for this demonstration come from an appropriation designated for serving persons with criminal records. Therefore only persons with criminal records including those involved with the criminal justice system by virtue of their history of opioid or other drug addictions are eligible for coverage under the bonds purchased with these funds. States that wish to provide bonds for at-risk individuals who are not ex-offenders must purchase bonds with funds other than those provided in this demonstration project. e. Allowable Activities. The grant s principal allowable activity is purchasing fidelity bonds to assist persons with criminal records including individuals recovering from opioid and other drug addictions obtain employment. A minimum of 85 percent of grant funds must be used specifically for the purchase of bonds. 3 In selecting an insurance provider for the bonds states must follow the Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards including 2 C FR 200.317 which states When procuring property and services under a Federal award a state must follow the same policies and procedures it uses for procurements from non -Federal funds. States may choose any insurance company broker or agency inclu ding the FBP provider contracted by the Department consistent with the state s procurement policies and procedures. At a minimum the specifications of bonds purchased with these grant funds must include the following o Bonds must reimburse employers for losses due to the illegal acts of their employees such as theft forgery and embezzlement o Bonds must provide at least 5 000 of coverage o Bonds must be allow ed to be used in multiple s to cover an individual employee totaling up to 25 000 of coverag e per employee and o Bonds must provide coverage for at least six months. States may require additional specifications such as increasing the dollar amount of coverage or lengthening the duration of coverage. States that do not currently operate a FBP must designate a staff person to serve as the state bonding coordinator for this grant. The state bonding coordinator implementing this demonstration in the state may have other responsibilities beyond operating this demonstration this does not need to be a full -time position. A primary function of this position will be to certify bond s with the insurance provider . State bonding coordinators may also delegate the authority to certify bonds to local staff . Grant funds may be spent on educating employer s and the public about the benefits of fidelity bonds for persons with criminal records including individuals recover ing from opioid and other drug addictions . Employer and public education may include but is not limited to the development and distribu tion of written materials virtual and in -person information sharing and meetings. Grant funds may be spent on administrative costs associated with operating this demonstration. f. Use of Funds . The following cost limitations apply At least 85 percent of grant funds must be used specifically for the purc hase of bonds The remaining grant funds may be used for education outreach and administrative cost s and These demonstration grants are subject to the Uniform Guidance Uniform Administrative Requirements Cost Principles and Audit Requirements for F ederal Awards at 2 CFR Part 200 and OMB s approved exceptions for the Department at 2 CFR Part 2900. ETA expects to execute grant awards on or before April 01 20 21 and g rant funds will be 4 available for expenditure during a four -year period of performance . g. Instructions for Submitting Applications . Application Narrative. Applicants must submit an Application Narrative not longer than four double -spaced pages. The Narrative must be divided into three components and the requirements for each are o utlined below under the following headings 1 Impact Need Statement 2 Project Implementation and 3 Fiscal Integrity . 1. Impact Need Statement Describe the need in your state for the grant. Identify the number of ex -offenders your state expects to s erve in its Employment Services ES and WIOA adult formula program over the next four years . That number may be higher or lower than the number shown for your state in the table in Attachment 1 which provides the estimated number of ex -offenders served by each state s ES and WIOA adult formula program s over four years based on Program Year 201 8 data. This information will be used to verify t hat there are enough individual s in your service area to meet the participation level you are requesting in your application. The use of this data does not mean that all workers bonded under this demonstration project must be enrolled in WIOA or ES services. Identify the total amount of the request . 2. Project Implementation Describe how your state currently adminis ters FBP and what adjustments if any will be made to your state s current FBP to operate this grant. If your state do es not currently participate in FBP describe how your state will administer the fidelity b onding demonstration. Identify the costs to educate employers and the public about fidelity bonding for ex -offenders including individuals recover ing from opioid and other drug addictions and administrative costs that will be charged to the grant. Describe your plan to expend the funds requested within four years. 3. Fiscal Integrity Describe the procedures you will implement to ensure the fiscal integrity of the project track funding and ensure a clear and concise audit trail. Applicants are not expected to identify an insurance provider in th eir application. Application Procedures Requirements and Timeline . In an effort to achieve greater efficiency and as part of ETA s on -going effort to streamline the grant award process grantees are required to submit the following items through Grants.gov at https www.grants.gov . o An electronically signed copy of an SF -424 - Application for Federal Assistance OMB Control No. 4040 -0004 o An SF -424A - Budget Information - Non -Construction Programs OMB Control No. 4040 -0006 o A Budget Narrativ e to explain the projected costs reflected in each line item of the SF -424A demonstrating how grant funds will be used. See Attachment 2 for instructions on completing the Budget N arrative o An Application Narrative comprised of three sections 1 Impac t Need Statement 2 Project Implementation and 3 Fiscal Integrity . Each section must address the questions and requirements laid out in Section 10 above. The Application Narrative statement must not exceed four double -spaced pages not including att achments and 5 o A proposed project timeline which includes a brief summary of planned activities and project milestones. An SF -424 electronically submitted through Grants.gov constitutes the official signed document and must reflect the total amount reques ted of no more than 100 0 00 in item 18 Estimated Funding. To find this TEGL on Grants.gov and submit the required documents select Search Grants. On the left side of the page scroll down to Agency expand the selection All Department of Labor a nd select Employment and Training Administration. If applicants encounter a problem with Grants.gov and do not find an answer in any of the other resources call 1 -800 -518 -4726 or 606 -545 -5035 to speak to a Customer Support Representative or email support grants.gov . The final date for accepting applications is 11 59PM ET on Feb 02 2 02 1. h. Award Procedures . Awards will be made to eligible applicants meeting the grant requirements as outlined in this TEGL . ETA may choose to provide technical assistance as needed to assist applicants that fail to meet all the requirements necessary for ETA to provide funding however this technical assistance is not an indication or guarantee that ETA will award the app lica nt a grant. An applicant will not receive a grant if it fails to demonstrate all required components prior to ETA exhausting all of the grant funds. ETA may elect to award a grant with or without discussions with the applicant. Should a grant be awarded without discussions the award will be based on the applicant s signature on the SF -424 including electronic signature w hich constitutes a binding agreement by the applicant. NOTE The Department will determine if the applicant had any restrict ion on spending for any ETA grant due to adverse monitoring findings within the past three years. Depending on the severity of the findings the Grant Officer may elect to not provide the applicant a grant award or to impose conditions on the award . All a pplications chosen for funding by the Grant Officer will go through a risk -review process before making an award ETA will review information available through any OMB -designated repository of government -wide eligibility qualification or Federal integrity information such as the Federal Awardee Performance and Integrity Information System FAPIIS Dun and Bradstreet and Do Not Pay. Additionally ETA will comply with the requirements of 2 CFR Part 180 Government -wide Debarment and Suspension Non -Proc urement . If ETA determines that an entity is responsible and an award will be made special conditions that correspond to the degree of risk assessed may be applied to the award. 6 Risk -related criteria that will be evaluated include the follo wing i. Financial stability ii. Quality of management systems and ability to meet the management standards prescribed in the Uniform Grant Guidance iii . History of performance The Applicant s record in managing awards cooperative agreements or pr ocurement awards if it is a prior recipient of such Federal awards including timeliness of compliance with applicable reporting requirements and if available the extent to which any previously awarded amounts will be expended prior to future awards iv. Re ports and findings from a udits performed under Subpart F -Audit Requirements of the Uniform Grant Guidance 2 CFR Sections 200.500 - 200.520 or the reports and findings of any other available audits and monitoring reports containing find ing s issues of non -compliance or questioned costs and v. The applicant s ability to effectively implement statutory regulatory or other requirements imposed on recipients. Selection of a recipient does not constitute approval of the grant application as submitted. Before grant award the Department may enter into negotiations about items such as program components staffing and funding levels and administrative systems in place to support grant implementation. If the negotiations do not result in a mutually acceptable submission the Grant Officer may terminate the negotiations and decline to fund the application. i. Required Reporting . Quarterly Fiscal Reports Grantees must submit the quarterly Basic ETA -9130 financial report until funds are expended or the grant pe riod has expired. Quarterly financial reports are due 45 days after the end of each calendar year quarter. Grant recipients must submit the ETA -9130 using the Department s Online Electronic Reporting System. Quarterly Progress Report Grantees must sub mit a one -page narrative report summarizing the progress of their grant within 45 days of the end of each quarter to their assigned Federal Project Officer. Fidelity Bonding Issuance Form OMB Control No 1205 -0541 State bonding coordinators or designated staff will report on the fidelity bonding issuance form the occupational title industry hourly wage and hours of work per week of the position gender race and ethnicity of the ex -offender who is being insured number of employees of the employer an d whether the employer is for -profit not -for -profit or a government agency. To comply with state policies regarding reporting gender and other concerns raised by states the gender race and ethnicity items will be optional and not required to issue a bond. Recidivism Persons enrolled in the Wagner -Peyser Employment Service who are covered by Fidelity Bonds will have their recidivism tracked through ETA s performance reporting requirements. ETA will provide states with a Special Project ID code to us e for Wagner -Peyser Employment Service performance reporting on these individuals on the ETA -9172 the DOL -only Participant Individual Record Layout PIRL . The code will identify persons enrolled in the Employment Service who are covered by Fidelity Bond s. 7 j. OMB Information Collection . OMB Information Collection No 1225 -0086 Expires July 31 20 22 . According to the Paperwork Reduction Act of 1995 no persons are required to respond to a collection of information unless such collection displays a v alid OMB control number. Public reporting burden for this collection of information is estimated to average 20 hours per response including time for reviewing instructions searching existing data sources gathering and maintaining the data needed and c ompleting and reviewing the collection of information. Send comments about the burden estimated or any other aspect of this collection of information including suggestions for reducing this burden to the U.S. Department of Labor to the attention of th e Departmental Clearance Officer 200 Cons titution Avenue NW Room N1301 Washington DC 20210. Comments may also be emailed to DOL PRA PUBLIC dol.gov . PLEASE DO NOT RETURN YOUR GRANT APPLICATION TO THIS ADDR ESS. SEND ONLY COMMENTS ABOUT THE BURDEN CAUSED BY THE COLLECTION OF INFORMATION TO THIS ADDRESS. SEND YOUR GRANT APPLICATION TO THE SPONSORING AGENCY AS SPECIFIED IN THIS ANNOUNCEMENT. This information is being collected for the purpose of awarding a demonstration grant. 5. Inquir ies. Questions regarding this guidance should be directed to Melissa Abdullah at Abdullah.Melissa dol.gov in the ETA Office of Grants Management. 6. Refer ences . Section 169 b of the Workforce Innovation and Opportunity Act WIOA Pub. L. 113 - 128 Department of Labor Appropriations Act 2020 Public Law 116 -94 ETA Form 9130 Office of Management and Budget OMB Control No. 1205 -0461 and Federal Bond ing Program website www.bonds4jobs.com . 7. Attachments . Attachment 1 Estimated Number of Offenders Served by Each State s Employment Service and WIOA Adult Formula Program Over Four Years Based on Program Yea r 201 8 Data Attachment II Instructions for Completing Budget Narrative I-1 Attachment I Estimated Number of Offenders Served by Each State s Employment Service and WIOA Adult Formula Program Over Four Years Based on Program Year 2018 Data State PY 2018 1-Year Total 4-Year Estimate Arkansas 1 181 4 724 Georgia 3 071 12 284 Hawaii 32 128 Idaho 169 676 Indiana 1 682 6 728 Kansas 2 241 8 964 Louisiana 1 594 6 476 Maryland 718 2 872 Minnesota 77 308 Montana 11 44 Nevada 1 204 4 816 New Jersey 2 242 8 968 New Mexico 144 576 North Carolina 7 754 31 016 North Dakota 299 1 196 Ohio 1 052 4 204 Oklahoma 910 3 640 Oregon 9 016 36 064 Pennsylvania 7 642 30 568 Rhode Island 91 364 South Dakota 1 505 6 020 Tennessee 595 2 380 Utah 328 1 312 Vermont 614 2 456 Virginia 433 1 732 West Virginia 1 130 4 520 Wyoming 591 2 364 District of Columbia 221 884 Puerto Rico 9 100 36 400 Ame rican Samoa 196 784 Northern Marianas 178 712 Virgin Islands 192 768 Palau 227 908 The PY 2018 numbers for states are from the WIOA PY 2018 State Annual Reports and include ex -offenders who exited the Employment Service or the WIOA Adult Program over the 12 -month period from April 1 2018 through March 31 2019. To avoid double -counting persons served by both the Employment Service and the WIOA Adult Program the highest number served from either of these programs is used. The four -year estimate of number served is simply the PY 2018 number multiplied by four. The numbers for Puerto Rico the Virgin Islands American Samoa and the Commonwealth of the Northern Mariana Islands are prisoners in custody at the end of the year available from Table 21 Prisoners Under Jurisdiction or in Custody of Correctional Facilities in U.S. Territories and Commonwealths by Prison Facility Capacity December 31 2018 in Prisoners in 2018 Bureau of Justice Statistics U.S. Department of Justice April 2020. The numb er for Palau is the number of criminal dispositions in 2019 from the Palau Government Judicial Branch website a t http www.palausupremecourt.net . II-1 Attachment II General Instructions for the Completion o f Budget Information Narrative The Budget Information Narrative provides an explanation of each line item on the SF -424A including a breakout of the relevant component costs. The total of the breakout must equal the amount listed on the corresponding l ine item of the SF -424A. This narrative reflects projected costs incurred by the recipient with the exception of the Contractual line item. Please note that a separate breakout of the recipient s administrative costs must also be provided. 1. Personnel List all staff positions by title. Indicate the annual salary of the position the percentage of each position s time devoted to the project the amount of each person s salary charged to the grant and the total personnel cost for the period of perform ance. 2. Fringe Benefits Provide the overall fringe benefit percentage which reflects the recipient s organizational fringe and list the components included such as health insurance FICA retirement etc. Provide the fringe benefit calculation for eac h staff position listed under the Personnel line item as well as the collective total charged to the grant. 3. Travel Specify the type and purpose of the travel the number of travelers approximate mileage per diem rates estimated number of trips and other associated travel costs. 4. Equipment Identify each item of equipment to be purchased that has an estimated acquisition cost of 5 000 or more per unit and a useful lifetime of more than one year. List the quantity and unit cost per item. Items w ith a unit cost of less than 5 000 are supplies. 5. Supplies Supplies include all tangible personal property other than equipment. Identify supply categories e.g. office supplies cell phones etc. . List the cost associated with each category. 6. Contractual Identify each contracted entity the funding allocation made to the organization and the anticipated number of participants served by each. 7. Construction Construction costs are not allowed and this line must be left as zero. 8. Other Lis t each item in sufficient detail for reviewers to determine whether the costs are reasonable or allowable. Costs included under Other should not fit into any other line item category. 9. Indirect Charges If charging indirect costs to the grant this li ne item must be populated. Include the current approved Negotiated Indirect Cost Rate Agreement signed by the Federal cognizant agency as an attachment to the grant application.