Description: The Capacity Building Update series is designed to keep workforce development professionals and other stakeholders informed of the various system-building projects sponsored by the Office of Employment and Training Programs (OETP) and the other Employment and Training Administration (ETA) initiatives. This issue addresses the Quality Forum, an umbrella organization created to improve services to customers by promoting quality practices and continuous improvement in workforce development programs and initiatives. The Capacity Building Update is issued regularly to ensure that timely information about these projects is available to the employment and training community. The publication is available electronically on ETA's home page on the Internet under the System Building section, in a format that reflects the look and feel of the original document. The text version can be accessed through the Training Technology Research Center (TTRC) . The publication will be updated electronically as developments warrant. Another print edition is expected to be available early next year. Distribution: Copies of the Capacity Building Update will also be distributed to: ETA Regional Offices, State Training Institutes, State Training Coordinators, and other stakeholders. Action Required: Please distribute this publication to interested individuals and make it available at meetings and gatherings likely to be attended by workforce development system partners and customers.

References: JTPA Title II Eligibility Documentation, A Technical Assistance and Training Series, U.S. Department of Labor, Employment and Training Administration, TEIN No. 22-92, Change 4; TEIN No. 1-95--Capacity Building: Distribution of Multimedia JTPA Title II Eligibility Documentation Training Module. Background: The Department was recently informed that the Cloverdale Amendment prohibits the use of a voter registration card as proof of citizenship. This obscure amendment is included in the "The Balanced Budget Downpayment Act I." Accordingly, Section 117 under Title I of the Amendment enacts by reference legislation which states that "Notwithstanding any other provision of law, a Federal, State or local government agency may not use a voter registration card (or other related document) that evidences registration for an election for Federal office, as evidence to prove United States citizenship." Current instructions permit the use of a voter registration card for proof of citizenship status as well as for proof of residency. The enactment of the Cloverdale Amendment, supersedes all current instructions in the Job Training Partnership Act (JTPA) eligibility TAG which reference the voter registration card as acceptable documentation for citizenship verification. While the card is still acceptable as proof of residency, it is no longer acceptable as proof of citizenship for eligibility for JTPA programs. Therefore, other sources of documentation listed to establish citizenship proof should be used for determining eligibility. Action: Inform all TAG holders to delete all references to the voter registration card which currently appear on pages II-2, IV-3, 8, 12, 18, 23, 27, and VI pages A1-1, D-3, and D-4.

References: OMB Circular A-133, as revised April 30, 1996; Single Audit Act, as amended July 5, 1996 (P.L. 104-156). Background: A proposed revision to OMB Circular A-133 was published in the Federal Register on March 17, 1995; the final revision to the circular was published on April 30, 1996. The revised circular continues to apply only to institutions of higher education and non-profit organizations, including hospitals. The effective date of this circular is July 1, 1996, and applies to audits of fiscal years ending on or after June 30, 1997. The circular was written in such a way that after amendment of the Single Audit Act, it could be easily adapted to accommodate the provisions of the amendments. The intent was to make one law and circular applicable to both State and local governments and non-profit organizations. The amendments to the Single Audit Act were signed by President Clinton on July 5, 1996. As a result of these amendments, the requirements of OMB Circular A-128, which apply to State and local governments, will be rescinded, and its applicable requirements will be folded into OMB Circular A-133. OMB issued, in the November 5, 1996 Federal Register, a proposed, newly revised OMB Circular A-133, applicable to non-profits and State and local governments, which combines OMB Circulars A-128 and A-133. Comments are due to OMB by January 6, 1997. Summary: Following is an outline which summarizes the requirements of the revised circular. Significant changes from previous requirements are in bold type. Audit threshold increased from $25,000 to $300,000 Determination of major high risk programs no longer based solely on level of expenditures. Now they are determined by the auditor based on: Risk Assessment Prior audit experience Oversight performed by the Federal agency and others Inherent risk of the Federal program Assignment of Federal cognizant agency is now based on a dollar threshold of awards received, not by OMB. Auditee Responsibilities Identify and account for Federal awards Maintain internal controls over Federal awards Comply with laws, regulations and contracts Prepare required financial statements, etc. Ensure that A-133 requirements are met Follow-up and resolve audit findings Auditors The auditor that does the audit shall not prepare the auditee's indirect cost proposal or cost allocation plan, when indirect costs exceed $1 million in the prior year. (This is in affect on audits of fiscal years ending on or after June 30, 1999.) The Single Audit Act amendments will require the auditor to express an opinion on whether the schedule of expenditures of Federal award is fairly presented in all material aspects in relation to the financial statements. Reporting Reports must be submitted no later than nine months after the end of the year audited, or within 30 days after issuance of the auditor's report to the auditee, whichever is earlier. This will be transitioned in over a two year period. Auditee Reporting Requirements Financial statements Schedule of Federal awards expenditures Summary schedule of prior audit findings Includes status of all findings included in the auditor's prior year schedule of findings and questioned costs of Federal award Includes status of findings reported in the auditee's prior year summary schedule of prior findings until resolved or no longer valid. To be consider no longer valid, the following must apply: Two years have passed since the finding was reported; Grantor is not currently pursuing; and No management decision was issued Corrective action plan, where the auditor identifies audit findings for: Material noncompliance with individual compliance requirements for a major program; or Material weaknesses in the auditee's internal controls Data collection form Audit Costs Single Audit Act amendments establish the requirement that the percentage of the audit costs charged to Federal awards generally cannot be greater than the ratio of the entity's Federal awards expended to its total expenditures. A greater percentage can be charged only if the entity can demonstrate that the cost of auditing the Federal awards was higher If an entity expends less than $300,000 (or higher if the threshold is raised) in Federal awards, they may not charge single audit costs to the Federal awards. They may be allowed to charge the cost of limited scope audits to monitor subrecipients. Action Required: Please share these changes with appropriate staff. Comments on the proposed revisions of OMB Circular A-133 should be sent to OMB by no later than January 6, 1997.

Background: Earlier this year, DOL and AACC agreed to jointly sponsor this new award, in recognition of the growing importance of community colleges as providers of workforce development and transition services. Description of the Award: The 1997 Workforce Development Awards will recognize community college programs that enable workers and businesses to compete better in the global economy. One award will be given in each of four categories: exemplary one-stop career center and America's Job Bank services; dislocated worker services; incumbent worker training and education; and career pathways for at-risk and special-needs youth. Each award will include a cash prize of $10,000. Winners will be honored at the 1997 AACC Convention in Anaheim, California in April 1997. The competition is open to 1,200 community colleges throughout the United States. The awards will identify model programs and exemplary practices that can be adopted by community colleges and other providers in the arena of workforce development and transition services. Programs will be judged on the quality of their service design, effectiveness, linkages with other organizations, and support from college leadership, as well as on their uniqueness and innovation. Application forms were mailed to community college Chief Executive Officers the week of December 2, 1996. Completed applications are due January 15, 1997 to AACC, at the address provided in the attached application form.

Background: Earlier this year, the Employment and Training Administration consulted with stakeholders and partners in the delivery system in the development of agency-wide goals which would also be included in the draft Government Performance and Results Act plan. The final goals reflect suggestions and additions made during that consultation process. Action Required: Please distribute the attached goals to appropriate officials within the State and to all SDAs/SSAs in your State. Please continue to take every opportunity to work closely with your Regional Administrator in efforts to meet and exceed these goals.

Reference: TEIN No. 5-93, Change 1, dated June 23, 1994. Background: JTPA policy requires termination of participants within a reasonable time after they stop receiving training or services. This requirement was designed to provide programs some latitude in securing jobs for their customers, while at the same time, providing for more equitable performance assessments by precluding SDAs/SSAs from retaining indefinitely participants who are "unsuccessful." Without some policy on termination, performance standards create strong incentives for local programs to avoid terminating failures even when individuals no longer have any contact with the program. Currently, the 90-day requirement is applied differently for Title II and Title III, causing confusion in the field-- particularly among those local programs administering both JTPA titles. For Title II, only one 90-day period is permitted and it starts after the completion of planned employment and training.Thus, the 90-day period begins when training is completed, even if the SDA continues to provide job search assistance. For Title III the 90-day period starts after the completion of all planned employment, training or services. In response to recent requests from States to waive these limitations on how long participants can remain in the program without receiving services, the Department reexamined its policy and reporting instructions on program termination. Some requests asked for the time period to be extended to 180 days or longer to accommodate lengthy job searches and thereby improve performance outcomes. To fairly evaluate these requests, the Department raised this issue at regional MIS meetings and also reviewed available SPIR data to determine if local program performance improved when all job placements were credited, including those placements that occurred after 90 days from training. Program performance did not significantly improve when persons who remained in the program for periods longer than those prescribed in the reporting requirements were included. The Department did, however, recognize the need for a consistent policy on this issue across Titles II-A/C and III and Section 204(d). The Department further recognized that certain requirements may in some cases hinder programs' responsiveness to customer needs and might hinder programs' flexibility in coordinating services with other programs included under states' emerging workforce development/one-stop delivery systems. DOL will not waive the 90 day limit on how long a person can remain in the program while awaiting further services. To simplify the reporting burden and make its reporting policy consistent between titles, however, the Department is instituting a revised policy which permits multiple spells of "inactivity" between client services where appropriate and does not make distinctions between types of services. Thus, individuals will be able to remain in the program for up to 90 days regardless of the type of services they had received previously, eliminating the requirement to terminate after 30 days those individuals who received services and no training. This policy also permits a program to retain an individual for more than one 90-day period as long as subsequent services are substantial and occur with some frequency. Policy: Effective Program Year 1996, participants in Titles II-A/C and III and Section 204(d) may remain in the program for up to 90 days after last receiving planned training, employment or services. To keep a participant actively enrolled in the program, the individual should be receiving frequent and substantial services. For Titles II-A/C and Section 204(d), substantial services are defined as those authorized in Section 204(b) of the Act. For Title III, substantial services are defined as those authorized in Sections 314(c) and (d), and also certain services prior to layoff or termination from employment authorized in Section 314(h). For all programs, frequent is defined as occurring at least every 90 days. Revised SPIR Reporting Instruction: Accordingly, the SPIR reporting instructions are being revised for the following item: "33. Date of termination. Record the date (MMDDYY) at which an individual is no longer receiving planned employment, training or services (except post-termination services), including the last period of inactive status. Participants may remain in inactive status for up to 90 days after last receipt of substantial services (i.e., those services authorized in Section 204(b) of the Act for Titles II-A/C and Section 204(d) programs, and those services authorized in Sections 314(c), (d) and (h) for Title III)." Revised Guidance Attached: Appendix C, "Guidance on Period(s) of Inactive Status" attached, provides further discussion of the revised policy and reporting issues. It replaces Appendix C from TEIN 5-93, Change 1. Action Required: State Liaisons are asked to distribute the information in this Change Notice to all officials within the State who need such information to administer JTPA Titles II-A/C, Title III and Section 204(d) services and SPIR reporting.

Information: This year's conference, "One-Stop: Beyond the Vision," sponsored by the Employment and Training Administration (ETA) and hosted by the State of California, will provide an opportunity for workforce development professionals to hear how States and localities are implementing the One-Stop Career Center system, making the vision of One-Stop a reality for workforce development customers. Workshops will examine "best practices" in achieving the One-Stop objectives of universal access, customer choice, integration, and accountability for performance. The conference will update attendees on critical topics such as performance measures development, marketing of One-Stop and the impact of welfare reform. The conference program promises to be a valuable one for all partners in the employment and training system -- from directors to front-line staff. Early conference registration is suggested as attendance will be limited to 1200 participants. We encourage workforce development partners to register together. Four or more partners who register together will receive a group discount. We will reserve five registrations for each State until March 31; beyond that date registration will be on a first-come/first-served basis. Onsite registration will be available ONLY if any space remains. Full details on the registration are included in the attachment. ETA encourages new One-Stop implementation States and those States in the planning and development phase to attend this conference. Workshops of particular value to these States will be marked in the program. Action Required: States are asked to distribute this TEIN with the attached conference flyer and registration form to all people in the State interested in workforce development issues, including: service delivery areas and substate areas; State and local human services agencies (particularly those serving welfare and disabled clients); education partners (school-to-work grantees, community colleges, vocational education programs, etc.); community-based organizations; special-targeted program grantees (i.e., migrant and seasonal farmworkers, Native Americans, and older workers); private sector employers and Private Industry Councils; and labor partners. Interested individuals may duplicate the attached registration form. Under separate cover, brochures announcing the conference will be mailed to the One-Stop lead person in each State. These contacts are asked to distribute the brochures to their workforce development partners throughout the State. We will rely on the One-Stop State leads to "spread the word" about the One-Stop national conference. For your convenience, a list of One-Stop State leads is attached.

Background: The SESAs, JTPA State liaisons and local Service Delivery Areas, and the Senior Community Service Employment Program (SCSEP) sponsors have traditionally provided state and local leadership for celebrating "National Employ the Older Worker Week." The week provides the opportunity to focus on the many positive contributions that older workers have made in the past as well as those that will be made in the future. One-Stop Career Centers may also join in recognizing the achievements of older workers. Proclamation: President Clinton has signed a Presidential Proclamation declaring March 9 through 15 to be "National Employ the Older Worker Week," thereby demonstrating the Administration's commitment to the employment of older workers. Attached is a copy of the Proclamation. Posters: The Department of Labor fully supports this effort and encourages all employment and training programs to do so as well. Under separate cover you will receive posters prepared for "National Employ the Older Worker Week." The Department encourages you to use these as you plan your activities to celebrate the week. Actions Required: Addressees are requested to: a. Distribute the attached Proclamation and posters when received to local offices and program sponsors; b. Promote efforts to educate employers on the benefits of hiring, retraining and retaining older workers; c. Undertake efforts to recognize the contributions made by older workers and to facilitate and promote their continued participation in the work force, perhaps through Job Fairs, Older Worker luncheons, newspaper releases, and radio and TV broadcasts emphasizing successful older workers; d. Coordinate with SCSEP sponsors to further foster community efforts to recognize, promote and celebrate older workers in the local communities; and e. Share experiences and examples of products developed that may be helpful to others in the future.

Background: The Rehabilitation Services Administration (RSA), which is within the Office of Special Education and Rehabilitative Services (OSERS), Department of Education (ED) and the Employment and Training Administration (ETA) have been meeting to identify opportunities where collaboration between ETA and RSA would result in improved services to individuals with disabilities. A standing work group with staff from ED and ETA has been established to foster a productive partnership between the One-Stop Career Center System and Vocational Rehabilitation at the State and local levels. Action Required: Please distribute the attached issuance to appropriate officials within the State.

Background: Previous instructions directed States to submit the following reports directly to the ETA National Office with a copy to the Regional Offices: JTPA Quarterly Status Report (JQSR) JTPA Annual Summary Program Report (JASPR) Worker Adjustment Formula Financial Report (WFFR) Dislocated Worker Special Project Report (DWSPR) An examination and review of ways to increase the value of JTPA data led to a recommendation to have each Regional Office be the focal point for JTPA reporting from the States in its Region. Regions have now been designated to receive and process State JTPA Title II and III non-SPIR reports into regionally maintained data bases. Regions will be working with States to improve procedures for collecting and processing data, and to foster creative utilization of information as a program management tool. Submission of Reports: Beginning with the third quarter PY 1997 reports due May 15, 1997, States are to send the reports cited above directly to their appropriate Regional Offices. The Regional Offices will provide exact mailing addresses, names of individuals who will serve as contacts and other specific instructions as needed, in advance of the due date. Automation Initiative: The ETA National Office has prepared standard formats for the storage and transmission of JTPA data. These formats have been provided to the Regional Offices. Regions and States may begin a collaborative effort to produce and transmit data in the mandated format. As States demonstrate this capability, it is anticipated that the Regional Administrator will rescind the requirement for hard copy reports. Action Required: State JTPA and Worker Adjustment liaisons should make this information available to all appropriate officials.