How Does a State Make an Award to Eligible Providers? Cheryl Keenan

Contains Seven Rules Process State must follow in making award (463.20) Process to determine extent of alignment with local workforce plan (463.21) What must be included in the application (463.22) Who is eligible to apply (463.23) Establishing demonstrated effectiveness (463.24) Local administrative cost limits (463.25) Activities considered local administrative costs (463.26)

§463.20 What is the process that the eligible agency must follow in awarding grants or contracts to eligible providers?

Process for Awards Must award competitive multiyear grants or contracts to eligible providers…to enable eligible providers to develop, implement, and improve adult education and literacy activities Same

Process for Awards Must award competitive multiyear grants or contracts to eligible providers…to enable eligible providers to develop, implement, and improve adult education and literacy activities Same

Process for Awards (cont.) In conducting the competitive grant program, the eligible agency must ensure: All eligible providers have direct and equitable access to apply and compete for grants or contracts Same grant/contract announcement and application processes are used for all eligible providers Same

Process for Awards (cont.) Funds shall not be used for purpose of supporting or providing programs, services or activities for individuals who are not eligible individuals as defined in the Act, except in the case of programs, services or activities related to family literacy. Prior to providing family literacy activities to individuals who are not eligible, an eligible provider shall attempt to coordinate with programs and services that do not receive funding under this title. Same

Process for Awards (cont.) Eligible agency must require that eligible provider receiving a grant/contract use the funding to establish or operate programs that provide adult education and literacy activities, including programs that provide such activities concurrently. Some change

Considerations In awarding grants/contracts … the eligible agency must consider 463.20(d) (1) through (13): Revises the 12 factors under WIA Adds one factor for consideration Some change

Preamble Discussion: Most in Need “We believe the requirement for an eligible agency to consider the extent to which an eligible provider is responsive to serving those individuals identified in the local plan as needing adult education, combined with local plan requirements to serve individuals with barriers to employment will result in better access to education and training for all individuals with barriers to employment.”

Preamble Discussion: Most in Need “…we believe States have the flexibility to implement additional factors such as income when determining most in need. We remind States that choose to implement such additional factors of the requirement in §233(c) of WIOA to identify to eligible providers that the rule or policy is being imposed by the State.”

New Consideration The extent to which the eligible provider demonstrates alignment between proposed activities and services and the strategy and goals of the local plan. (463.20(d)(4)) Change

§463.21 What processes must be in place to determine the extent to which a local application for grants or contracts to provide adult education and literacy services is aligned with a local plan under §108?

Background on Rule Purpose is to establish uniform procedures within the State or Outlying Area (OA) for a local board to review an application and to ensure that the eligible agency considers the review in its award of grants/contracts for adult education and literacy activities; and Provide flexibility to States in meeting the requirement.

An Eligible Agency Must: Establish within its grant/contract competition a process that provides for the submission of all applications for funds under AEFLA to appropriate local boards.

Process Must Include: Submission of the applications to the appropriate local board for its review for consistency with the local plan within the appropriate timeframe. An opportunity for the local board to make recommendations to the eligible agency to promote alignment with the local plan. The eligible agency must consider the results of the review in the local board in determining the extent to which the application addresses the required considerations in §463.20.

Preamble Discussion: Alternative Processes/Bodies “The final regulations ensure all applications within a State are treated the same in the local [board] review. The Act explicitly requires local [boards] to review applications, and the Department is unable to include in the regulations any alternative review process that eliminates this requirement.”

Preamble Discussion: State Board Review “An additional requirement for the local or State board to review preliminary funding decisions by the eligible agency would diminish the authority of the eligible agency provided in statute. The eligible agency (EA), however, has the flexibility to determine its application review process consistent with Title II requirements, including how grant/contract applications are reviewed and providing safeguard measures to facilitate objective review and avoid conflict of interest.”

Preamble Discussion: Local Board Review “The Department believes that only appointed board members who do not have a conflict of interest as defined in §107(h) of WIOA are allowed to participate in the review of an eligible provider application. The rule does not preclude the local board from offering training to board members by adult education experts prior to participating in the review process…”

§463.22 What must be included in the eligible provider’s application for a grant or contract?

Summary of Application Content Information and assurances as required by eligible agency How funds will be spent How it will provide services in alignment with local plan, including promoting co-enrollment programs under Title I How it will fulfill one-stop partner responsibilities How it will meet adjusted levels of performance and collect performance data How it will provide services to meet needs of eligible individuals Describe cooperative arrangements Address 13 considerations Documentation of activities related to local board review

§463.23 Who is eligible to apply for a grant or contract for adult education and literacy activities?

Who is Eligible? New An organization that has demonstrated effectiveness in providing adult education and literacy activities is eligible to apply for a grant or contract. These may include but are not limited to:

Eligibility (cont.) A local educational agency; A community-based organization or faith-based organization; A volunteer literacy organization; An institution of higher education; A public or private nonprofit agency; A library; A public housing authority; A nonprofit institution that is not described in any of paragraphs (a) through (g) and has the ability to provide adult education and literacy activities to eligible individuals; A consortium or coalition of the agencies, organizations, institutions, libraries, or authorities described in any of paragraphs (a) through (h); and A partnership between an employer and an entity described in any of paragraphs (a) through (i).

Preamble Statement “§463.24 further permits other organization types, even if not specifically listed, to apply if they meet the demonstrated effectiveness requirement.”

§463.24 How must an eligible provider establish that it has demonstrated effectiveness?

Purpose of Rule 463.24 Ensure programs are of high quality. Create uniformity to help States conduct fair and equitable grant competitions. Clarify how those who were previously funded, as well as those not previously funded, could demonstrate effectiveness.

Establishing Demonstrated Effectiveness (a) For the purposes of this section, an eligible provider must demonstrate past effectiveness by providing performance data on its record of improving the skills of eligible individuals, particularly eligible individuals who have low levels of literacy, in the content domains of reading, writing, mathematics, English language acquisition, and other subject areas relevant to the services contained in the State’s application for funds. An eligible provider must also provide information regarding its outcomes for participants related to employment, attainment of secondary school diploma or its recognized equivalent, and transition to postsecondary education and training.

Two Ways to Demonstrate 463.24(b) Previously funded Provide performance data under §116 Not previously funded Provide data on past effectiveness in serving basic skills deficient eligible individuals Include evidence of success in achieving outcomes Content domains reading, writing, mathematics, English language acquisition, other subjects Employment, attainment of secondary diploma, transition to postsecondary

Preamble Statement “…§463.24(b) and (c) are not intended to result in additional data submission requirements, but rather that the eligible agency must make a means available in the application process for eligible providers to present such data in the application for a grant or contract.”

What are the requirements related to local administrative cost limits? §463.25 What are the requirements related to local administrative cost limits?

Administrative Cost Limits Same Administrative Cost Limits Not more than 5% of a local grant to an eligible provider can be expended to administer a grant or contract under Title II. In cases where 5% is too restrictive to allow for administrative activities, the eligible provider must negotiate with the eligible agency to determine an adequate level of funds to be used for non-instructional purposes.

What activities are considered local administrative costs? §463.26 What activities are considered local administrative costs?

Changes to Local Administrative Costs WIA WIOA Planning Administration Personnel development Interagency coordination Planning Administration including carrying out performance requirements Professional development Providing AEL activities in alignment with local plans Carrying out one-stop partner activities, including contributing to infrastructure costs of one-stop

Key Concepts Some award requirements have not changed Some considerations have changed or been added New emphasis on alignment with local plans and process to determine alignment Change in who can apply and how a State determines eligibility to apply Use of local admin to support infrastructure costs