1. Services and Funding Work Team
One Stop System Building Tool Kit:
How to design it and how to pay for it

2. About the Tool Kit Designed by State/Local Work Teams Practical!
First Chapters:
Services and Funding
Memorandums of Understanding
More to Come!
Look for One Stop System Building next
Others as needs are further identified

3. Services and Funding: Some of the Challenges
Partners must be involved at every stage of the process: share common vision
Creating Quality local systems: there really aren’t shortcuts to get there
Out of the Box Thinking
Achieving genuine integration of services
Overcoming real (and perceived) restrictions on funding so that it can be mixed, leveraged, and shared for the benefit of the local system.

4. Lay out of Services and Funding
Introduction
Environment, Opportunities and Challenges
Seven Strategies to help your local area design the services for your local one stop system,determine the cost of those services, a process to allocate and share the cost of those services, and how to continually improve your local system.

5. About the Seven Strategies
Each strategy has useful tips and practical suggestions, examples, sample matrixes and other tools to use.
At the end of each strategy, there is a listing of useful resources (suggestions only!)
All of those resources are on Web Sites:
NYSDOL:
NYATEP:
Meant to be used with NYSDOL Technical Advisory on Cost Allocation

6. Some caveats This is a living document, some things may change
Will there be enough time to do all seven?
What if our area has already have gone through some of these strategies?
These are suggestions, your area may decide to take a different approach. Advice for whatever you use: make sure it is consistent with the intent of the law, and document the process.

7. The Seven Strategies
1. Determine Customer Needs (Business and Job Seeker)
2. Define the Local One Stop’s Vision, Mission, Values and Goals
3. Develop a Plan for the Delivery of Services
4. Identify which of the partners provide each service
5. Determine the Cost of the System
6. Allocate the Cost Among the Partners
7. Continuously Improve you System

8. Strategy 1: Determine Customer Needs
Collect data! Use what you already have, if possible
Kinds of data to be collected are identified (description of customers, what are their needs and wants, demographics, labor market, wage data, etc.)
How the data can be collected (surveys, focus groups, LMI, etc.)
Resources to help you get the data

9. Strategy 2: Vision, Mission, Goals
Use what has already been established by the Local Workforce Investment Board and Chief Local Elected Official (s)
Important to have partner and local WIB buy-in (best yet, that they are/were involved in the development)
Use consensus
Align with vision in WIA and the NYS vision contained in the Design Team Report
Consider using an outside facilitator

10. Strategy 3: Develop the Service Plan
11 Steps you can follow to develop your service plan, including mix of services based on customer needs/wants; what other services beyond core does your area want to provide; develop common definitions of core services; what intensive services will be provided, etc.
Required Core and suggested core services
Your local area will probably want to add services for business customers

11. Strategy 4: Develop List of partners to provide each service
7 steps for this strategy, including
Develop a matrix of which partner currently provide which service (several samples included in the on-line resources)
Criteria for deciding which partner provides which service
Decide which partner will deliver what
Eliminate duplication, identify gaps, fill gaps
Reach consensus on partner responsibilities

12. Strategies 5 and 6 Strategy 5: Strategy 6:
Determine the Cost of the System
Strategy 6:
Allocate Costs Among the Partners

13. Determine the Cost of the System
Build on the Service Plan Developed in Previous Strategies -- Particularly Strategies 3 and 4
Two Perspectives:
Local Workforce Investment Board Member
One-Stop Partner
The Cost of the System Includes Both --
Shared System Costs, and
Shared Service Costs

14. Ten Categories of Shared System Costs
Technology for the System
Facilities
Performance Tracking
Capacity Building
System Administration / Fiscal Management
Planning
Marketing
Operations
Shared Services
Other

15. Seven System Components
Seven Components:
Local Workforce Investment Board
Youth Council
Grant Recipient / Fiscal Agent
One-Stop Center(s)
One-Stop Operator(s)
Affiliate Site(s)
Other (can be defined by local area)

16. A Suggested Process For Each Category of Costs and System Component:
Estimate what will be needed to deliver the planned activities
Determine what resources are on hand, who has them and what their value is
Determine what resources are not on hand and what they will cost
The sum of items 2 and 3 equals the total cost of the system

17. A Suggested Process
Identify all potential resources and determine what direct costs should be charged to them. Subtract from item 4
The balance (item 4 minus item 5) is the system cost to be covered by the partners
Determine what part of item 6 is assigned to year one of the five year plan
Assess affordability: if costs can be covered, proceed with allocation among partners, if not, review and adjust service plan
Conduct reviews regularly and make adjustments as appropriate

18. Some Tips on Determining System Costs
Work with your local Fiscal Staff to adapt or develop a matrix and worksheets for identifying system costs
Differentiate services and system costs for each year of the 5 year plan
Determine all funding streams available to fund the system
Determine the “employer of record” for any shared positions: this determines salary and benefit levels
Determine local, State and federal guidelines for establishing the value of contributions to the one-stop system

19. Determining Shared Service Costs
There are many acceptable methods for determining the cost of each type of service.
One method: partners jointly define --
The items involved in delivering the service that carry costs
The cost per participant for the service
Each partner estimates anticipated volume of service for next program year and estimated cost
Partners/LWIB estimate system wide volume and anticipated costs for next year

20. Total Cost of the One-Stop System
The sum of the Shared System Costs and the Shared Service Costs equals the Total Cost of the System.
The Local Workforce Investment Board must approve the plan for services and costs or recommend some other action.

21. Allocate Costs Among Partners
Costs must be distributed proportionally across funding streams based on benefits received by that funding stream
OMB Circulars A87, A21, and A122 provide guidance on applicable cost principles
Partners may pay their share --
in cash;
through contributions; or
through a combination of cash and contributions

22. A 3 Step Process for Allocating Costs
Allocate shared costs using an appropriate allocation methodology as outlined by NYSDOL or as allowable in OMB Circulars
Assess affordability in relation to resources. Negotiate adjustments if necessary
Conduct ongoing reviews of costs and how costs are allocated. Adjust allocation plan as appropriate

23. Examples for Allocating Shared Costs
Tip: Seek Stable Allocation Bases
Technology: usage
Facilities: square footage
Performance tracking: usage
Capacity building: total staff
Fiscal Management: total staff
Planning: participant count
Marketing: usage
Operations: varied depending on item

24. Strategy 7: Continuously Improve your One Stop System
13 steps to building a continuous improvement culture among the partners
Eight principles of quality improvement
Measurement, Performance evaluation, Report Cards involving all partners is critical
Resources: Lots of web sites and materials are available, including the Enterprise and Simply Better Products

25. Three Strategies we do not Recommend
Put a “One Stop” sign on your Center and wait for other partners to show up with wheelbarrows full of $$$$
Open a “One Stop” Center (with one or a couple of partners) and send a bill to the other partners for their “fair share”
Wait for the Partners’ Oversight Agency (at the state or federal level) to direct them to pay their fair share