Local Policy Required? No.
Summary
All recipients of State Dislocated Worker program fund sand mass layoff projects must adhere to cost categories limitations described in this policy.
Cost Category Limitations
Grants to providers for the State Dislocated Worker Programs and mass layoff projects are required to conform to the following cost categories pursuant to Minn. Stat. 116L.17:
- Administration:No more than 10% of total grant expenditures
- Career Services: No more than 40% of the total grant expenditures
- Direct Customer Training: At least 50% of the total grant expenditures
- Support Services: No more than 15% of the total grant expenditures
Types of Waivers
State statute does not allow administrative costs to exceed 10% under any circumstances. Therefore waivers are not allowed for the administrative cost category. However, providers may request a waiver for career services, direct customer training, or support services based on the following parameters:
Training Waiver
Providers may apply for a waiver of the 50% direct customer training requirement. However, a waiver request proposing less than 30%of the grant expenditures be spent on training, will not be considered with the following exception as permitted in Statute 116L.17 Subd 5: if funds other than state funds appropriated for the dislocated worker program are used to fund training assistance(e.g. TAA-certified mass layoff project).
Career Services Waiver
Providers may apply for a waiver of the 40% career services maximum. Providers may not request a career services waiver of more than 70% unless non-State funds are used to fund training assistance.
Support Services Waiver
Providers may apply for a waiver of the 15% support services maximum. However, the waiver may not allow more than 20% of the grant to be spent on support services unless non-State funds are used to support training.
Please note: All approved waivers will be included in the grant contract and will be subject to monitoring during the grant term.
Requesting a Waiver
A grantee must receive approval from the Grants Review Team for a waiver in order to spend outside of the cost category limits. Waiver requests must be submitted with an initial grant work plan and budget, or with a grant modification request.
For each waiver requested, DEED will require a brief justification (1-2 paragraphs) that addresses the need for the waiver. Justifications may include:
- Demographics of the affected workers necessitating more intensive counselor services, including services targeted to individuals in the Governor’s priority groups. The Governor’s priority group participation ratios are expected to be maintained or exceed current levels of enrollment and activities.
- Staffing concerns that are specific and robust (i.e. increased caseloads, staff professional development/promotions, significant case transfers from other providers, etc.)
- Provision of in-depth assessments to provide more accurate information to customers (must provide evidence/documentation that these are not routine assessments)
- Significant co-enrollment/cross-training of participants necessitating additional counselor time
- Significant, one-time disruptions in service (i.e. school/training provider/provider closures)
- Increased outreach and service of at-risk or priority populations, including Adults with Barriers to Employment (per WIOA), priority of service populations, and veterans, compared to area demographics, leading to demonstrated excellence in performance outcomes for these populations
- TAA certification of a worksite
The Grants Review Team will evaluate the merits of the waiver request on a case-by-case basis. DEED reserves the right to deny or modify the requested waiver percentage based on the strength of the waiver justification, required state obligations for federal dollars, or other factors the Grants Review Team deems relevant. The Grants Review Team will deny a waiver request under the following circumstances:
- No waiver justification included
- Waiver request is outside of the allowable limits
- Waiver request would disparately impact service to program participants
Modifications
Modification requests for the State Dislocated Worker program and mass layoff projects must adhere to these cost categories. If a provider wishes to modify their grant outside of any of the established cost category limitations, they must complete the Waiver Request Form included with their grant modification planning documents.In addition, DEED grants staff may require a provider to modify their grant if,during the grant’s operation, a cost category’s expenditures exceed 15%variance from the approved budget.
At the time of closing a grant, DEED grants staff will require a brief written justification (one paragraph) if the variance of any cost category exceeds 2% of the budgeted amount.
Definitions
Career Services:
Career Services are defined by WIOA Final Rules and Regulations (20 CFR 678.430 and 20 CFR 680.100 – 195) and include eligibility determination, outreach and intake, initial skill assessments, job search and placement assistance, career counseling, workshops, recruitment, coordination of activities with other programs, job vacancy listings, work experience/internships, prevocational activities and work readiness activities. Career services include Basic Career Services, Individualized Career Services, and Follow-up Services. All types of career services should be reported using cost category 857 on RPRs/FSRs. See DEED’s Allowable Activities policy for more information.
Direct Customer Training Services:
Training services, when determined appropriate, must be provided either through an Individual Training Account (ITA) or through a separate training contract. Training services must be provided by a provider listed on the State Eligible Training Provider and Program List (ETPL) for federal funds, or must be Office of Higher Education (OHE)-compliant for state funds, unless the training is on-the-job training, customized training, and incumbent worker training, which are excluded under federal law and state policy. If any WIOA funds are used for any of the participant’s activities, even if they are accessing state funds for training and WIOA funds for other services, the training must be listed on the ETPL per federal requirements. Direct Customer Training costs include any tuition, books, fees, on-the-job training reimbursements, participant wages & fringes, and other training services provided directly on the participant’s behalf. Staff costs cannot be paid for using Direct Customer Training cost code 838 and should be included under Career Services cost code 857 on RPRs/FSRs. See DEED’s Allowable Activities policy for additional requirements.
Support Services:
Services such as transportation, child care, dependent care, housing, and other payments that are necessary to enable an individual to participate in program activities. Support services are payments made to or on behalf of eligible participants for one-time or temporary services required to support the individual’s Employment Plan. Dislocated Worker will only pay for expenses incurred while a participant is enrolled in the program and actively participating in authorized activities. Invoices must include dates of services. Support Services are not intended to meet every need of a participant. Rather, they provide temporary assistance. See DEED’s Allowable Activities policy for additional requirements. Support Services should be recorded as cost code 828 on FSRs/RPRs.