Introduction to Grants

1. Introduction to Grants

2. Objectives • Understand Grants • Learn about Formula Grants • Learn about 1S State Reserve Grants • Learn about 1N National Reserve Grants • Learn about 1G Governor’s Discretionary Grants • Learn about TAA Trade Adjustment Assistance Grants • Learn about Grant Definitions • Learn about Suggested Grant Planning Roles

3. Introduction to Grants • Each program year the U.S. Congress passes appropriations for programs administered by the Department of Labor (DOL) that include the Workforce Investment Act of 1998 (WIA) and the Trade Adjustment Assistance (TAA). Allotment estimates for WIA are typically prepared by DOL in January for the upcoming program year beginning July 1, based on the WIA appropriation for that program year, and are distributed to the states in early spring.

4. Introduction to Grants • The amount of funding that is distributed to the states is based on formulas for each funding stream as defined in section 127 for Youth Activities and section 132 for Adult and Dislocated Worker Employment and Training Activities of the Act (1(1A, 1Y, 1D)). Of the amount appropriated for Dislocated Worker Employment and Training Activities DOL reserves 20 percent for use for assistance to the outlying areas, dislocated worker technical assistance, dislocated worker projects, and national emergency grants (1N).

5. Introduction to Grants • When the State of Illinois receives the allotments, allocations to local areas are prepared by the Department of Commerce and Economic Opportunity (DCEO) based on formulas for each funding stream as defined in the State Five-Year Strategic Plan for Titles I-B and III of the Workforce Investment Act of 1998. Of the amount allotted the State reserves 15 percent of the three funding streams for Administration and Statewide Activities and 25 percent of Dislocated Worker funding to provide Rapid Response Activities (1S).

6. Formula Grants • Once the allocations have been calculated, they are distributed to the local areas in a WIA Notice. This funding must be incorporated into the local area’s five-year plan. Typically a WIA Policy Letter providing instruction as to how to modify the local five-year plan to establish funding for the upcoming program year would have been disseminated by DCEO prior to the release of the local allocations. The WIA Policy Letter instructs local areas to enter the grant plan information on the Illinois Workforce Development System (IWDS).

7. Formula Grants • The grants system administrator (DCEO Grants System Administrator) must enter a “parent” or state roll-up grant plan into IWDS before the system will allow a local area to enter a grant plan. Local area grant planners (LWA Grants Planner) enter the grant plan into IWDS and submit the necessary paperwork in hard copy to DCEO in order to modify their local five-year plan.

8. Formula Grants • When the LWA Grants Planner enters the grant plan information into IWDS, they set the status of the grant plan to pending indicating to DCEO that it is ready for review. Once DCEO receives the hard copies of the required paperwork, a DCEO staff member assigned to the local area and the planner (DCEO Grants Planner) review the grant plan. If the DCEO reviewers agree that the grant plan is in compliance with the Act, then it is approved on IWDS and an approval letter is sent to the local area. If the DCEO reviewers feel that the plan is not in compliance with the Act, then it is disapproved on IWDS and the local area would receive communication from DCEO explaining why the grant plan was disapproved.

9. Formula Grants • Once a grant plan, whether it is an establishment or a modification to funding, has been approved the budget must be entered into DCEO’s accounting system (GRS). The grant would then be printed for the DCEO Director’s approval. Next, the budget forms would be printed and sent to Financial Administration. Financial Administration would then prepare the grant package and mail it to the CEO or the designated signatory for signature. Once the grant package has been returned from the local area with a signature it is sent to DCEO’s Accounting Department. From there the grant package goes to DCEO’s Legal Department who gives it a final approval and sends the executed contract to the Comptroller’s Office. This is true for all grants.

10. Formula Grants • Any changes such as transfers between the Adult and Dislocated Worker funding streams, funding levels or registrant information must be a modification to the grant plan established for the program year in IWDS as well as an additional modification to the local five-year plan and would follow the same instructions.

11. 1S State Reserve Grants • 1S State Reserve grants are discretionary grants awarded by the state to local areas to serve Dislocated Workers in dislocation (DETS) events when the magnitude of the event may be beyond the capability of the grantee to handle with available WIA formula (1D) funds. This funding comes from the 25 percent amount set aside by the state for Rapid Response Activities.

12. 1S State Reserve Grants • Since this is a discretionary grant, local areas must apply for this funding. This funding is not tied to their local five-year plans. A WIA Policy Letter is distributed by DCEO each program year to provide the local areas with instructions for completing the application for 1S funds. The WIA Policy Letter instructs local areas to enter the grant plan information on the Illinois Workforce Development System (IWDS).

13. 1S State Reserve Grants • The grants system administrator (DCEO Grants System Administrator) must enter a “parent” or state roll-up grant plan into IWDS before the system will allow a local area to set a grant plan to pending. Local area grant planners (LWA Grants Planner) enter the grant plan into IWDS and submit the necessary paperwork in hard copy to DCEO in order to submit their grant application.

14. 1S State Reserve Grants • When the LWA Grants Planner enters the grant plan information into IWDS, they set the status of the grant plan to pending indicating to DCEO that it is ready for review. Once DCEO receives the hard copies of the required paperwork, the Rapid Response staff assigned to the local area and the Rapid Response Grants Planner (DCEO RRD Grants Planner) review the grant plan.

15. 1S State Reserve Grants • If the DCEO reviewers agree that the application is warranted and the grant plan is complete, then it is approved on IWDS and an approval letter is sent to the local area. If the DCEO reviewers feel that the grant plan is not warranted and the grant plan is incomplete, then it is disapproved on IWDS and the local area would receive communication from DCEO explaining why the grant plan was disapproved.

16. 1S State Reserve Grants • Any changes in funding levels, such as a request for additional funding, or registrant information must be a modification to the grant plan established for the program year in IWDS as well as an additional modification application submitted to DCEO and would follow the same instructions.

17. 1N National Reserve Grants • National Emergency Grants (NEGs) are discretionary grants awarded by the Secretary of Labor to serve dislocated workers in significant dislocation events that arise from the effects of economic globalization, business fluctuations and unexpected events (e.g., natural disasters). This funding comes from the 20 percent amount set aside by the DOL for use for assistance to the outlying areas, dislocated worker technical assistance, dislocated worker projects, and national emergency grants (1N).

18. 1N National Reserve Grants • Training and Employment Guidance Letter (TEGL) No. 16-03 was distributed by DOL to inform the state and local workforce investment system with policy guidance for the National Emergency Grant. DOL is in the process of introducing new application guidelines for NEGs. The Employment and Training Administration of DOL will implement electronic processes for submitting and reviewing all NEG applications.

19. 1N National Reserve Grants • Typically the state submits the application for a NEG, therefore if multiple local areas are asking to receive funding, they must submit local plans for services to DCEO. DCEO Rapid Response staff rolls up each local area’s plan information and submits a statewide application. For this reason, it is not necessary to have a grant number to enter a grant plan for 1N in IWDS. If DOL approves the application, a grant number will be assigned by DCEO for that funding.

20. 1N National Reserve Grants • At that time, the LWA Grants Planner would have to adjust the local plan in IWDS to reflect the grant that was awarded since typically the full amount requested is not awarded. DCEO staff will instruct the local area what they can expect to receive in the way of funding. The grants system administrator (DCEO Grants System Administrator) must enter a “parent” or state roll-up grant plan into IWDS before the system will allow a local area to set a grant plan to pending.

21. 1N National Reserve Grants • When the LWA Grants Planner enters the final grant plan information into IWDS, they set the status of the grant plan to pending indicating to DCEO that it is ready for review. Once DCEO receives the hard copies of the required paperwork, the Rapid Response staff assigned to the local area and the Rapid Response Grants Planner (DCEO RRD Grants Planner) review the grant plan. If the DCEO reviewers agree that the grant plan is complete, then it is approved on IWDS and an approval letter is sent to the local area. If the DCEO reviewers feel that the grant plan is incomplete, then it is disapproved on IWDS and the local area would receive communication from DCEO explaining why the grant plan was disapproved.

22. 1G Governor’s Discretionary Grants • 1G Governor’s Discretionary grants are discretionary grants awarded by the state to local areas or regions to serve Adults, Youth, Dislocated Workers, or a combination thereof in special projects. This funding comes from the 15 percent amount set aside by the state for Statewide Activities.

23. 1G Governor’s Discretionary Grants • Since this is a discretionary grant, local areas must apply for this funding. This funding is not tied to the local five-year plans. These grants are awarded by DCEO through requests for applications from local areas and/or regions with instructions for completing the application for 1G funds. The information distributed instructs local areas or regions to enter the grant plan information on the Illinois Workforce Development System (IWDS).

24. 1G Governor’s Discretionary Grants • The grants system administrator (DCEO Grants System Administrator) must enter a “parent” or state roll-up grant plan into IWDS before the system will allow a local area or region to set a grant plan to pending. Local area grant planners (LWA Grants Planner) enter the grant plan into IWDS and submit the necessary paperwork in hard copy to DCEO in order to submit their grant application.

25. 1G Governor’s Discretionary Grants • When the LWA Grants Planner enters the grant plan information into IWDS, they set the status of the grant plan to pending indicating to DCEO that it is ready for review. Once DCEO receives the hard copies of the required paperwork, the 15 percent statewide activities grant planner (DCEO 15% Grants Planner) reviews the grant plan.

26. 1G Governor’s Discretionary Grants • If the DCEO reviewers agree that the application is warranted and the grant plan is complete, then it is approved on IWDS and an approval letter is sent to the local area or region. If the DCEO reviewers feel that the grant plan is not complete or that the grant plan will not be funded, then it is disapproved on IWDS and the local area would receive communication from DCEO explaining why the grant plan was disapproved.

27. 1G Governor’s Discretionary Grants • Any changes in funding levels, such as a request for additional funding, or registrant information must be a modification to the grant plan established for the program year in IWDS as well as an additional modification application submitted to DCEO and would follow the same instructions.

28. TAA Trade Adjustment Assistance Grants • The Trade Adjustment Assistance (TAA) program is a federal program established under the Trade Act of 1974, as amended. • The TAA program is administered by the Employment and Training Administration of the U.S. Department of Labor. States serve as agents to the Labor Department in administering the TAA program.

29. TAA Trade Adjustment Assistance Grants • The Trade Act programs, Trade Adjustment Assistance (TAA) and Alternative Trade Adjustment Assistance (ATAA), assist individuals who have become unemployed as a result of increased imports from, or shifts in production to, foreign countries. The goal of the Trade Act programs is to help trade-affected workers return to suitable employment as quickly as possible.

30. TAA Trade Adjustment Assistance Grants • ETA has adopted an annual allocation process for disbursing TAA funds for training and associated administrative costs.  The annual allocation process will utilize a set formula for distributing 75 percent of available TAA training funds.  The remaining 25 percent will be reserved for distribution to states experiencing large, unexpected layoffs.  The reserve funds will be distributed after states submit a grant request and demonstrate that 50 percent of allocated funds have been accrued as expenditures. 

31. TAA Trade Adjustment Assistance Grants • The factors that will be used in determining each state’s share of the funds include prior year allocations of trade training funds and participant levels.  Additional criteria in preparing requests for reserve funds will reflect the historical request process.  In addition states will receive an additional 15 percent of their allocation for administration of the program as well as an additional 15 percent for administration for any reserve funding that is allocated. 

32. TAA Trade Adjustment Assistance Grants • The grants system administrator (DCEO Grants System Administrator) must enter a “parent” or state roll-up grant plan into IWDS before the system will allow a local area to set a grant plan to pending. Local area grant planners (LWA Grants Planner) enter only grant plan information into IWDS and submit the necessary paperwork in hard copy to DCEO in order to submit their grant application.

33. TAA Trade Adjustment Assistance Grants • When the LWA Grants Planner enters the grant plan information into IWDS, they set the status of the grant plan to pending indicating to DCEO that it is ready for review. Once DCEO receives the hard copies of the required paperwork, the Rapid Response staff assigned to the local area and the TAA Grants Planner (DCEO TAA Grants Planner) review the grant plan.

34. TAA Trade Adjustment Assistance Grants • If the DCEO reviewers agree that the application is warranted and the grant plan is complete, then it is approved on IWDS and an approval letter is sent to the local area. If the DCEO reviewers feel that the grant plan is not warranted and the grant plan is incomplete, then it is disapproved on IWDS and the local area would receive communication from DCEO explaining why the grant plan was disapproved.

35. TAA Trade Adjustment Assistance Grants • Any changes in funding levels, such as a request for additional funding, or registrant information must be a modification to the grant plan established for the program year submitted to DCEO and would follow the same instructions.

36. Grant Definitions • 1(1A, 1Y, 1D) Grants - Formula grants are distributed to the local areas to serve Adult, Youth, and Dislocated Workers. The amount each area receives is determined by local data factors and described in the state plan. • 1G Governor’s Discretionary Grants – Governor’s Discretionary grants are discretionary grants awarded by the state to local areas or regions to serve either Adult, Youth, Dislocated Workers, or a combination thereof in special projects.

37. Grant Definitions • 1N Reserve Grants – National Emergency Grants (NEGs) are discretionary grants awarded by the Secretary of Labor to serve Dislocated Workers in significant dislocation events that arise from the effects of economic globalization, business fluctuations, and unexpected events (e.g., natural disasters). • 1S Reserve Grants – 1S Reserve grants are discretionary grants awarded by the state to local areas to serve Dislocated Workers in dislocation (DETS) events when the magnitude of the event may be beyond the capability of the grantee to handle with available WIA formula funds.

38. Grant Definitions • ApprovedStatus – Approved status indicates that DCEO has reviewed and accepted the grant information. • De-Obligation - Reallocated funds taken away from the LWAs by the state.

39. Grant Definitions • DCEO 15% Grants Planner – This role allows DCEO users the ability to approve or disapprove local 15 percent - Governor’s Discretionary (1G) grant plans. • DCEO Grants Planner – This role allows DCEO users the ability to approve or disapprove local Formula grant plans.

40. Grant Definitions • DCEO Grants System Administrator – This role allows DCEO users the ability to have all of the DCEO roles for grants. Generally there is only one staff member assigned to this role. • DCEO Grants View Only - This role allows DCEO users the ability to only view grant plans in IWDS. • DCEO Rapid Response (RRD) Grants Planner – This role allows DCEO users the ability to approve or disapprove local 1S and 1N Reserve grant plans.

41. Grant Definitions • DCEO TAA Grants Planner – This role allows DCEO users the ability to approve or disapprove local TAA grant plans. • Disapproved Status – Disapproved status indicates that DCEO has reviewed and rejected the grant plan information. The grant plan requires additional or corrected information to be entered. • Draft Status – Draft status allows users to enter plan information into a grant.

42. Grant Definitions • Formula Grants – Formula grants are distributed to the local areas to serve Adult, Youth and Dislocated Workers. The amount each area receives is determined by local data factors and described in the state plan. Designated by title 1(1A, 1Y, 1D). • Grant Type – Grant type refers to the grant title (1(1A, 1Y, 1D), 1S, 1N, 1G, TAA). • Grant Year – Grant year refers to the program year that reflects when the funds will be spent.

43. Grant Definitions • Inactive Status – Inactive status is given to a grant plan once a modification to that grant plan has been created and approved by DCEO. Each time a modification is approved, the prior modification becomes inactive. • Local Grant Number – When adding a new grant, this refers to the local area grant number that will be communicated to the local areas by DCEO in a policy letter, notice, or via email. This number is generally the same as the parent grant or grant number except the last two digits should reflect the LWA number to which a user is assigned. For example, a program year 2004 formula grant for LWA 01 would be 0468101.

44. Grant Definitions • LWA System Administrator – This role allows local area users the ability to have all of the local roles and assign roles to staff at the local level. Generally there is only one staff member assigned to this role. • LWA Grants Planner – This role allows local area users the ability to add grant plans into IWDS. • LWA Grants View Only – This role allows local area users the ability to only view local grant plans in IWDS.

45. Grant Definitions • Modification – A modification is required should a local area wish to transfer formula funds between adult and dislocated worker funding streams, funding information needs to be updated and/or registrant information needs to be updated. Modifications should be made according to guidelines set forth from DCEO. • Original Allocation - Allocation amount used to establish the grant for the program year.

46. Grant Definitions • Parent Grant – The parent grant is the state roll-up for a grant title. For Formula grants, the last two digits should reflect the DCEO identifier which is 00. For example, the parent grant number for a program year 2004 formula grant would be 0468100. • Pending Status – Pending status indicates the grant plan information is locked and ready for review by DCEO. • Program Year (PY) – A program year is designated as July 1 – June 30.

47. Grant Definitions • Quarter (Qtr) – Quarters are three month periods based on the program year. • Qtr. 1 is July 1 – September 30 • Qtr. 2 is October 1 – December 31 • Qtr. 3 is January 1 – March 31 • Qtr. 4 is April 1 – June 30 • Reallocated Funds - Reallocated funds given to the LWAs by the state.

48. Grant Definitions • Rescissions - Funds taken away from the state by DOL (distributed among the LWAs). • Supplemental Allocation - Supplemental allocations given to the state by DOL and redistributed to the LWAs (this includes reallotments). • TAA Grants – TAA grants assist individuals who have become unemployed as a result of increased imports from, or shifts in production to, foreign countries.

49. Suggested Grant Planning Roles • LWA Staff • One of the following: • LWA System Administrator – This role allows local area users the ability to have all of the local roles and assign roles to staff at the local level. Generally there is only one staff member assigned to this role. • LWA Grants Planner – This role allows local area users the ability to add grant plans into IWDS • LWA Grants View Only – This role allows local area users the ability to only view local grant plans in IWDS.

50. Suggested Grant Planning Roles • LWA Staff (con’t) • And • Grants Reports - This role allows users the ability to produce grant reports in IWDS. • Summary Reports – This role allows users the ability to produce summary reports in IWDS. • Participant Reports – This role allows users the ability to produce participant reports in IWDS.