Use of JTPA six percent funds for information system redesign

Training and Employment Guidance Letter No. 2-92

Issue date: December 23, 1992
Classification: JTPA
Correspondence symbol: TD
Expiration date: Continuing

TO: All ETA Staff

FROM: Roberts T. Jones, Assistant Secretary of Labor

SUBJECT: Use of JTPA Section 202(b)(3) Funds for Management Information System (MIS) Redesign

Purpose. To issue policy on the use of Program Year (PY) 1992 "six percent" funds under section 202(b)(3) of JTPA.

Background. Section 143(a) of the 1992 Amendments to JTPA provides that "standardized records for all individual participants" shall be maintained by Service Delivery Areas (SDAs). Such records are to be made available to the Secretary "to facilitate the uniform compilation, cross tabulation, and analysis of programmatic, participant, and financial data, on statewide and service delivery area bases," pursuant to Section 143(c) of the Amendments. The Employment and Training Administration (ETA) has for some time been concerned about the need for more meaningful feedback on whether policies that create changes in program design and client targeting actually result in program improvements. Effective program management is dependent on adequate and timely information on what local JTPA programs are accomplishing and how they are achieving these results. In addition, there has been a need for uniform participant-level data that will address important issues regarding program accountability, such as the scope of services and the nature of employment that JTPA is providing to participants, particularly the hardest-to-serve. These concerns have culminated in the development of the Standardized Program Information Reporting (SPIR) system, which was published in final form in the Federal Register on November 12, 1992. In addition, the Department's Directorate of Civil Rights has issued regulations that may affect reporting and record keeping requirements. To comply with DCR and SPIR requirements, State and SDA management information systems may have to be redesigned.

Policy. Section 202(b)(3)(B) provides that funds shall be used "to provide incentive grants . . . If the full amount reserved . . . is not needed to make incentive grants . . . the Governor shall use the amount not so needed for technical assistance . . . ." Pursuant to the authority granted to the Secretary at Section 701(i) of the Amendments to issue procedures necessary for the orderly implementation of the Amendments, the following policy guidance is provided:

a. Technical assistance funds under Section 202(b)(3) of the Amendments may be used if needed for MIS redesign to accommodate the SPIR and DCR data collection requirements.

b. Incentive funds awarded to SDAs may be used by the SDAs for local MIS redesign, or they may be returned to the State if SDAs wish to participate in a statewide MIS redesign.

c. Subject to a. and b., PY 1992 Section 202(b)(3) "six percent" funds may be used for purposes of MIS redesign. In addition, any unexpended Section 202(b)(3) funds from prior years may be used, if still available.

d. PY 1992 funds need not be spent in PY 1992. They may be expended for such purposes next year or even in PY 1994 if not expended earlier.

Action. If MIS redesign is necessary to meet the new SPIR reporting requirements and the nondiscrimination and equal opportunity requirements of the Amendments, States and SDAs may do so immediately, using their "six percent" funds.