Revised modification process for National Emergency Grants

The signed original contains the same letter. View the signed original.

                                                          CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 National Emergency Grants
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OGM
             Washington, D.C. 20210                       DATE
                                                          January 6, 2015


ADVISORY:        TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 17-14

TO:              STATE WORKFORCE AGENCIES
                 STATE WORKFORCE ADMINISTRATORS
                 STATE AND LOCAL WORKFORCE INVESTMENT BOARD CHAIRS and
                 DIRECTORS
                 STATE LABOR COMMISSIONERS

FROM:            PORTIA WU /s/
                 Assistant Secretary

SUBJECT:         National Emergency Grant Revised Modification Process

1. Purpose. To notify National Emergency Grant (NEG) grantees of changes to the
   Employment and Training Administration’s (ETA’s) NEG modification process. These
   revised procedures are effective immediately.

2. References.

   •   Workforce Investment Act (WIA), section 173 (29 U.S.C. 2918), as amended
   •   WIA regulations at 20 CFR part 671
   •   Training and Employment Guidance Letter (TEGL) No. 16-03 “National Emergency
       Grant (NEG) Policy Guidance,” dated January 26, 2004
   •   TEGL No. 16-03, Changes 1, 2, 4 and 5, “National Emergency Grant (NEG) Policy
       Guidance”
   •   “Workforce Investment Act: National Emergency Grants – Application Procedures,” 69
       Federal Register Notice 23052 (April 27, 2004)
   •   Training and Employment Notice (TEN) 32-10, “Revised National Emergency Grant
       Application Submission and Review Process,” dated March 30, 2011
   •   Information Collection Forms – ETA 9103, 9104, 9105, 9106, 9107 (OMB Control No.
       1205-0439)

3. Background. NEGs are discretionary grants awarded by the Secretary of Labor under
   section 173 of the WIA, as amended, to provide employment-related services to dislocated
   workers. NEGs are intended to temporarily expand service capacity at the state and local
   levels by providing funding assistance in response to significant dislocation events. These
   events include plant closures and mass layoffs, as well as others recognized by the Secretary
   under 20 CFR 671.110(f) that create a sudden need for assistance that cannot be


 RESCISSIONS                                              EXPIRATION DATE
 None                                                     Continuing

accommodated within the ongoing operations of the WIA Dislocated Worker formula
program.

Applications for NEG funds and subsequent modification requests are submitted via ETA’s
NEG electronic application system (eSystem). Appropriate information is transmitted using
Office of Management and Budget (OMB) approved forms. A list of the forms that generally
comprise a full NEG application follows, along with the general purpose of each:

•   SF-424 – Application for Federal Assistance (OMB No. 4040-0004) – A standard form
    for all Federal grant applications that provides basic applicant and project information
•   SF-424A – Budget Information Form for Non-Construction Programs (OMB No. 4040-
    0006) – A standard form that provides planned line item costs in several broad categories
•   SF-424A Budget Information Narrative (OMB No. 1205-0439) – A narrative explanation
    for the Contractual and Other line items of the SF-424A
•   Project Synopsis Form – ETA 9106 (OMB No. 1205-0439) – This form describes the
    event that occurred to make the NEG necessary, along with the planned activities. The
    form also conveys other pertinent information, such as performance goals, cost-per-
    participant, etc.
•   Employer Data Form(s) – ETA 9105 (OMB No. 1205-0439) – This form provides
    information about the employer(s) from which the worker group was dislocated, layoff
    data and number of affected workers, as well as other information, such as the Rapid
    Response actions taken
•   Project Operator Data Form(s) – ETA 9107 (OMB No. 1205-0439) – This form conveys
    what organization(s) will deliver services and manage the day-to-day operations of the
    NEG
•   Planning Form – ETA 9103 (OMB No. 1205-0439) – This form conveys the planned
    expenditures and enrollments through the life of the project
•   Narrative Statements (OMB No. 1205-0439) – These provide additional information to
    clarify or enhance certain parts of the application that are not captured on the
    aforementioned forms or in other uploaded documents

The NEG eSystem automated a large portion of the application process. The NEG eSystem
was designed to streamline the application process for NEG applicants, as well as to request
changes to their existing NEGs through modification requests. In 2011, ETA improved the
application process further by making materials, such as checklists and guidebooks, available
as reference tools to help applicants prepare NEG applications. Hyperlinks to these reference
tools are available in TEN 32-10.

In 2012, ETA developed tools to help grantees better understand NEG modification
requirements. Using the feedback it received, ETA identified opportunities to further
improve and streamline the NEG modification process. This TEGL relays additional
improvements made to streamline the NEG modification process and provides information
on resource materials developed to support the new process.

4. Revised Modification Requirements. The Department released the latest version of the
   NEG eSystem earlier this year, which incorporated the revisions to the NEG modification
   process. Previously, grantees were required to update and resubmit all application forms
   with each modification request. The NEG eSystem now prompts grantees for information
   required to complete only information critical to the modification type being requested. This
   significantly reduces the number of revisions/forms needed for most modification types.

   Key changes include:

   •   Period of Performance Change or Budget Realignment – Only two forms are now needed
       to change the period of performance or realign the budget
   •   Add New Employers – Within the Program Year of the grant award, grantees need only
       complete a new Employer Data Form for the employer to be added
   •   The Planning Form is no longer required for several types of modification requests
   •   Modifications are no longer required to add layoffs from employers approved in the
       initial application, to increase the number of participants, or to add or remove a project
       operator

5. Requests for Clarification and Requests for Recall (Withdrawal). If a modification
   request needs additional information and/or must be withdrawn, this will be communicated to
   the grantee via the NEG eSystem through the Request for Clarification or Request for Recall
   (Withdrawal) functions.

   In addition to direct communication from the ETA Federal Project Officer, grantees will be
   notified via an e-mail from the NEG eSystem if a clarification is needed, and the request will
   remain in the queue, on hold, while awaiting the grantee’s response. The grantee should
   submit a response to the Request for Clarification through the NEG eSystem. Responses to
   Requests for Clarification must be made within five business days.

   Grantees may also be asked to recall modification requests that require revisions in order to
   move the request forward. This process is called a Request for Recall. Grantees will be
   notified via an e-mail from the NEG eSystem if a recall is needed. A Request for Recall must
   also be addressed within five business days.

   If a grantee does not respond to, or address, a Request for Clarification or a Request for
   Recall within the five business day period, then ETA may return the modification request to
   draft status.

   As stated in TEN 32-10, applicants/grantees that take advantage of regional office technical
   assistance when developing their submissions submit higher quality documents, which reduce
   analysis and processing times. As a result, the ETA regional office review of draft NEG
   applications and modification requests is a formal component of the review and analysis
   process. Grantees are strongly encouraged to consult with their regional office
   representatives when preparing their modification request submissions.

6. Workforce Innovation and Opportunity Act (WIOA). Under WIOA, the grants currently
   known as NEGs will become National Dislocated Worker Grants. Regulations and broader
   guidance associated with these new grants, and any resulting impact on the grant
   modification process, will be forthcoming as a part of the implementation of WIOA.

7. Paperwork Reduction Act (PRA) Statement. According to the PRA, no persons are
   required to respond to a collection of information unless such collection displays a valid
   OMB Control Number. The Department notes that a Federal agency may not conduct or
   sponsor a collection of information, nor is the public required to respond to a collection of
   information unless it is approved by OMB under the PRA, and displays a currently valid
   OMB Control Number (44 U.S.C. 3507). Also, notwithstanding any other provisions of law,
   no person shall be subject to penalty for failing to comply with a collection of information if
   the collection of information does not display a currently valid OMB Control Number (44
   U.S.C. 3512). The currently valid OMB Control Number for this collection is OMB 1205-
   0439.

8. Inquiries. Please direct questions regarding this guidance to the appropriate ETA Regional
   Office.

9. NEG Modification Resources. ETA has made resources available to assist with the revised
   modification process at http://www.doleta.gov/neg/NEG_Application_Tools.cfm:

   •   List of Common Modification Types and New Modification Requirements
   •   Modification Checklists