SCSEP performance measures for Program Year 2007

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2007/TEGL30-06acc.pdf

CLASSIFICATION
     EMPLOYMENT AND TRAINING                        SCSEP/Performance Reporting
   ADMINISTRATION ADVISORY SYSTEM                   CORRESPONDENCE SYMBOL
      U.S. DEPARTMENT OF LABOR                      PROTECH
           Washington, D.C. 20210
                                                    DATE
                                                    June 21, 2007


ADVISORY:       TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 30-06

TO:             ALL SENIOR COMMUNITY SERVICE EMPLOYMENT
                PROGRAM (SCSEP) GRANTEES

FROM:           EMILY STOVER DeROCCO /s/
                Assistant Secretary

SUBJECT:        SCSEP Performance Measures and Goals for Program Year 2007

1. Purpose. To provide all SCSEP grantees with the notice of proposed revised
   performance measures policy that will become effective at the beginning of Program
   Year (PY) 2007 (July 1, 2007), and to describe the process for reaching agreement on
   PY 2007 performance goals for the designated core measures.

2. References. 2006 Amendments to the Older Americans Act (OAA-2006), Public Law
   (Pub. L.) 109-365; 20 CFR Part 641.

3. Background. On October 17, 2006, President Bush signed into law OAA-2006.
   Title V of OAA-2006 authorizes the Senior Community Service Employment Program
   (SCSEP). The law requires the Department of Labor (DOL) to establish and
   implement new SCSEP measures of performance by the start of PY 2007 after
   consultation with stakeholders and to reach agreement with grantees on performance
   goals prior to the awarding of grants. DOL solicited stakeholder input on the
   definition and implementation of the performance indicators through a Federal
   Register notice, 72 Federal Register 5999 (February 8, 2007). A summary of the
   resulting comments will be posted on the SCSEP Web site (www.doleta.gov/seniors).
   DOL considered these comments in developing the soon-to-be-published Interim
   Final Rule on SCSEP performance accountability. This guidance letter provides
   notice of the OAA-2006 performance measures requirements in order to facilitate the


  RESCISSIONS                                       EXPIRATION DATE
  Older Worker Bulletin 04-06                       Continuing


   process for reaching agreement on PY 2007 performance goals. This guidance is
   intended to be consistent with requirements of the forthcoming Interim Final Rule on
   SCSEP Performance Accountability. Grantees are expected to follow this guidance in
   establishing goals for PY 2007.

4. Performance Measures.
   A. Core Indicators. Section 513(b)(1) of OAA-2006 establishes the following core
      indicators of performance:
        1. Hours (in the aggregate) of community service employment;
        2. Entry into unsubsidized employment;
        3. Retention in unsubsidized employment for six months;
        4. Earnings;
        5. The number of eligible individuals served; and
        6. The number of most-in-need individuals served (the number of participating
         individuals described in Subsection (a)(3)(B)(ii) or (b)(2) of Section 518).

   B. Additional Indicators. Section 513(b)(2) of OAA-2006 establishes the following
      additional indicators of performance:
        1. Retention in unsubsidized employment for one year;
        2. Satisfaction of the participants, employers, and their host agencies with their
         experiences and the services provided; and
        3. Any other indicators of performance that the Secretary determines to be
         appropriate to evaluate services and performance.

   C. The core indicators and additional indicators of performance are applicable to
      each grantee without regard to whether such grantee operates the program
      directly or through sub-recipients. Grantees must assure that their subrecipients
      are collecting and reporting program data. (Section 513(a)(1) of OAA-2006)

   D. Section 513(a)(3) of OAA-2006 requires that SCSEP grantees agree to be evaluated
      on the core indicators of performance and to report information on the additional
      indicators of performance, both as an eligibility requirement for application, and
      as a condition for award.

5. Definitions of Performance Indicators.
   A. DOL anticipates that the Interim Final Rule on SCSEP Performance Accountability
      will define the core indicators as follows:

        1. “Hours of community service employment” is defined as the total number of
         hours of community service provided by SCSEP participants divided by the
         number of hours of community service funded by the grant, after adjusting for


   differences in minimum wage among the states and areas. Paid training hours
   are excluded from this measure.

2. “Entry into unsubsidized employment” is defined by the following formula: of
   those who are not employed at the date of participation, the number of
   participants who are employed in the first quarter after the exit quarter
   divided by the number of adult participants who exit during the quarter.

3. “Retention in unsubsidized employment for six months” is defined by the
   following formula: of those who are employed in the first quarter after the exit
   quarter, the number of adult participants who are employed in both the second
   and third quarters after the exit quarter divided by the number of adult
   participants who exit during the quarter.

4. “Earnings” is defined by the following formula: of those participants who are
   employed in the first, second and third quarters after the exit quarter, total
   earnings in the second quarter plus total earnings in the third quarter after the
   exit quarter divided by the number of participants who exit during the quarter.

5. “The number of eligible individuals served” is defined as the total number of
   participants served divided by a grantee’s authorized number of positions,
   after adjusting for differences in minimum wage among the states and areas.

6. “Most-in-need,” or “the number of participating individuals described in
   subsection (a)(3)(B)(ii) or (b)(2) of Section 518,” is defined by counting the total
   number of the following characteristics for all participants and dividing by the
   number of participants served. As discussed in the attachment, participants
   are characterized as most-in-need if they:
       a. have a severe disability
       b. are frail
       c. are age 75 or older
       d. meet the eligibility requirements related to age for, but do not receive,
          benefits under Title II of the Social Security Act (42 U.S.C. 401 et seq.)
       e. live in an area with persistent unemployment and are individuals with
          severely limited employment prospects
       f. have limited English proficiency
       g. have low literacy skills
       h. have a disability
       i. reside in a rural area
       j. are veterans who meet the criteria of the Jobs for Veterans Act
          (Pub. L. 107-288)
       k. have low employment prospects


             l. have failed to find employment after utilizing services provided under
                title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.)
             m. are homeless or at risk for homelessness

   B. DOL anticipates that the Interim Final Rule on SCSEP Performance Accountability
      will define the additional indicators as follows:

        1. “Retention in unsubsidized employment for one year” is defined by the
         following formula: of those who are employed in the first quarter after the exit
         quarter, the number of participants who are employed in the fourth quarter
         after the exit quarter divided by the number of participants who exit during
         the quarter.

        2. “Satisfaction of the participants, employers, and their host agencies with their
         experiences and the services provided” is defined as the results of customer
         satisfaction surveys administered to each of these three customer groups. DOL
         will prescribe the content of the surveys.

6. Reaching Agreement on Performance Goals.
   A. Initial agreement. DOL anticipates that the Interim Final Rule on SCSEP
      Performance Accountability will establish that before the beginning of each
      program year DOL and each grantee will reach agreement on expected levels of
      performance for each core indicator. However, for the “most-in-need” measure,
      PY 2007 will serve as a baseline year. (See Section 6(B) below.) DOL anticipates
      that the IFR will establish the following steps, based on the procedures established
      in 20 CFR 641.730:

        1. DOL will propose a baseline performance level for each core indicator, taking
         into account any statutory performance requirements; the need to promote
         continuous improvement in the program overall and for each grantee; the
         grantee’s past performance; and the statutory adjustment factors articulated in
         paragraph 7 (A)-(E) below.

        2. A grantee may then request a revision to DOL’s initial performance level goal
         determination. The grantee must base the request on supporting data which
         may concern the statutory adjustment factors articulated in Section 513
         (a)(2)(C) of OAA-2006, but is not limited to those factors. It is permissible for a
         grantee to supply data on “other appropriate factors as determined by the
         Secretary.”

        3. DOL may thereafter revise the performance level goal in response to the data
         provided. DOL will then establish the expected levels of performance for the
         core indicators by June 22. Grantees who agree with the expected level of


         performance may then be awarded their PY 2007 funds. If a grantee does not
         agree with the expected level of performance, DOL may not award any funds.
         A grantee may submit comments to DOL regarding the grantee’s satisfaction
         with the expected levels of performance.

        4. At the conclusion of negotiations concerning the performance levels with all
         grantees, DOL will make available for public review the final negotiated
         expected levels of performance for each grantee, including any comments
         submitted by the grantee regarding the grantee's satisfaction with the
         negotiated levels. (Section 513(a)(2)(C) of OAA-2006)

        5. The minimum percentage for the expected level of performance for the entry
         into unsubsidized employment core indicators for each grantee is:
             a. twenty one percent for PY 2007
             b. twenty two percent for PY 2008
             c. twenty three percent for PY 2009
             d. twenty four percent for PY 2010
             e. twenty five percent for PY 2011
         (Section 513(a)(2)(E)(ii)(I-V) of OAA-2006)

   B. Exception for most-in-need for PY 2007. Because OAA-2006 expanded the list of
      most-in-need characteristics, neither DOL nor the grantees will have sufficient
      data to set a goal for measuring performance for PY 2007. Accordingly, DOL
      anticipates that the Interim Final Rule on SCSEP Performance Accountability will
      establish that PY 2007 will be treated as a baseline year for the most-in-need
      indicator, so that the grantees and DOL may collect sufficient data to set a
      meaningful goal for this measure for PY 2008. This is the only indicator that will
      not have an expected level of performance for PY 2007.

7. Goal Adjustments during the Program Year. DOL anticipates that the Interim Final
   Rule on SCSEP Performance Accountability will establish that after DOL and grantees
   reach agreement on the core indicator levels, those levels may only be revised in
   response to a request from a grantee based on data supporting one or more of the
   following statutory adjustment factors in Section 513(a)(2)(C) of OAA-2006:

   A. High rates of unemployment or of poverty or of participation in the Temporary
      Assistance for Needy Families (TANF) program established under Part A of title
      IV of the Social Security Act (42 U.S.C. 601 et seq.), in the areas served by a
      grantee, relative to other areas of the state involved or Nation;

   B. Significant downturns in the areas served by the grantee or in the national
      economy;


   C. Significant numbers or proportions of participants with one or more barriers to
      employment, including individuals described in Subsection (a)(3)(B)(ii) or (b)(2) of
      Section 518 as amended by Pub. L. 109-365 (most-in-need), served by a grantee
      relative to such numbers or proportions for grantees serving other areas of the
      state or Nation;

   D. Changes in Federal, state, or local minimum wage requirements; and

   E. Limited economies of scale for the provision of community service employment
      and other authorized activities in the areas served by the grantee.

8. PY 2007 Grant Applications. Upon the establishment of final goals as described in
   Section 6(a), DOL anticipates that each applicant will draft a performance narrative
   for inclusion in its PY 2007 grant application. DOL anticipates that the Interim Final
   Rule on SCSEP Performance Accountability will establish that all applicants must
   address the steps they will take to meet their PY 2007 goals. In addition, DOL
   anticipates that the Interim Final Rule on SCSEP Performance Accountability will
   establish that any applicant whose PY 2006 baseline performance indicates that it will
   not achieve its PY 2006 goal on any performance measure must describe the steps it is
   taking to correct the deficiency. Further, DOL anticipates that the Interim Final Rule
   on SCSEP Performance Accountability will establish that the applicant must
   specifically indicate how it will meet its goal for that measure in PY 2007. DOL
   anticipates that the grantee's regional Federal Project Officer shall review the
   performance narrative and request changes if appropriate. Upon approval by the
   regional Federal Project Officer, DOL anticipates that the narrative will be included in
   the grantee's PY 2007 grant award.

9. Aggregate Calculation of Performance. DOL anticipates that the practice
   established in 20 CFR 641.740(a) of evaluating grantee performance in the aggregate
   will continue. Not later than 120 days after the end of each program year, DOL will
   determine whether a grantee has met the expected levels of performance (including
   any adjustments to such levels) by aggregating the grantee’s core indicators. The
   aggregate is calculated by combining the percentage of goal achieved on each of the
   individual core indicators to obtain an average score. A grantee will fail to meet its
   performance measures when it does not meet 80 percent of the agreed-upon level of
   performance for the aggregate of all the core indicators. Performance in the range of
   80 to 100 percent constitutes meeting the level for the core performance measures.
   Performance in excess of 100 percent constitutes exceeding the level for the core
   performance measures.

10. Technical Assistance and Corrective Efforts.
    A. Section 513(d)(1)(A) of OAA-2006 requires that as soon as practicable after
       July 1, 2007, DOL will determine if a SCSEP grantee has met the expected levels of


   performance in PY 2006 for the agreed to performance goals established for PY
   2007. If DOL determines that the grantee failed to meet PY 2007 goals in PY 2006,
   DOL will provide technical assistance to help the grantee meet those expected
   levels of performance in PY 2007.

B. Section 513(d) of OAA-2006 prescribes technical assistance and corrective efforts
   that should be implemented if grantees fail to meet the performance measures
   described in this document. DOL will determine whether a grantee fails, meets, or
   exceeds agreed upon levels of performance for the core indicators. The statute
   describes the consequences for failing to meet the performance levels as follows:

    1. National Grantees
      a. Determination: Not later than 120 days after the end of each program year,
         DOL will determine if a national grantee has met the expected levels of
         performance (including any adjustments to such levels) for the core
         indicators of performance. (Section 513(d)(2)(A) of OAA-2006)

      b. Consequences:
         i. If DOL determines that a national grantee fails to meet the expected
              levels of performance, after each year of such failure, DOL will provide
              technical assistance and will require such grantee to submit a corrective
              action plan not later than 160 days after the end of the program year.
         ii. The corrective action plan must detail the steps the grantee will take to
              meet the expected levels of performance in the next program year.
         iii. Any national grantee that has failed to meet the expected levels of
              performance for four consecutive years (beginning with PY 2007) will
              not be allowed to compete in the subsequent grant competition but may
              compete in the next such grant competition after the subsequent
              competition. (Section 513(d)(2)(B) of OAA-2006)

    2. State Grantees
      a. Determination: Not later than 120 days after the end of each program year,
         DOL will determine if a state grantee has met the expected levels of
         performance (including any adjustments to such levels) for the core
         indicators of performance. (Section 513(d)(3)(A) of OAA-2006)

      b. Consequences:
         i. If DOL determines that a state fails to meet the expected levels of
             performance, DOL after each year of such failure, will provide technical
             assistance and will require the state to submit a corrective action plan
             not later than 160 days after the end of the program year.
         ii. The corrective action plan must detail the steps the state will take to
             meet the expected levels of performance in the next program year.


              iii. If DOL determines that the state fails to meet the expected levels of
                   performance for three consecutive program years (beginning with
                   PY 2007), DOL will require the state to conduct a competition to award
                   the funds allotted to the state under Section 506(e) of OAA-2006 for the
                   first full program year following its determination. The new grantee
                   will be responsible for administering the SCSEP in the state and will be
                   subject to the same requirements and responsibilities as the former state
                   grantee. (Section 513(d)(3)(B) of OAA-2006)

        3. Evaluation: DOL anticipates that we will annually evaluate, publish, and
          make available for public review, information on the actual performance of
          each grantee with respect to the levels achieved for each of the core indicators
          of performance, compared to the expected levels of performance, and the
          actual performance of each grantee with respect to the levels achieved for each
          of the additional indicators of performance. The results of DOL’s annual
          evaluation will be reported to Congress. (Section 513(c) of OAA-2006)

11. Incentives. DOL is authorized by Section 517(c)(1) of OAA-2006 to use recaptured
    SCSEP funds to provide incentive awards. DOL will issue future guidance on
    financial and non-financial performance-related incentives, defining the timing,
    circumstances, standards, and procedures that DOL will use in exercising its
    discretion to provide awards.

12. Data Submission and Quality Requirements. DOL anticipates that we will continue
    the practice established in Older Worker Bulletin 04-06 of holding grantees
    accountable for submitting required SCSEP participant data to the SCSEP
    Performance and Results QPR (SPARQ) system in a timely manner. As specified in
    the General Special Clauses section of the SCSEP grant agreements, grantees who do
    not submit sufficient useable data may be subject to administrative penalties unless
    they can document that the failure to submit useable data was due to circumstances
    beyond their control. Administrative penalties for non-profit organizations are
    articulated at 29 CFR Section 95.62 and for state and local governments at 29 CFR
    Section 97.43.

13. Action Required. Grantees must review and use this guidance to prepare for the PY
    2007 goal setting process.

14. Inquiries. Questions should be directed to Judith Gilbert at (202) 693-3938
    ([email protected]) or the appropriate regional Federal Project Officer.

15. Attachment. Definitions of “Most-in-Need” Characteristics

Attachment 1 PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2007/TEGL30-06a1.pdf

Attachment: Definitions of “Most-in-Need” Characteristics

DOL anticipates that the Interim Final Rule on SCSEP Performance Accountability will establish
the following definitions:
At risk for homelessness means an individual is likely to become homeless and the individual lacks
the resources and support networks needed to obtain housing.
Disability means a disability attributable to mental or physical impairment, or a combination of
mental and physical impairments, that results in substantial functional limitations in one or more
of the following areas of major life activity: (A) self-care; (B) receptive and expressive language;
(C) learning; (D) mobility; (E) self-direction; (F) capacity for independent living; (G) economic
self-sufficiency; (H) cognitive functioning; and (I) emotional adjustment. (42 U.S.C. Section
3002(13))
Frail means an individual 55 years of age or older who is determined to be functionally impaired
because the individual-- (A)(i) is unable to perform at least two activities of daily living without
substantial human assistance, including verbal reminding, physical cueing, or supervision; or (ii)
at the option of the state, is unable to perform at least three such activities without such
assistance; or (B) due to a cognitive or other mental impairment, requires substantial supervision
because the individual behaves in a manner that poses a serious health or safety hazard to the
individual or to another individual. (42 U.S.C. Section 3002(22))
Homeless includes (1) an individual who lacks a fixed, regular, and adequate nighttime residence;
and (2) an individual who has a primary nighttime residence that is: A) a supervised publicly or
privately operated shelter designed to provide temporary living accommodations (including
welfare hotels, congregate shelters, and transitional housing for the mentally ill); B) an institution
that provides a temporary residence for individuals intended to be institutionalized; or C) a public
or private place not designed for, or ordinarily used as, a regular sleeping accommodations for
human beings. (42 U.S.C. Section 11302 (a))
Limited English proficiency means individuals who do not speak English as their primary
language and who have a limited ability to read, speak, write, or understand English.
Low employment prospects means the likelihood that an individual will not obtain employment
without the assistance of the SCSEP or another workforce development program. Persons with
low employment prospects have a significant barrier to employment. Significant barriers to
employment may include but are not limited to: lacking a substantial employment history, basic
skills, and/or English-language proficiency; lacking a high school diploma or the equivalent;
having a disability; being homeless; or residing in socially and economically isolated rural or
urban areas where employment opportunities are limited.
Low literacy skills means the individual computes or solves problems, reads, writes, or speaks at
or below the 8th grade level or is unable to compute or solve problems, read, write, or speak at a
level necessary to function on the job, in the individual’s family, or in society.


Persistent unemployment means that the annual average unemployment rate for a county or city is
more than 20 percent higher than the national average for two out of the last three years.
Rural means an area not designated as a metropolitan statistical area by the Census Bureau;
segments within metropolitan counties identified by codes 4 through 10 in the Rural Urban
Commuting Area (RUCA) system; and RUCA codes 2 and 3 for census tracts that are larger than
400 square miles and have population density of less than 30 people per square mile.
Severe disability means a severe, chronic disability attributable to mental or physical impairment,
or a combination of mental and physical impairments, that-- (A) is likely to continue indefinitely;
and (B) results in substantial functional limitation in 3 or more of the following areas of major life
activity: (i) self-care, (ii) receptive and expressive language, (iii) learning, (iv) mobility, (v) self-
direction, (vi) capacity for independent living, (vii) economic self-sufficiency. (42 U.S.C. Section
3002(48))
Severely limited employment prospects means a substantially higher likelihood that an individual
will not obtain employment without the assistance of the SCSEP or another workforce
development program. Persons with severely limited employment prospects have more than one
significant barrier to employment; significant barriers to employment may include but are not
limited to: lacking a substantial employment history, basic skills, and/or English-language
proficiency; lacking a high school diploma or the equivalent; having a disability; being homeless;
or residing in socially and economically isolated rural or urban areas where employment
opportunities are limited.
Veteran means an individual who is a “covered person” for purposes of the Jobs for Veterans Act,
38 U.S.C. Section 4215(a)(1).