Background: The Cost Allocation TAG was developed by a joint federal, state, and local workgroup in order to provide flexible approaches to cost allocation for one-stop programs and other forms of integrated service delivery systems. The TAG proposes alternative cost allocation methodologies focusing on bottom-line measures of benefit based on outputs. Earlier drafts of the TAG have been circulated for review and comment throughout the employment and training system during the past year. Training on the TAG's methodology has also been provided in numerous locations throughout the country. The TAG has now been edited and revised in response to the comments received during this period and is being issued in a "Pilot Release" version dated April 24, 1996. This version is substantively the same as the one used for the training sessions, except for the additions and edits that were suggested during the comment and training period. OMB and Federal Agency Approval: The TAG has been approved for field testing on a pilot basis by the Office of Management and Budget (OMB) as well as by the following federal agencies: the Department of Labor (DOL) Employment and Training Administration, DOL Office of Inspector General and Office of Cost Determination; the Department of Health and Human Services (HHS) Division of Cost Allocation; and the Department of Education (DOE) Office of Indirect Cost Determination. A copy of OMB's approval letter is attached. Federal funds being used to provide integrated employment and training services at the state and local levels may be included in piloting the TAG. DOL Support for the Pilot: The U.S. Department of Labor will fully support the pilot in the following manner: Provide technical assistance and training to the fullest extent of our available resources; Gather information from each pilot site and disseminate it to the other pilot sites regarding the design of the delivery system, agreements reached, progress being made, results achieved, problems encountered and solutions found; With the concurrence of the DOL Office of Inspector General and other federal offices, hold the pilot sites harmless for any cost issues arising specifically from use of the TAG, so that they will not have costs questioned or disallowed because of their use of the TAG's methodologies for allocating costs. After the pilot sites are selected, DOL will be available to meet with representatives from the pilot sites in order to provide additional training on the TAG and to exchange ideas on how to implement the TAG. Test Parameters: The methodologies to be tested are presented in the "Pilot Release" version of the Cost Allocation TAG entitled "Sharing Resources to Provide Integrated Services" dated April 24, 1996. Following are the parameters for the field test. Pilots may be conducted on a statewide basis or in selected jurisdictions which are in the process of implementing one-stop or other forms of integrated service delivery systems. As service delivery system designs may vary widely, the exact scope of the test at each site will be individually negotiated with DOL. Staff at each pilot site will be authorized to use the methodologies presented in the TAG. DOL and the State will provide technical assistance to staff at each pilot site throughout the test period. Each pilot will run through one complete program funding cycle or at least one program year. Each pilot site must receive clearance from the State, its audit agency, and DOL before the test begins. Each pilot site will maintain historical and contemporaneous information sufficient to conduct a comparative evaluation of the results of allocating costs based on the TAG methodologies vs. traditional methods. Criteria for Pilot Site Selection: In order to be an approved pilot site, a State must submit a written application to pilot the TAG and provide information on the pilot sites as noted below. The TAG may be piloted either on a statewide basis or in selected local jurisdictions. The pilot sites will be selected from among those states or local jurisdictions which volunteer to pilot the TAG and agree to fully cooperate with the pilot effort. The number of pilot sites may be limited in order to provide adequate support for the sites that are selected. Consequently, some sites which volunteer may not be selected. Selections will be based on the extent of state and local support for the pilot; a diverse mix of management structures, funding sources, and program designs; and the configuration of pilot sites that will permit the highest level of federal and state support for the pilots. The Department of Labor will seek diversity among the pilot sites in order to include different forms of organization, delivery systems, and fund sources. Therefore, we request that the State provide information about the proposed pilot site(s) by responding to the following questionnaire. Application Questionnaire 1. Describe the scope of the pilot. Will the pilot be conducted on a statewide basis or only in selected local jurisdictions? If on a statewide basis, identify the total number of pilot sites to be created at the local level. If in selected local jurisdictions only, identify them by name and address, whether they are urban/suburban/rural, and whether they are managed by a single agency or by multiple autonomous agencies. 2. What funds will be included in the pilot (e.g., JTPA, JOBS, Employment Service, Unemployment Insurance, Vocational Education, etc.)? 3. Which, if any, pilot sites have received one-stop implementation grants or otherwise initiated a one-stop or other form of integrated program delivery system? Briefly describe how the pilot site programs are designed to achieve universal access, integrated services, integrated governance, and performance measurement. 4. What are the proposed starting and ending dates for the pilot(s)? (The pilots should begin as soon as possible and operate at a minimum through one complete funding cycle or one program year.) 5. Affirm that the state and all affected local jurisdictions agree to: Fully cooperate with and support the effort to pilot the TAG at the proposed pilot sites; Share with federal agencies all relevant information and reports about the pilot; Allow federal and state staff to review the pilot on-site; Evaluate the results of the pilot both during and at the end of the pilot period. 6. Add any additional information that should be considered in determining whether the proposed pilot sites should be selected. 7. Identify a contact person at the state level and for each pilot site by name, address, phone number, fax number, and internet address. Action: In order to allow for as much lead time as possible for implementing the pilots, we are seeking a quick turnaround to this survey. If you are interested in piloting the TAG, submit your application in response to the questionnaire as soon as possible. The initial selection of pilot sites will be made from among the applications received by September 20, 1996. DOL will notify the State contact person of the selections for the pilot sites shortly thereafter. Your application should be directed to the following Chicago Regional Office address with a copy to your own Regional Office: Barry S. Dale USDOL/ETA 6th Floor 230 S. Dearborn Chicago, IL 60604 Fax: 312-353-4474

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Reference: Training and Employment Information Notice (TEIN) No. 49-93, Capacity Building Strategy Paper; TEIN No. 15-94, Status of Job Training Partnership Act (JTPA) Program Year 1994 Capacity Building Pilot Projects; and TEIN No. 4-93, JTPA Case Management Technical Assistance Guide. Background: The CD-ROM version of the Case Management TAG is number three in a series of five multimedia training modules originally designed to enhance wide-spread knowledge of the contents of the TAGs developed in 1993 and 1994 to help employment and training program administrators and practitioners achieve full implementation of the Job Training Partnership Act (JTPA) Amendments of 1992. However, with the current emphasis on One-Stop Career Systems, and the rapid changes local program operators are facing in light of proposed new legislation, this training module, and future modules, will focus on programs and initiatives beyond JTPA. The first module covered the JTPA Title II Eligibility Documentation TAG, and was distributed in the summer of 1995. The second module covered the Assessment/Individual Service Strategy (ISS) TAG, and was distributed in the spring of 1996. Follow-up data indicates that users of these training CDs are pleased with this training medium. Future training modules will be: Targeting, Outreach and Recruitment, and Total Quality Management and Continuous Improvement. As training modules are completed, they will be announced and later distributed via TEINs to the system. The training modules are being developed through a cooperative agreement with the State of Missouri; the Missouri Training Institute; and various staff experts from the Federal, State, and Service Delivery and Substate Areas, including the Professional Development and Training Panel (formerly the Panel of Experts). The multimedia modules will allow training to be standardized and available at individual workstations at every level of the employment and training system. The CD-ROM has been demonstrated and well received by employment and training staff in the system, and has been showcased at conferences such as the Missouri Governor's Conference on Workforce Development, the National Association of Workforce Development Professionals (NAWDP) Conference, and the Joint Employment and Training Technology Conference (JETT*CON). Training Module Format: Working from a CD-ROM drive, the user will have the capability to interact with the training package from beginning to end. The CD is equipped with audio, video, graphics and animation that are directly related to the contents of the TAG. Using the mouse or via the keyboard, users will be able to advance through the training module and receive immediate feedback from built-in exercises at their own pace. This module also includes a pre- and post-test that can be saved to your hard drive and printed out. It is estimated that the CD-ROM version can be completed in 2.5 - 3.0 uninterrupted hours, and its design is such that a user can learn in shorter segments. System Requirements: Below are specifications for minimum and optimum requirements to install and run the Case Management training module. Desired hardware configurations: IBM PS/2 or compatible Intel-based microcomputer capable of running Microsoft Windows 3.1, Windows 95, or Windows NT Pentium processor (at least 75 Mhz) 12 megabytes of memory SoundBlaster compatible sound card A high resolution color monitor (XVGA or SVGA) capable of displaying thousands of colors Quadruple speed CD-ROM drive Minimal hardware configurations: 486 processor (at least 66 Mhz) 8 megabytes of memory SoundBlaster compatible sound card A high resolution color monitor (XVGA or SVGA) capable of displaying thousands of colors A double speed CD-ROM drive Software: Movie drivers (video drivers are included on the CD) Necessary fonts (included on the CD) Microsoft Windows 3.1, Windows 95, or Windows NT SoundBlaster compatible sound card driver Distribution: Copies of the CD-ROM version of the Case Management training module are being provided under separate cover to all State Liaisons for distribution to: SDAs (3 copies each); State Worker Adjustment Liaison (1 copy); One-Stop Career Center System Lead (1 copy): State Employment Security Agency Administrator (1 copy); and State JTPA agency (balance of copies). Copies will also be sent to ETA Regional Offices, Public Interest Groups and Community-Based Organizations. Members of the Professional Development and Training Panel will also receive one copy each. Technical Assistance: Instructions for installing and running the Case Management training module are included in each CD-ROM mailer. Requests for additional technical assistance and additional CDs should be referred to the Missouri Training Institute at 573-882-2860.

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Background. Designation procedures for Native American grantees are contained at 20 CFR, sections 632.10 Eligibility requirements for designation as a Native American grantee, and 632.11 Designation of Native American grantees. Pursuant to these requirements, the Department of Labor (DOL) designates entities as eligible grantees to administer section 401 grants that provide employment and training services to Indians and Native Americans. The attached Federal Register notice describes the Department's PY 1997-98 designation process. The JTPA section 401 program is a formula-funded program which is limited to designated grantees. An entity which has been designated as a section 401 grantee becomes eligible to apply for title IV-A program funds and, as appropriate, title II-B Summer Youth program funds without further competition. Grantees are awarded their annual formula grant allocation upon approval of their annual plan(s). The waiver of competition provision of section 401(l) of the Act was utilized two years ago for the PY 1995-96 designation cycle, and will not be used for the PY 1997-98 designation cycle. To facilitate the implementation of the demonstration project, tribal entities participating under Public Law 102-477 are exempted from designation cycle competitions. The notice of intent process, which is described in the attached Federal Register notice, consists of two steps. The first step, the Advance Notice of Intent, is optional. The second step, the Final Notice of Intent, is mandatory. For current section 401 grantees, a copy of your present designated service area is attached for your reference. Action Required. All entities interested in applying for designation as a JTPA section 401 grantee for PYs 1997 and 1998 need to follow the instructions set forth in the attached Federal Register notice. The Department has decided to utilize a free-form exercise for the Advance Notice of Intent process this year, even though optional forms and instructions for the ANOI process have been issued in prior designation announcements. Grantees participating in the ANOI process may use any format they choose, so long as they clearly state the service area(s) being applied for by State(s), counties, and reservation(s). They should also indicate which of these jurisdictions are not currently part of their service area. Inquiries. Questions should be directed to your Federal representative or Mr. Greg Gross at (202) 219-7509 or Internet E-Mail [grossg@doleta.gov].

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