1.2 Oversight and Monitoring

Previous Policy - 1.2.3 DWD-DET Coordinated Monitoring

Effective date: July 1, 2018 - June 31, 2022

The DWD-DET monitoring system must:

Provide for annual on-site monitoring reviews of each local area to ensure compliance with 2 CFR part 200, as required by WIOA section 184(a)(3), and 20 CFR § 683.410.
Ensure that established policies to achieve program quality and outcomes meet the objective of the Act and WIOA regulations.
Enable the Governor to determine if subrecipients and contractors have demonstrated substantial compliance with WIOA.
Enable the Governor to determine whether a local plan will be disapproved for failure to make acceptable progress in addressing deficiencies as required in WIOA section 108(e)(1); and
Enable the Governor to ensure compliance with the non-discrimination, disability and equal opportunity requirements of WIOA section 188, including the Assistive Technology Act of 1998 (29 U.S.C. 3003).¹
Require that prompt corrective action be taken if any substantial violation of standards is found.
Impose the sanctions provided in WIOA Secs. 184(b)-(c) of WIOA in the event of a subrecipients failure to take required corrective action.

The purpose of on-site monitoring is to:

Ensure the programs comply with appropriate policies and procedures, and operate within the parameters established by law, regulations, the State WIOA Plan, the Local WIOA Plan, Equal Opportunity and Nondiscrimination policies, and program guidelines, including overall compliance with:
- Workforce Innovation and Opportunity Act of 2014;
- Department of Labor Employment and Training Administration Advisories;
- DWD Policy Updates and Administrative Memos;
- DWD's WIOA Policy Guidance;
- Uniform Guidance 2 CFR Part 200 and 2 CFR Part 2900; and
- Nondiscrimination and Equal Opportunity provisions contained in Section 188 of WIOA and regulations 29 CFR § 38 applicable to employment and service delivery.
Assess the quality of services provided to program participants and employers, and where appropriate, make recommendations for improvement.
Evaluate the management and administration of WIOA-funded grants with the Department to determine if program operations are compliant and whether the WDB is on track to achieve grant goals and outcomes.
Identify technical assistance needs.
Identify system-wide issues requiring policy or program review and resolution.
Identify positive practices and share with others in the workforce development system.
Assess impacts of workforce programs for customers within the workforce development area.

Scope of Review

Several key items will be reviewed and considered. Items may include, but are not limited to, the following:

Governance:

Interview with the Executive Director and Board Members.
Review of Board Membership List and Conflict of Interest Forms.
Review of Board Committee structure.
Review of Board governance documents (i.e., By-Laws, Chief Elected Official Agreements, Memorandums of Understanding, etc.)

Program:

Interview with Board Staff.
Interview with the Service Provider Staff.
Review of Board policies relating to program operations.
Review of Board and Service Provider program monitoring plans, activities and documentation.
Review of selected files including: Adult Program, Dislocated Worker Program, and Youth Program participant files.
Review of participant files for compliance with Selective Service registration requirements.
Review of Job Center Certification requirements.

Fiscal:

Review of procurement standards to ensure compliance with Uniform Guidance and WIOA.
Review of internal controls, written policy and procedures, independent audit, and monitoring of sub-recipients.
Review of budget controls and fiscal reporting.
Review of cash management and personnel records.
Review of the indirect cost rate and/or cost allocation plan.
Review of vouchers to ensure costs are allowable and are being allocated properly.
Review of credit card statements.

Civil Rights Compliance & Equal Opportunity (CRC/EO):

Review the local EO Officer's duties and responsibilities for ensuring EO compliance of the Workforce Development Board (WDB) and their subcontractors.
Assess the extent to which the WDB and their subcontractors comply with EO notices and communications requirements.
Review WDBs subcontracts (includes Work Experience and/or OJT agreements) to determine if they contain the proper assurance language compliant with statutory requirements.
Assess the extent the WDB is providing universal access to individuals with limited English proficiency (LEP) and persons with disabilities. This includes demographic analysis, language assistance, and provision of auxiliary aides and services. This includes outreach to groups protected by civil rights statutes.
Review compliance with Section 504 and ADA.
Assess how the WDB data and information is collected, maintain, and safeguarded.
Review subcontractors EO on-site monitoring reports completed by the local EO Officer.
Review discrimination and other grievance/complaint policies, procedures, and complaint logs.
Review the WDB for voluntary compliance from subcontractors when violations of EO requirements are identified during monitoring reviews.
Site visits to review physical accessibility requirements and required information postings. Site visits may be conducted prior to the onsite monitoring, or during the onsite visit.

Schedule

The schedule of annual on-site monitoring and the monitoring guides that DWD-DET will use are available in the Resources box on this page.

Steps in the monitoring process

Notification: With the exception of unscheduled reviews, notification of pending reviews will be given at least ten (10) days before each review. DWD-DET is authorized to monitor any entity receiving WIOA funds, and these reviews may include entering sites or premises to examine program and fiscal records, question employees, and interview participants. It reserves the option to conduct unannounced or unscheduled reviews as appropriate.
Sampling: Random-sampling and data validation techniques will be used to draw the samples that will be used to review records. The review may include all (100%) of the record universe if the universe is small or problems are identified during the review. Requested records are not to be modified between the time of the records request and the arrival of the onsite monitoring team.
Interviews: DWD-DET on-site monitoring will include interviews which may include board members, board staff, service provider staff, and participants.
Desk Reviews: DWD-DET will review working papers and documents which will be retained at DWD after review.
Report: A report will be issued within 45 business days of the completion of the review. Copies of the report will be dispensed to the following: CEO/Director of the local Workforce Development Board; Workforce Development Board Chair; Local Chief Elected Official; and Coordinated Monitoring Team.
Corrective Action: The WDB shall provide a response to the monitoring report within 45 business days that addresses each finding and area of concern identified, and when required by the report, includes a corrective action plan. The corrective action plan, when required, shall include the action(s) the local WDB will take to correct the problem, the estimated date the problem will be resolved, and how the local WDB will be involved in addressing this issue. In the event it is not possible to resolve findings identified during monitoring, a request may be made to DWD-DET for Technical Assistance or referred to the DWD Secretary for alternate resolution.
Resolution or Completion: The review is completed or closed if corrective action is not required, or the corrective action plan has been accepted, or there are no further requirements.

Repeat items identified on the monitoring report

DWD-DET will identify Areas of Concern and Findings that appear in two or more consecutive monitoring reports for the WDA. These issues may result in one or more of the following:

Areas of Concern escalated to Findings.
Requirement of additional corrective actions.
Direct notification of specific issues provided to the Chief Elected Official for the WDA.
Implementation of more frequent monitoring of WDA activities by DWD-DET.
On-site training of local board staff and/or service provider staff.
Mandatory DWD-DET provided technical assistance.

In addition to the above, if the local area monitoring report includes findings that appear in three or more consecutive years for the same item, DWD-DET may enforce additional corrective measures, to include any or all of the following:

Development of a performance improvement plan.
Development of a modified local plan.
Requirement for the appointment and certification of a new local WDB.
Prohibiting the use of eligible providers and one-stop partners that have failed to take appropriate corrective actions.

Report Terminology

Terms utilized will be those identified in the United States Department of Labor's (USDOL) "Ten Steps to Developing an Effective State Monitoring System," and are defined below:

Positive Practice

Used to highlight positive aspects of programs that may be shared with other WDBs to help improve their programs.

Area of Concern

Administrative or management practices that do not represent instances of non-compliance, but could become compliance problems in the future, if not addressed.

Finding

The identification of a specific federal/state law, policy or procedure, or a local policy or procedure with which the WDB has failed to comply, that is serious enough to require corrective action.

Recommended Action

Suggested action steps to address Areas of Concern or Findings that, in DWD-DET's opinion, will improve the program or practice. The WDB is not required to adopt DWD-DET's specific recommendation(s).

Required Action

Step(s) that are necessary to address Findings or Areas of Concern. It is the Department of Workforce Development-Division of Employment and Training's (DWD-DET) expectation that the WDB will develop a corrective action plan, as appropriate.

¹20 CFR § 683.410