Services and Funding Work Services and Funding Work TeamTeam

One Stop System Building One Stop System Building Tool Kit:Tool Kit:

How to design it and how to How to design it and how to pay for itpay for it

About the Tool KitAbout the Tool Kit

Designed by State/Local Work TeamsDesigned by State/Local Work Teams Practical!Practical! First Chapters:First Chapters:

• Services and FundingServices and Funding• Memorandums of UnderstandingMemorandums of Understanding

More to Come!More to Come!• Look for One Stop System Building nextLook for One Stop System Building next• Others as needs are further identifiedOthers as needs are further identified

Services and Funding: Services and Funding: Some of the ChallengesSome of the Challenges

Partners must be involved at every stage of Partners must be involved at every stage of the process: share common visionthe process: share common vision

Creating Quality local systems: there really Creating Quality local systems: there really aren’t shortcuts to get therearen’t shortcuts to get there

Out of the Box ThinkingOut of the Box Thinking Achieving genuine integration of servicesAchieving genuine integration of services Overcoming real (and perceived) restrictions Overcoming real (and perceived) restrictions

on funding so that it can be mixed, on funding so that it can be mixed, leveraged, and shared for the benefit of the leveraged, and shared for the benefit of the local system.local system.

Lay out of Services and Lay out of Services and FundingFunding

IntroductionIntroduction Environment, Opportunities and Environment, Opportunities and

ChallengesChallenges Seven Strategies to help your local area Seven Strategies to help your local area

design the services for your local one design the services for your local one stop system,determine the cost of those stop system,determine the cost of those services, a process to allocate and share services, a process to allocate and share the cost of those services, and how to the cost of those services, and how to continually improve your local system.continually improve your local system.

About the Seven About the Seven StrategiesStrategies

Each strategy has useful tips and practical Each strategy has useful tips and practical suggestions, examples, sample matrixes and suggestions, examples, sample matrixes and other tools to use.other tools to use.

At the end of each strategy, there is a listing of At the end of each strategy, there is a listing of useful resources (suggestions only!)useful resources (suggestions only!)

All of those resources are on Web Sites:All of those resources are on Web Sites:• NYSDOL: www.wdsny.orgNYSDOL: www.wdsny.org• NYATEP: www.nyatep.orgNYATEP: www.nyatep.org

Meant to be used with NYSDOL Technical Meant to be used with NYSDOL Technical Advisory on Cost AllocationAdvisory on Cost Allocation

Some caveatsSome caveats

This is a living document, some things may This is a living document, some things may changechange

Will there be enough time to do all seven?Will there be enough time to do all seven? What if our area has already have gone What if our area has already have gone

through some of these strategies?through some of these strategies? These are suggestions, your area may decide These are suggestions, your area may decide

to take a different approach. Advice for to take a different approach. Advice for whatever you use: make sure it is consistent whatever you use: make sure it is consistent with the intent of the law, and document the with the intent of the law, and document the processprocess. .

The Seven StrategiesThe Seven Strategies

1. Determine Customer Needs (Business and Job Seeker)1. Determine Customer Needs (Business and Job Seeker)

2. Define the Local One Stop’s Vision, Mission, Values 2. Define the Local One Stop’s Vision, Mission, Values and Goalsand Goals

3. Develop a Plan for the Delivery of Services3. Develop a Plan for the Delivery of Services

4. Identify which of the partners provide each service4. Identify which of the partners provide each service

5. Determine the Cost of the System5. Determine the Cost of the System

6. Allocate the Cost Among the Partners6. Allocate the Cost Among the Partners

7. Continuously Improve you System7. Continuously Improve you System

Strategy 1: Determine Strategy 1: Determine Customer NeedsCustomer Needs

Collect data! Use what you already have, Collect data! Use what you already have, if possibleif possible

Kinds of data to be collected are identified Kinds of data to be collected are identified (description of customers, what are their (description of customers, what are their needs and wants, demographics, labor needs and wants, demographics, labor market, wage data, etc.)market, wage data, etc.)

How the data can be collected (surveys, How the data can be collected (surveys, focus groups, LMI, etc.)focus groups, LMI, etc.)

Resources to help you get the dataResources to help you get the data

Strategy 2: Vision, Strategy 2: Vision, Mission, GoalsMission, Goals

Use what has already been established by the Use what has already been established by the Local Workforce Investment Board and Chief Local Workforce Investment Board and Chief Local Elected Official (s)Local Elected Official (s)

Important to have partner and local WIB buy-Important to have partner and local WIB buy-in (best yet, that they are/were involved in the in (best yet, that they are/were involved in the development)development)

Use consensusUse consensus Align with vision in WIA and the NYS vision Align with vision in WIA and the NYS vision

contained in the Design Team Reportcontained in the Design Team Report Consider using an outside facilitatorConsider using an outside facilitator

Strategy 3: Develop the Strategy 3: Develop the Service PlanService Plan

11 Steps you can follow to develop your 11 Steps you can follow to develop your service plan, including mix of services based service plan, including mix of services based on customer needs/wants; what other on customer needs/wants; what other services beyond core does your area want services beyond core does your area want to provide; develop common definitions of to provide; develop common definitions of core services; what intensive services will be core services; what intensive services will be provided, etc.provided, etc.

Required Core and suggested core servicesRequired Core and suggested core services Your local area will probably want to add Your local area will probably want to add

services for business customersservices for business customers

Strategy 4: Develop List Strategy 4: Develop List of partners to provide of partners to provide each serviceeach service

7 steps for this strategy, including7 steps for this strategy, including• Develop a matrix of which partner currently Develop a matrix of which partner currently

provide which service (several samples provide which service (several samples included in the on-line resources)included in the on-line resources)

• Criteria for deciding which partner provides Criteria for deciding which partner provides which servicewhich service

• Decide which partner will deliver whatDecide which partner will deliver what• Eliminate duplication, identify gaps, fill Eliminate duplication, identify gaps, fill

gapsgaps• Reach consensus on partner responsibilitiesReach consensus on partner responsibilities

Strategies 5 and 6Strategies 5 and 6

Strategy 5: Strategy 5: Determine the Cost of the SystemDetermine the Cost of the System

Strategy 6:Strategy 6:Allocate Costs Among the PartnersAllocate Costs Among the Partners

Determine the Cost of the Determine the Cost of the SystemSystem

Build on the Service Plan Developed in Build on the Service Plan Developed in Previous Strategies -- Particularly Previous Strategies -- Particularly Strategies 3 and 4Strategies 3 and 4

Two Perspectives:Two Perspectives:• Local Workforce Investment Board MemberLocal Workforce Investment Board Member• One-Stop PartnerOne-Stop Partner

The Cost of the System Includes Both --The Cost of the System Includes Both --• Shared System Costs, andShared System Costs, and• Shared Service CostsShared Service Costs

Ten Categories of Ten Categories of Shared System CostsShared System Costs

• Technology for the SystemTechnology for the System• FacilitiesFacilities• Performance TrackingPerformance Tracking• Capacity BuildingCapacity Building• System Administration / Fiscal ManagementSystem Administration / Fiscal Management• PlanningPlanning• MarketingMarketing• OperationsOperations• Shared ServicesShared Services• OtherOther

Seven System Seven System ComponentsComponents

Seven Components:Seven Components:• Local Workforce Investment BoardLocal Workforce Investment Board• Youth CouncilYouth Council• Grant Recipient / Fiscal AgentGrant Recipient / Fiscal Agent• One-Stop Center(s)One-Stop Center(s)• One-Stop Operator(s)One-Stop Operator(s)• Affiliate Site(s)Affiliate Site(s)• Other (can be defined by local area)Other (can be defined by local area)

A Suggested ProcessA Suggested Process

For Each Category of Costs and System For Each Category of Costs and System Component:Component:

1 Estimate what will be needed to deliver the Estimate what will be needed to deliver the planned activitiesplanned activities

2 Determine what resources are on hand, who Determine what resources are on hand, who has them and what their value ishas them and what their value is

3 Determine what resources are not on hand Determine what resources are not on hand and what they will costand what they will cost

4 The sum of items 2 and 3 equals the total cost The sum of items 2 and 3 equals the total cost of the systemof the system

A Suggested ProcessA Suggested Process

5 Identify all potential resources and determine what Identify all potential resources and determine what direct costs should be charged to them. Subtract direct costs should be charged to them. Subtract from item 4from item 4

6 The balance (item 4 minus item 5) is the system cost The balance (item 4 minus item 5) is the system cost to be covered by the partnersto be covered by the partners

7 Determine what part of item 6 is assigned to year Determine what part of item 6 is assigned to year one of the five year planone of the five year plan

8 Assess affordability: if costs can be covered, Assess affordability: if costs can be covered, proceed with allocation among partners, if not, proceed with allocation among partners, if not, review and adjust service planreview and adjust service plan

9 Conduct reviews regularly and make adjustments as Conduct reviews regularly and make adjustments as appropriateappropriate

Some Tips on Determining Some Tips on Determining System CostsSystem Costs

Work with your local Fiscal Staff to adapt or Work with your local Fiscal Staff to adapt or develop a matrix and worksheets for identifying develop a matrix and worksheets for identifying system costssystem costs

Differentiate services and system costs for each Differentiate services and system costs for each year of the 5 year planyear of the 5 year plan

Determine all funding streams available to fund the Determine all funding streams available to fund the systemsystem

Determine the “employer of record” for any shared Determine the “employer of record” for any shared positions: this determines salary and benefit levelspositions: this determines salary and benefit levels

Determine local, State and federal guidelines for Determine local, State and federal guidelines for establishing the value of contributions to the one-establishing the value of contributions to the one-stop system stop system

Determining Shared Determining Shared Service CostsService Costs

There are many acceptable methods for There are many acceptable methods for determining the cost of each type of service.determining the cost of each type of service.

One method: partners jointly define --One method: partners jointly define --• The items involved in delivering the service that The items involved in delivering the service that

carry costscarry costs• The cost per participant for the serviceThe cost per participant for the service

Each partner estimates anticipated volume of Each partner estimates anticipated volume of service for next program year and estimated service for next program year and estimated costcost

Partners/LWIB estimate system wide volume Partners/LWIB estimate system wide volume and anticipated costs for next yearand anticipated costs for next year

Total Cost of the Total Cost of the One-Stop SystemOne-Stop System

The sum of the Shared System The sum of the Shared System Costs and the Shared Service Costs Costs and the Shared Service Costs equals the Total Cost of the System.equals the Total Cost of the System.

The Local Workforce Investment The Local Workforce Investment Board must approve the plan for Board must approve the plan for services and costs or recommend services and costs or recommend some other action.some other action.

Allocate Costs Among Allocate Costs Among PartnersPartners

Costs must be distributed proportionally Costs must be distributed proportionally across funding streams based on benefits across funding streams based on benefits received by that funding streamreceived by that funding stream

OMB Circulars A87, A21, and A122 provide OMB Circulars A87, A21, and A122 provide guidance on applicable cost principlesguidance on applicable cost principles

Partners may pay their share --Partners may pay their share --• in cash;in cash;• through contributions; orthrough contributions; or• through a combination of cash and through a combination of cash and

contributionscontributions

A 3 Step Process for A 3 Step Process for Allocating CostsAllocating Costs

1 Allocate shared costs using an appropriate Allocate shared costs using an appropriate allocation methodology as outlined by allocation methodology as outlined by NYSDOL or as allowable in OMB CircularsNYSDOL or as allowable in OMB Circulars

2 Assess affordability in relation to Assess affordability in relation to resources. Negotiate adjustments if resources. Negotiate adjustments if necessarynecessary

3 Conduct ongoing reviews of costs and how Conduct ongoing reviews of costs and how costs are allocated. Adjust allocation plan costs are allocated. Adjust allocation plan as appropriateas appropriate

Examples for Allocating Examples for Allocating Shared CostsShared Costs

Tip: Seek Stable Allocation BasesTip: Seek Stable Allocation Bases Technology: usageTechnology: usage Facilities: square footageFacilities: square footage Performance tracking: usagePerformance tracking: usage Capacity building: total staffCapacity building: total staff Fiscal Management: total staffFiscal Management: total staff Planning: participant countPlanning: participant count Marketing: usageMarketing: usage Operations: varied depending on itemOperations: varied depending on item

Strategy 7: Continuously Strategy 7: Continuously Improve your One Stop Improve your One Stop SystemSystem

13 steps to building a continuous 13 steps to building a continuous improvement culture among the partnersimprovement culture among the partners

Eight principles of quality improvementEight principles of quality improvement Measurement, Performance evaluation, Measurement, Performance evaluation,

Report Cards involving all partners is Report Cards involving all partners is criticalcritical

Resources: Lots of web sites and Resources: Lots of web sites and materials are available, including the materials are available, including the Enterprise and Simply Better ProductsEnterprise and Simply Better Products

Three Strategies we do Three Strategies we do not Recommendnot Recommend

Put a “One Stop” sign on your Center Put a “One Stop” sign on your Center and wait for other partners to show up and wait for other partners to show up with wheelbarrows full of $$$$with wheelbarrows full of $$$$

Open a “One Stop” Center (with one or Open a “One Stop” Center (with one or a couple of partners) and send a bill to a couple of partners) and send a bill to the other partners for their “fair share”the other partners for their “fair share”

Wait for the Partners’ Oversight Agency Wait for the Partners’ Oversight Agency (at the state or federal level) to direct (at the state or federal level) to direct them to pay their fair share them to pay their fair share