Narrative: a. 2. B.

Governor set-aside funds

Statewide activities funds are being used and prioritized to carry out the following required activities: 

• Operating a fiscal management and accountability system:  The DEDC has established, in accordance with the Workforce Innovation and Opportunity Act (WIOA) Section 116(i), fiscal control and fund accounting procedures that are necessary to ensure the proper disbursement of, and accounting for, funds paid to the State through allotments made for adult, dislocated worker, and youth programs to carry out workforce investment activities. 
• Dissemination of the State’s list of Eligible Training Providers:  The WIOA Section 122(c) specifies that states must establish an application procedure for training providers and programs to maintain their eligibility and the eligibility of their programs.  States in partnership with the local boards, the One-Stop system, and its partners play a leadership role in ensuring the success of the eligible training provider system.  The module of the Eligible Training Providers List (ETPL), that is part of the PRIS, serves as an important tool for participants seeking training to identify appropriate providers and relevant information such as cost and program outcomes.  Using the PRIS, career planners can assist participants in identifying training providers offering programs in high-demand industries that result in positive outcomes and recognized credentials.  This system will provide up-to-date information about in-demand occupations, training programs that address the skill needs of employers, and information about available jobs and occupations. 
• Technical Assistance to local areas:  The State will publish and disseminate performance outcomes on a quarterly basis for all local areas.  These reports allow the State and local areas to monitor performance outcomes in order to establish trends and identify measures requiring corrective action.  The WIOA program staff will monitor performance, identify issues, and provide technical assistance, as needed.

Programmatic reviews ensure that workforce development system achieves quality program outcomes that meet the requirements and objectives of the WIOA and federal and state regulations.  Puerto Rico will continue to evaluate the effectiveness of local programs by conducting comprehensive programmatic reviews and oversight activities for the entire workforce development system.  The WIOA programmatic reviews will provide guidance and direction to local programs in order to assist in providing quality workforce development services to our customers and provide a framework for continuous improvement efforts under the WIOA.  Program reviews also offer the opportunity for disseminating information about effective program practices to the entire workforce development system.  State staff will continue to conduct programmatic reviews to ensure effective grant monitoring and oversight utilizing a comprehensive set of monitoring and oversight activities, including on-site monitoring, quarterly desk reviews, and ongoing technical assistance and training.

Use of the DEDC Monitoring Guides by WIOA State Coordinators is required.  In addition, Monitoring Guides are living documents that are updated regularly to reflect changes in law, regulation, and/or policy, as well as to include any improvements which will make the guides easier and more effective to use.  

• Evaluations:  The State will conduct evaluations and research projects on activities under the WIOA core programs to establish and promote methods for improving such activities to achieve high-level performance within, and high-level outcomes from, the statewide workforce system.  Such projects will be coordinated with, and designed in conjunction with, state and local boards and with State agencies responsible for the administration of all respective core programs.  Evaluations will include analysis of customer feedback, outcome and process measures for the workforce investment system, as required.

In addition to funding the above-referenced WIOA activities, statewide activities funds are being used for those activities deemed most essential to the basic functions of the workforce investment system, including oversight of the local workforce investment boards and the WIOA programs.  Statewide funds are being used to carry out the following allowable activities:

• State Level Administration includes the following functions:
  • Staff costs for program oversight and monitoring.
  • Participant Record Information System (PRIS)and related staff costs:  The state uses a single integrated data collection system, known as the Participant Record Information System.  This ensures that all local providers collect, report, and maintain the same data elements.  In the next months, DEDC is going to start a second phase aimed to achieve the integration and/or interface of some required partner’s data systems.
• Special Projects Funding:  Funds have been set aside for yet-to-be-determined special projects generated by DEDC.  Special projects could include, but are not limited to, workforce and economic information and data needs, support for statewide planning activities around the WIOA, support for regional and local activities, surveys, evaluations.  Funds may also be utilized to provide additional support for local boards operations, commensurate with the level of any remaining set aside funds.
• Capacity Building and Professional Development Funds to our workforce development system:  To most efficiently and effectively utilize these funds to benefit the entire Puerto Rico workforce development system, funds are going to be allocated to support activities in addressing the goals of local strategic plans and the needs of local employers for a skilled workforce.  Funds may be utilized for, but not limited to, supporting state and local partnerships to build equitable pathways to high-wage careers, enhancing system capacity to provide opportunities for individuals with barriers to employment to enter  in-demand industry sectors or occupations and nontraditional occupations, and developing and improving local program performance and goals through assisting ongoing system development and proficiency, including professional development and technical assistance.

State Unit for Dislocated Workers and Employers – Rapid Response Services

The Department of Economic Development and Commerce facilitates the statewide Rapid Response services and serves as the recipient of plant closings/mass layoff notices required under the Worker Adjustment and Retraining Notification Act.

Rapid Response is a key component to Puerto Rico’s strategy to create a unified local approach while working with and providing a comprehensive array of services to employers.  As a business service, Rapid Response will promote a full range of services available to help companies in all stages of the economic cycle.  Early intervention facilitates a relatively quick and unencumbered transition to employment or training, following either a permanent closure or mass layoff, or a natural (or other) disaster resulting in mass job dislocation.

The State Unit for Dislocated Workers and Employers of the Workforce Development Program of DEDC is in charge of carrying out Rapid Response services and coordinates the Trade Adjustment Assistance Program (TAA).  The State Unit has Rapid Response and TAA coordinators who have the responsibility to coordinate services to dislocated workers affected by mass layoff and plant closings. The Rapid Response process involves a unification of state agencies and local service providers, together with the private sector and organized labor.  The goal of all concerned parties is to provide dislocated workers with an array of support, resources, and technical assistance to effectively assist in the transition to reemployment. The RR and TAA State Coordinators participate in cross training of crucial re-employment and assistance programs and services most relevant to each local area or region.  Subsequently, the RR and TAA State Coordinators acts as the link between the Local Workforce Development Boards (LWDBs), Wagner Peyser and Unemployment Insurance of the PRDOLHR, and applicable federal, state, and private resources to ensure all re-employment and supportive service information is readily available to assist employers and workers experiencing a mass layoff or plant closing. 

The state has been developing a comprehensive rapid response and TAA procedures, that will be continuously reviewed for improvement, to serve impacted employers and workers using the Rapid Response, and TAA Programs.  In order to provide thorough and complete delivery, the procedures will provide a special emphasis to business engagement and layoff aversion services. 

The Rapid Response team begins the process by interacting with companies that have, or plan to, lay off workers.  Information regarding the WIOA Dislocated Worker and TAA Programs are provided to the company, and if applicable, union officials at this early stage.  Worker meetings are planned at this point to discuss the available workforce programs in more detail.

In addition to acting as a facilitator and resource of re-employment resources, the TAA and RR State Coordinators thoroughly documents dislocation events, allowing for trend analysis and proactive strategy development, organizes necessary communications and aligns relevant services to support affected workers. The aforementioned strategies are all part of a demand-driven system and a key component of a comprehensive layoff aversion strategy.

Compliance issue

Request:  Puerto Rico must clearly describe steps to ensure fiscal integrity processes are implemented with Statewide funds.  Puerto Rico must describe RR layoff aversion strategies.

To ensure the fiscal integrity of the Statewide fund, the DEDC developed cost allocation procedures. These procedures are currently under consideration by the State Board. For these procedures, a private consulting firm conducted interviews with DEDC financial staff and together developed procedures for proper allocation of program costs. In addition, the following procedures are performed to ensure the fiscal integrity of the program:

• A single audit of the use of the funds is carried out once a year.
• Financial monitoring of the activities carried out with funds from the state reserve is carried out once a year.
• Contracts that exceed $10,000 must be referred to the Governor's office. If they exceed $50,000, they must also be sent to the OGP.
• The State Board is in the process of establishing public policy for the evaluation and approval of any delegation of funds from the state reserve.
• The State Board, through its Executive and Planning Committee, evaluates transactions of State Reserve funds that exceed $500,000. In addition, it requires a report of all projects developed with Reserve funds regardless of the amount of funds used.
• The WDP has a Planning Guide that is reviewed each program year to bring it in line with the public policies issued by DOLETA. It contains all instructions on the use of funds. This guide is also used for permitted state reserve activities.
• For the development of the activities required by the state, the DEDC develops competitive processes by publishing RFPs for the hiring of any professional service. There is a permanent Auction Committee, which is staffed by additional DEDC personnel who specialize in the service to be contracted. The DEDC follows the protocols and policies of the state OGP to develop any RFP process.
• All contracts are regulated by the 2 CFR ensuring that obligations and funds are not used for: food and beverage, branding and marketing projects, including website development, indirect administrative costs, politically related activities, entertainment, fines and penalties, donations, fundraising activities, individual memberships, and subscriptions.
• For incumbent workers training, the employers must sign certifications and warranties and complete the contract process. Funds will be reimbursed as expenses are incurred. So the State Board, through the Fiscal Agent, will ensure that companies submit performance reports and expense receipts before issuing reimbursements.  The performance reports will include the amount of work savings, the estimated amount of annual wage savings, and the specific project measures and results.  Employers benefiting from the fund must retain receipts for at least three years beyond the end of the grant period.
• The WDP will agree with employers receiving the fund that they may be subject to local, state, or federal monitoring.
• The DEDC also adheres to state laws regarding the use of public funds.  And all contracts are subject to review by the Puerto Rico Comptroller's Office.

In order to prevent risk for companies and employees, state strategies for layoff aversion are oriented in four dimensions:

Partnership with economic development entities: The Department of Economic Development and Commerce is the umbrella for government economic development agencies. Therefore, part of the strategies for the prevention of layoffs is the orientation on incentives in Puerto Rico that promote job creation. Some of these examples are Law 120-2014, Law 135-2014, Incentive for Micro-entrepreneurs, among others. Therefore, part of our strategy is that companies can have savings in their payrolls through state incentives under the DEDC. These are state resources but apply to WIOA participants.

Incumbent Workers training: Employee training reduces the risk of dislocation of the incumbent workers. Lifelong education is the basis for companies to be competitive in a global and changing economy.

Research and Development: Permissible activities under Rapid Response allow local areas to contract consulting services and labor market research. These actions will encourage data-based decision making and expert research.

Improving technology transfer: The DEDC is developing a case management program that will allow for a better monitoring picture of WIOA participants (employees and employers). This system will be able to keep a better record of the activities that occur in companies.

The DEDC contracted an external resource to develop policies and procedures for establishing a Business Service Unit within the State Unit for Dislocated Workers and Employers. The State Board has a draft policy under consideration: "PRDDEC-WIOA-RR-04-20". This policy details the procedures for the implementation of Rapid Response activities in Puerto Rico