Response to DOL Monitoring Report dated March 9, 2009

Core Activity 1: Design and Governance ................................................................................................3
Finding # 1 - State Workforce Innovation Council is not functioning as a Local Workforce
Investment Board (Objective 1.2)........................................................................................................3
Finding # 2 - State Workforce Innovation Council (SWIC)/Balance of State (BOS) Workforce
Investment Board (WIB) Membership (Objective 1.2) .....................................................................9
Finding # 3 - Balance of State (BOS) WIB Youth Council Membership (Objective 1.2) .............10
Finding # 4 - Balance of State (BOS) WIB Youth Council General Functions (Objective 1.2)....14
Finding # 5 - The BOS local board does not competitively procure youth service providers
(Objective 1.2) ....................................................................................................................................14
Finding # 6 – The BOS Local Board does not Conduct Oversight of Youth Activities (Objective
1.2).......................................................................................................................................................15
Finding # 7 – Inadequate Promotion of 10 Youth Program Elements (Objective 1.2) .................17
Finding # 8 – Time Charging to Benefiting Programs (Objective 1.2; 1.3)....................................18
Core Activity 1: Design and Governance .............................................................................................19
Area of Concern # 1: Provision of Priority of Services (Objective 1.2).........................................19
Core Activity 2: Program and Grant Management Systems...............................................................20
Finding # 1 – Records Retention Policy (Objective 2.1) ..................................................................20
Finding # 2 – IDWD Has Not Monitored the Workforce Investment Board (WIB) for the
“Balance of the State” (Objective 2.1)...............................................................................................24
Finding # 3 – Organizational Conflict of Interest (Objective 2.1) ..................................................24
Finding # 4 – No Comprehensive Procurement Policy (Objective 2.7) ..........................................25
Finding # 5 – Prohibited RFP Evaluation Criteria (Objective 2.7) ................................................26
Finding # 6 – Insufficient Statement of Work (SOW) (Objective 2.7) ..........................................26
Finding # 7 – Appearance of Conflict of Interest (Object 2.7) ........................................................27
Finding # 8 – Payment for Services without a Valid Contract (Objective 2.7)..............................53
Finding # 9 – Initial Contract and Extension Not Competitively Procured (Objective 2.7).........66
Finding # 10 – Lack of Competitive Procurement (Objective 2.7) .................................................77
Finding # 11 – Failure to Ensure a Complete WIA Standardized Record Data (WIASRD) File
Submission for PY 2007 (Objective 2.9)............................................................................................77
Core Activity 2: Program and Grant Management Systems...............................................................78
Area of Concern # 1: Regional Operator (RO) Procurement Issues (Objective 2.7) ...................78
Area of Concern # 2: Annual Monitoring Schedule (Objective 2.1)..............................................78
Area of Concern # 3: Monitoring Guide Supplements (Objective 2.1) .........................................79
Area of Concern # 4: Disparate Service Provider Policies (Objective 2.1) ...................................79
Area of Concern # 5: Civil Rights: On-Site EEO On-Site Monitoring (Objective 2.3)...............79
Area of Concern # 6: Civil Rights Oversight (Objective 2.3).........................................................80
Area of Concern # 7: Inconsistency and Missing Data in the Electronic Capture or a Client’s
Application Information in Indiana’s TrackOne Case Management System (Objective 2.9) .....80
Area of Concern # 8: Sub-recipient Level Management Reports (Objective 2.9)........................81
Core Activity 3: Financial Management Systems.................................................................................81
Finding # 1 – MOUs Must Include a Resource Sharing Agreement (Objective 3-4) ....................81
Finding # 2 – Estimated Financial Reporting (Object 3-7) .............................................................82
Core Activity 4: Service/Product Delivery – Workforce Investment Act (WIA) ...............................83
Area of Concern # 1: Inadequate Outreach/Promotion of Most in Need Youth (Objective 4.1) 83
Area of Concern # 2: Inconsistent Participant File Format and Practices (Objective 4.2) .........84
Area of Concern # 3: Disparate Case File Systems (Objective 4.2) ...............................................85
Area of Concern # 4: Case File Documentation (Objective 4.2) ....................................................85
Area of Concern # 5: Provision of Labor Market Information to Dislocated Workers (Objective
4.3).......................................................................................................................................................86
Core Activity 4: Service/Product Delivery - Trade..............................................................................87
Finding # 1 – No WorkOne Office Monitoring ................................................................................87
Finding # 2 – Missing Labor Market Information (LMI) ...............................................................87
Finding # 3 – No O’Net Codes in the TAPR.....................................................................................88
Finding # 4 – Remedial Training and Remedial TRA .....................................................................89
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State of Indiana Comprehensive Review
Finding # 5 – Waiver Inconsistencies ................................................................................................89
Finding # 6 – Inconsistent Case Management ..................................................................................91
Finding # 7 – Incomplete Training Plans..........................................................................................92
Finding # 8 – No Judicial and Administrative Decision Rulings ....................................................93
Core Activity 4: Service/Product Delivery - Trade...............................................................................94
Area of Concern # 1: Waiver Expiration Dates for UI/TRA Purposes .........................................94
Area of Concern # 2: Duplicative Waiver Reviews and EB Work Testing...................................94
Area of Concern # 3: Large Case Management Workloads ..........................................................94
Area of Concern # 4: Exit Form .......................................................................................................95
Area of Concern # 5: Co-enrollment in Fort Wayne ......................................................................95
Area of Concern # 6: Insufficient Staff Training and Outdated Policy Manual ..........................95
Core Activity 4: Service/Product Delivery – Unemployment Insurance ...........................................96
Finding # 1 – National Directory of New Hires ................................................................................96
Finding # 2 – Data Validation............................................................................................................96
Finding # 3 – Required Reports.........................................................................................................97
Core Activity 4: Service/Product Delivery – Unemployment Insurance ...........................................97
Area of Concern # 1: Efficient and Effective Operations...............................................................97
Area of Concern # 2: UI Administration Delays .............................................................................98
Area of Concern # 3: Adjudication Procedural Delays ..................................................................98
Area of Concern # 4: Profiling Model..............................................................................................99
Area of Concern # 5: Benefit Accuracy Measurement Quality (BAM) ........................................99
Area of Concern # 6: EB Work Test for TRA Eligibility .............................................................100
Core Activity 4: Service/Product Delivery – Reemployment Service (WPRS) ...............................100
Finding # 1 – Completion of Similar Services (Ref: 42 U.S.C. 503(10)(A))..................................100
Finding # 2 – Referral of UI Claimants (Ref: 42U.S.C. 503(10)(B)).............................................100
Finding # 3 – UI Claimants Not Requiring Reemployment Services (Ref: 42 U.S.C. 503
(j)(1)(A))............................................................................................................................................101
Finding # 4 – Collection of Follow-up Information (Ref: 42 U.S.C. 503 (j)(1)(C))......................101
Finding # 5 – Accurate Reporting (Ref: UI Reporting Handbook 401, Page ii, Paragraph B)..102
Finding # 6 – REA Participants Reporting for Interview (Ref: UIPL 25-07 Paragraph 5, a and
b)........................................................................................................................................................102
Finding # 7 – REA Reports (Ref: UIPL 25-07, Paragraph d). ......................................................103
Finding # 8 – Administration of the Work Test (Ref: 20 CFR Part 652.209)..............................103
Finding # 9 – Implementation of the Auto-Coder System (Ref: Region 5 ETA Workforce
Development Letter No. 010-05, Attachment 4; and IDWD Proposal). .......................................104
Core 4 – Service/Product Delivery – Reemployment Service (WPRS) .............................................105
Area of Concern # 1: WPRS and REA Travel Exemptions (Ref: 42 U.S.C. 503 (10)(B))..........105
Area of Concern # 2: Profiling Model (Ref: 42 U.S.C. 503 (j)(1)(A)) ..........................................105
Area of Concern # 3: WPRS Participant Selection (Ref: 42 U.S.C. 503 (j)(1)(B)). ....................106
Area of Concern # 4: Conducting REAs (Ref: UIPL 25-07, Paragraph 5, a and b)...................106