Report 2015-508 All Recommendation Responses

Report 2015-508: Follow-Up—Federal Workforce Investment Grants: The Employment Development Department Established Procedures for Seeking Discretionary Grants, but Needs to Strengthen Them (Release Date: September 2015)

Recommendation #1 To: Employment Development Department

To ensure that its grant-seeking process is effective in considering grant opportunities related to workforce investment, EDD should update its grant identification and analysis procedures by December 31, 2015, to include the following:
- Identification of the appropriate level of management or staff to analyze and document the factors considered in pursuing or forgoing grant opportunities.
- Documentation of grant analyses, including factors considered in pursuing or forgoing grant opportunities.
- Documentation of decisions related to pursuing or forgoing grants.
- A method for ensuring that the process is consistently implemented.
- Training of appropriate management or staff about EDD's grant-seeking process.

Agency Response*

As stated in the six-month response, EDD has fulfilled one part of the recommendation. The EDD re-established the Workforce Services Branch Grants Unit to analyze and document the factors considered in pursuing or forgoing grant opportunities.

As of June 30, 2016, the workload associated with the transitional activities required to successfully implement the Federal Workforce Innovation and Opportunity Act are well underway. As such, EDD is now able to redirect its efforts to develop and implement: the documentation of grant analyses and decisions related to pursuing or forgoing grants, a method for ensuring that the process is consistently implemented, and the training of appropriate management and staff regarding EDD's grant-seeking process.

  • Response Type†: 1-Year
  • Estimated Completion Date: December 2016
  • Response Date: September 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

This recommendation has not been fully implemented. As stated in the 60-day response, EDD has fulfilled one part of the recommendation. The EDD re-established the Workforce Services Branch Grants Unit to analyze and document the factors considered in pursuing or forgoing grant opportunities.

The EDD has made the workload associated with the implementation of the Workforce Innovation and Opportunity Act (WIOA) one of its top priorities. Since July 1, 2015, EDD has been doing its part to implement WIOA in California in its dual role of WIOA Title I Administrator and WIOA Title III Service Provider. While full implementation of this new federal legislation (which brings nearly $500 million in resources to our State) will take several years, this first transition year (July 1, 2015 to June 30, 2016) is especially critical to ensuring that California complies with all of the new WIOA-related requirements. The result is that the grant-seeking procedural updates referenced in the report are not expected to be updated any earlier than June 30, 2016. In the interim, EDD Workforce Services Branch staff continue to carry out its grant-seeking work using the existing business processes without any reduction in efficiency or quality.

Once the workload associated with implementing WIOA in the transition year (July 1, 2015 to June 30, 2016) is completed, then EDD will develop grant-seeking internal processes and procedures, including coordinating efforts and roles and responsibilities for grant-seeking activities.

  • Response Type†: 6-Month
  • Estimated Completion Date: Fall 2016
  • Response Date: March 2016

California State Auditor's Assessment of Status: No Action Taken


Agency Response*

This recommendation has not been fully implemented. The EDD will evaluate its grant identification and analysis procedures to address the following:

- The responsibility of analysis and documentation of factors considered in pursuing grant opportunities has been assigned to the Staff Services Manager I and support staff in the newly re-established EDD/Workforce Services Branch Grants Unit. It has been determined that this assignment level is appropriate for initial analysis. As EDD indicated in the draft report, the leadership and management remain dynamic and responsive; therefore, guidance and procedures will change over time to reflect how grant opportunities are managed.

- The EDD is modifying the grant analysis process, including the executive summary component. In addition, EDD will evaluate the elements required to document grant analyses (e.g., the basis for pursuing or forgoing grants). Other decision-related elements will also be evaluated and incorporated to ensure documentation is returned to the Grants Unit for recordation in the tracking tool.

- As noted in the second item, documentation of decisions related to pursuing or forgoing grants is being addressed. The EDD is encouraged, as stated in the fourth paragraph of our response letter dated September 22, 2015, that the CSA's audit found "the decisions that were made by EDD all had merit (and) the decisions made by program experts on whether or not to seek grant opportunities were appropriate."

- The EDD is confident that the method described in the second item will enhance and support the procedures and ensure the process is consistently implemented.

- The EDD's Workforce Services Branch will provide training to appropriate management and staff.

  • Response Type†: 60-Day
  • Estimated Completion Date: Early 2016
  • Response Date: November 2015

California State Auditor's Assessment of Status: Partially Implemented


Recommendation #2 To: Employment Development Department

To ensure that the State maximizes federal funding opportunities related to workforce investment, EDD and the state board should formalize their collaborative grant-seeking procedures by December 31, 2015, to clearly define their respective roles and responsibilities in the grant-seeking process.

Agency Response*

As of June 30, 2016, the workload associated with the transitional activities required to successfully implement the Federal Workforce Innovation and Opportunity Act is well underway. As such, EDD and the State Board plan to collaborate to formalize the grant-seeking procedures. The procedures will clearly define their respective roles and responsibilities in the grant-seeking process.

  • Response Type†: 1-Year
  • Estimated Completion Date: December 2016
  • Response Date: September 2016

California State Auditor's Assessment of Status: Pending


Agency Response*

This recommendation has not been fully implemented. Once the workload associated with implementing WIOA in the transition year (July 1, 2015 to June 30, 2016) is completed, EDD will continue to work with the State Board to develop grant-seeking internal processes and procedures, including coordinating efforts and roles and responsibilities for grant-seeking activities.

  • Response Type†: 6-Month
  • Estimated Completion Date: Fall 2016
  • Response Date: March 2016

California State Auditor's Assessment of Status: No Action Taken


Agency Response*

This recommendation has not been fully implemented. The EDD and the State Board are in development of grant-seeking internal processes and procedures, including coordinating efforts and roles and responsibilities for grant-seeking activities.

  • Response Type†: 60-Day
  • Estimated Completion Date: Early 2016
  • Response Date: November 2015

California State Auditor's Assessment of Status: Pending


Recommendation #3 To: Workforce Investment Board, California

To ensure that the state board assesses the merits of pursing federal funding for workforce investment programs in California, it should establish procedures by December 31, 2015, that include, at a minimum, the following:
- The methods it will use to identify federal grant opportunities.
- The factors it will consider in its decisions to pursue or forgo applying for these grants.
- The process by which it will document its analyses of grants and its final decisions to either pursue or forgo grant opportunities.
- A method for ensuring that the process is consistently implemented.

Agency Response*

The State Board has established internal procedures for the identification, review and analysis of federal funding opportunities, incorporating the recommendations of the Government Finance Officers Association that the State Auditor provided. However, the State Board and EDD are continuing to finalize the internal processes for how this new procedure will be used by the State Board and EDD as part of our coordinated roles and responsibilities related to grant-seeking. The full implementation of the internal processes have been delayed due to WIOA implementation activities as noted in EDD's 1 year response.

  • Response Type†: 1-Year
  • Estimated Completion Date: December 2016
  • Response Date: October 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

The State Board has established internal procedures for the identification, review and analysis of federal funding opportunities, incorporating the recommendations of the Government Finance Officers Association that the State Auditor provided. However, the State Board and EDD are continuing to finalize the internal processes for how this new procedure will be used by the State Board and EDD as part of our coordinated roles and responsibilities related to grant-seeking. the full implementation of the internal processes have been delayed due to WIOA implementation activities as noted in EDD's 6-month response.

  • Response Type†: 6-Month
  • Estimated Completion Date: Fall 2016
  • Response Date: March 2016

California State Auditor's Assessment of Status: Partially Implemented


Agency Response*

The State Board has established internal procedures for the identification, review and analysis of federal funding opportunities, incorporating the recommendations of the Government Finance Officers Association that the State Auditor provided. However, the State Board and EDD are continuing to finalize the internal processes for how this new procedure will be used by the State Board and EDD as part of our coordinated roles and responsibilities related to grant-seeking.

  • Response Type†: 60-Day
  • Estimated Completion Date: January 2016
  • Response Date: November 2015

California State Auditor's Assessment of Status: Partially Implemented


Recommendation #4 To: Workforce Investment Board, California

To ensure that the State maximizes federal funding opportunities related to workforce investment, EDD and the state board should formalize their collaborative grant-seeking procedures by December 31, 2015, to clearly define their respective roles and responsibilities in the grant-seeking process.

Agency Response*

The State Board and EDD continue to collaborate in the development of internal processes, procedures, and coordinated roles and responsibilities for grant-seeking activities. The development of the internal processes and roles and responsibilities continues to be delayed due to WIOA implementation activities. The State Board and EDD are collaborating to formalize the grant-seeking procedures. The procedures will clearly define their respective roles and responsibilities in the grant-seeking process. Both EDD and the State Board will continue to follow their independent grant seeking processes and share analysis of grant opportunities until the collaborative process is finalized.

  • Response Type†: 1-Year
  • Estimated Completion Date: December 2016
  • Response Date: October 2016

California State Auditor's Assessment of Status: Pending


Agency Response*

The State Board and EDD continue to collaborate in the development of internal processes, procedures, and coordinated roles and responsibilities for grant-seeking activities. The development of the internal processes and roles and responsibilities has been delayed due to WIOA implementation activities and turnover of key staff in the area of grant seeking. On March 16, 2016 the State Board and EDD staff met to revise and merge the grant seeking activities of both organizations. both EDD and CWDB will continue to follow their independent grant seeking processes until the collaborative process is finalized.

  • Response Type†: 6-Month
  • Estimated Completion Date: Fall 2016
  • Response Date: March 2016

California State Auditor's Assessment of Status: No Action Taken


Agency Response*

The State Board and EDD are in development of internal processes, procedures, and coordinated roles and responsibilities for grant-seeking activities.

  • Response Type†: 60-Day
  • Estimated Completion Date: January 2016
  • Response Date: November 2015

California State Auditor's Assessment of Status: Pending


All Recommendations in 2015-508

Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.


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