(Wilkes-Barre, PA, March 22, 2010) – The Luzerne Schuylkill Workforce Investment Board, Inc. (L/S WIB) is releasing the following timeline regarding steps that have been taken, and are being taken, to ensure compliance with state and federal Department of Labor guidelines. In light of recent events and published reports regarding the operation of the workforce delivery system in Luzerne and Schuylkill counties, L/S WIB is focused on the continuous improvement process.
In accordance with and established by the Workforce Investment Act of 1998, L/S WIB is one of 22 Workforce Investment Boards in Pennsylvania charged with the overarching responsibility and accountability of local workforce delivery systems GRANT funding. L/S WIB, a bi-county, private-sector majority, commissioner-appointed board, is directly reportable to the local elected officials in both Luzerne and Schuylkill counties.
In May 2009, the Commonwealth of Pennsylvania Office of the Budget, Labor, Education, and Community Services (LECS) Comptroller’s Office issued a performance audit of the Luzerne County Workforce Investment Development Agency (LCWIDA), then serving in the capacity of fiscal agent for the GRANT funds for both Luzerne and Schuylkill counties. The performance audit detailed 13 findings and requested a corrective action plan be submitted within 60 days. The report covered the period from June 1, 2007, through May 15, 2008.
In December 2009, state and federal audits uncovered that the corrective measures were not fully implemented, as reported by LCWIDA in July 2009. If left uncorrected, these deficiencies could jeopardize the continuance of funding for these programs.
Until November 2009, the fiscal signatory authority for both counties’ programs was LCWIDA, which would receive the federal and state funding and distribute it for its own services, as well as to The ReDCo Group (a private non-profit organization in Schuylkill County). In November 2009, Luzerne County Commissioners, as primary recipient of the grant funds for both counties, voted to transition the fiscal signatory authority and receipt of funds to L/S WIB. The Luzerne County Commissioners remain the fiscal agent, as the local governing body, and are ultimately responsible for all grant funds and its use.
L/S WIB is taking measures to correct deficiencies in hopes of ensuring Luzerne and Schuylkill counties continue to receive federal and state employment funding, currently $10 million, that helps train and find work for thousands of residents.
Measures taken by L/S WIB include:
- A new L/S WIB Executive Director, Lucyann Vierling, was hired in July 2009. Vierling has more than two decades of regional workforce development experience
- A new private sector board chairman, Martha Herron, was named. The board is comprised of community and business leaders who are taking active roles in helping guide the organization. Members of the board come from all sectors of the community, including education, economic development, health care, finance, and private industry.
- Fiscal responsibility for the workforce programs has been transferred from the LCWIDA to the L/S WIB to help bring the organization into compliance with state and federal requirements and guidelines.
- A workforce consultant, Service Access & Management, Inc., (SAM), was hired to provide immediate action to correct deficiencies uncovered in the May 2009 audit. SAM is working with L/S WIB to establish a fiscal agent transition plan. SAM, founded in 1987, has valued experience in emergency services, case management, and fiscal and administrative services.
- In January 2010, L/S WIB announced that it would seek competitive proposals for all programs and services that are being provided by LCWIDA and The ReDCo Group, over those mandated by federal legislation. Pennsylvania proposals, as well as other from around the country, were benchmarked for best practices and processes before release, ensuring the utmost in quality and effectiveness to best serve our residents. The “Request For Proposals” for three programs of service: Employment, Advancement, and Retention Network (EARN); Workforce Investment Act (WIA) Title I Services for Adult and Dislocated Workers; and Workforce Investment Act (WIA) Title I Services for Youth (including in-school youth, out-of-school youth, and summer youth). Those three programs of service are available in both Luzerne and Schuylkill counties – for a total of six available contracts. Interested parties may bid on each of those service areas for one or both counties. That is, interested parties may bid on between one and six RFPs. Proposals will be initially reviewed by Corporation for a Skilled Workforce, a nationally recognized workforce consultant, ensuring quality and budgetary effectiveness. L/S WIB fully expects LCWIDA and The ReDCo Group to respond to the RFPs as qualified bidders.
Due to pending and ongoing audits by state and federal agencies, L/S WIB cannot comment further on the current situation beyond providing this statement of facts and the following timeline, which may help the public understand the recent changes taking place in the Luzerne and Schuylkill county workforce programs.
TIMELINE
May 12, 2009
State performance audit of LCWIDA details 13 deficiencies
LECS Report
The Commonwealth of Pennsylvania Office of the Budget, Labor, Education, and Community Services (LECS) Comptroller’s Office issued a performance audit of the Luzerne County Workforce Investment Development Agency (LCWIDA) detailing 13 findings and requesting a corrective action plan be submitted within 60 days. The report covered the period from June 1, 2007, through May 15, 2008.
At that time, LCWIDA was the fiscal agent for programs in both Luzerne and Schuylkill counties.
July 2009
Lucyann Vierling named new L/S WIB executive director
Martha Herron named L/S WIB board chairman
November 16, 2009
Change of fiscal signatory process begins
In order to address the findings in the Comptroller’s audit, the Luzerne County Commissioners – specifically Commissioners’ Chairwoman Maryanne C. Petrilla, who is the designated Lead Elected Official (LEO) for both Luzerne and Schuylkill counties regarding the oversight of L/S WIB – formally and legally changed the Fiscal Signatory Authority for the entire workforce funds of $10 million. Previously, the L/S WIB was responsible only for its own budget. The transition was approved on Nov. 16, 2009, and formal documents were filed with the PA Department of Labor on Dec. 10, 2009.
November 18, 2009
Commissioners agree to competitively procure all programs and services for 2010-2011
A meeting was held with the chairwomen of the Luzerne and Schuylkill County Commissioners. Both agreed that all programs and services should be competitively procured – through Requests for Proposals (RFPs) – for program year 2010-2011 rather than directly passed to Workforce Investment Act Title I contractors, LCWIDA, and The ReDCo Group.
In the past, funding directly passed to LCWIDA and The ReDCo Group.
Under the new arrangement, which was to have been initiated by the passing of the Workforce Investment Act of 1998, L/S WIB will have direct involvement in planning for programs and services in a proactive manner and provide the decision-making necessary to transform the local workforce system and ensure accountability of all funds expended.
December 7-11, 2009
Federal ETA review takes place
The U.S. Department of Labor Employment and Training Administration (ETA) conducted a comprehensive review of the Commonwealth of Pennsylvania and Luzerne/Schuylkill Workforce Investment Areas to determine compliance with federal regulation and procedures. ETA’s draft findings were published Feb. 9, 2010, and received by L/S WIB on Feb. 17, 2010.
December 15-18, 2009
PA CareerLink Oversight Coordination Services (CLOCS) team reviews local offices
A state team visited the local CareerLink offices from Dec. 15-18, 2009, to review and analyze the
L/S WIB Compliance and Oversight System, in accordance with Section 117 of the Workforce Investment Act of 1998.
January 14, 2010
L/S WIB Board Meeting
At the full board meeting, L/S WIB shared information about recent events with the board and requests assistance with the Fiscal Agent transition and the RFP process.
January 21, 2010
CLOCS Report received
L/S WIB received written results of the local workforce area compliance and oversight review from the visit by PA CareerLink Oversight Coordination Services (CLOCS) of Dec. 15 through 18, 2009.
January 25, 2010
CLOCS Review received
L/S WIB received the written results of a CLOCS review regarding information surrounding the Summer 2009 federal Workforce Investment Act (WIA) American Recovery and Reinvestment Act of 2009 (ARRA) funding for paid “work experience.”
February 3-5, 2010
CLOCS returns for review
CLOCS returned with Office of the Budget – Comptrollers Operations and completed a full review of records of participants enrolled in the ARRA Summer Youth Program, Dislocated Worker Program, and Adult activities, with an emphasis on work experience and on-the-job training (OJT) programs.
February 9, 2010
L/S WIB Chairman and Staff held a conference call with the three Schuylkill County Commissioners to discuss the seriousness of the CLOCS exit interview on Feb. 4, 2010. L/S WIB Chairman and Staff met with Luzerne County Commissioners Maryanne Petrilla, Steve Urban, and Tom Cooney to discuss the CLOCS exit interview.
February 17, 2010
Federal ETA Report arrives at L/S WIB office
February 18, 2010
PA Department of Labor sends letter
Director of Bureau of Workforce Development Partnership, PA Department of Labor, writes to Luzerne County Commissioner Maryanne Petrilla advising her that the 13 deficiencies found in the May 2009 LECS Audit Report remain unresolved. Director gave the L/S WIB and Petrilla 30 days to respond with a plan of action.
February 19, 2010
CLOCS exit interview reviewed
L/S WIB Chairman and Staff met with Schuylkill County Commissioners Mantura Gallagher, Frank Staudenmeier, and Francis McAndrew regarding the CLOCS exit interview of Feb. 4, 2010, and the letter to Commissioner Petrilla dated Feb. 18, 2010.
L/S WIB Chairman and Staff held a conference call with Maryanne Petrilla and Maryann Kowalonek, CPA, chief financial officer (CFO) of Service Access & Management, Inc. (SAM), a not-for-profit human services company. SAM, formed in 1987, has valued experience for emergency services, case management, and fiscal and administrative services, all of which the L/S WIB workforce area needs.
February 22, 2010
Meeting with Service Access & Management, Inc., officials
L/S WIB Chairman and Staff met with vice president/COO and CFO of SAM to discuss viable options for an immediate action plan to address deficiencies.
February 23, 2010
Emergency L/S WIB Executive Committee meeting
L/S WIB Chairman called an emergency meeting of L/S WIB Executive Committee to discuss the necessary and immediate action plan with SAM. Of the nine committee members, eight participated in a conference call. A motion was made to hire SAM from March 1 through June 30, 2010. The motion passed 8-0-1; one Executive Committee member abstained from voting because he sits on a board with a member of SAM.
March 4, 2010
L/S WIB Executive Committee ratifies vote to hire SAM
L/S WIB Executive Committee ratified the emergency meeting motion to hire SAM. The ratification was unanimous with one exception – the same Executive Committee member again abstained from voting.
March 8, 2010
Requests For Proposals sought
L/S WIB begins seeking RFPs to provide service in three areas, and in two counties. The three areas are: Employment, Advancement, and Retention Network (EARN); Workforce Investment Act (WIA) Title I Services for Adult and Dislocated Workers; and Workforce Investment Act Title I Services for Youth (including in-school youth, out-of-school youth, and summer youth). Those three programs of service are available in both Luzerne, and Schuylkill counties – for a total of six available contracts. Interested parties may bid on each of those service areas for one or both counties. That is, interested parties may bid on between one and six RFPs.
March 11, 2010
L/S WIB Board unanimously ratifies a motion to hire SAM to assist in the fiscal signatory transition from LCWIDA to L/S WIB.
