The URL can be used to link to this page

Home My WebLink AboutResolution - 3992 - Private Industry Council Disallowed Cost Plan - 10_22_1992w�ti1 (ko �r�0 GA RAF �tii I 3c(q� �� 0 ,�) �& (� (V �T obobsourcp bcCftoarca,ace In uscry Cowd Inc, 1218 14th Street Lubbock, TX 79401 (806)765-5038 FAX(806)765-6944 Barry Ballinger Chairman Don McCullough Executive Director Chief Elected Ofci-h Mayor David R Langston City of Lubbock Judge Don McBeath Lubbock County Judge Giles Dalby Garza County Job Training and Employment Assistance September 8, 1992 To: Mayor David R. Langston Judge Don McBeath Judge Giles Dalby 1. A recent audit performed by the State Auditor's Office determined that the Disallowed Costs Plans on file at the Work Force Development Division, Texas Department of Commerce, for the Service Delivery Areas that provide the Job Training Partnership Act (JTPA) services throughout the State of Texas are not adequate nor are they feasible. As a result of this audit, the Texas Department of Commerce established a study group to determine the minimum criteria for the disallowed costs plans. 2. This study group found that only a few cash repayments due to disallowed costs had ever occurred in Texas with the largest amount being a $4,000. repayment from a Private Industry Council for exceeding the statutory 15% cost limitation in the cost category of Administration. 3. Based on their findings, the study group agreed to establish the following criteria as the minimum for an acceptable disallowed cost repayment plan. 1. Minimum of $3,000 in cash immediately available 2. Source must be from non-federal funds 3. Signatures of the entities which will contribute. The Texas Department of Commerce wants it understood that they will work cooperatively with each entity and will make every attempt to resolve any questioned costs that are subject to a cash repayment. The cash repayment to resolve disallowed costs would be absolutely the last resort and will be pursued only if all other legitimate means available have failed to resolve the issue. 4. JobSource+ serves the City of Lubbock, Lubbock County, and Garza County and manages the Job Training Partnership Act funds for this area amounting to approximately $3 million annually. JobSource+ was Jpbsp rce�Gana Co, Priry Cound Inc, 1218 14th Street Lubbock, TX 79401 (806)765-5038 FAX(806)765-6944 Barry Ballinger Chairman Don McCullough Executive Director Chief Elected Ofcials Mayor David R. Langston City of Lubbock Judge Don McBeath Lubbock County Judge Giles Dalby Garza County Job Training and Employment Assistance incorporated in September 1987 and began operations in July 1988 as the administrative entity in order to receive the JTPA funds. Since the inception of JobSounce+, there has been no disallowed costs established by the Texas Department of Commerce. As a result of the benefits to thousands of citizens in this SDA, this guarantee, although it should never be used, is a very small potential investment from these entities. 5. Request your assistance in obtaining the appropriate authority from the City Council, for the City of Lubbock, and the Commissioner's Courts for the two counties so that you may each provide the guarantees listed in our revised Disallowed Cost Plan at attachment 1. Sincerely, Don McCullough Executive Director DM;cv Attachment: Disallowed Costs Plan CP qboc Garza Co. Private In astry Council Inc. 1218 14th street October 1, 1992 Lubbock, TX 79401 (806)765-5038 FAX(806)765-6944 Barry Ballinger Chairman Don McCullough Executive Director Chi f Elecued Offlitiah Mayor David R. Langston City of Lubbock Judge Don McBeath Lubbock County Judge Giles Dalby Garza County Job Training and Employment Assistance MEMO FOR CITY COUNCIL MEMBERS SUBJECT: PRIVATE INDUSTRY COUNCIL (PIC) DISALLOWED COST PLAN BACKGROUND: 1. For several years, the Private Industry Council has operated with a "Disallowed Cost Plan" that had no funds committed for it and only a lot of "good faith". The Texas Department of Commerce has recently made it mandatory that each Service Delivery Area have a plan that has a minimum of $3000. of CASH committed as backing/collateral and it must be from non-federal funds. 2. Since the citizens of the City of Lubbock, Lubbock County, and Garza County benefit to the tune of almost $3 million annually, this is a very small commitment from these taxing authorities should problems ever arise. Any problem areas would have to arise from state audits, various monitoring reviews, investigations, or audit questions/exceptions identified in the annual CPA audits. None of these have ever occurred where the PIC was required to pay disallowed costs. 3. Lubbock County Commissioners have authorized Judge McBeath to sign for $500. of the $3000. and Judge Dalby has signed for $500. for Garza County. - 4. Don McCullough, Executive Director for the PIC will be available Itanswer any questions you may have at the Council meeting on October 1992. ACTION RECOMMENDED That the City Council authorize the Mayor to sign the PIC Disallowed Cost Plan guaranteeing $2000. should they ever occur and no other repayment options exist such as services in lieu of cash repayment. bsou Lub Ganz Co, Private In usayr Cound (nc. 1218 14th Street Lubbock, TX 79401 (806)765-5038 FAX(806)765-6944 Barry Ballinger Chairman Don McCullough Executive Director Chief Elected O,ficiala Mayor David R. Langston City of Lubbock Judge Don McBeath Lubbock County Judge Giles Dalby Garza County Job Training and EmploymentAuistance September 8, 1992 To: Mayor David R. Langston Judge Don McBeath Judge Giles Dalby 1. A recent audit performed by the State Auditor's Office determined that -the Disallowed Costs Plans on file at the Work Force Development Division, Texas Department of Commerce, for the Service Delivery Areas that provide the Job Training Partnership Act (JTPA) services throughout the State of Texas are not adequate nor are they feasible. As a result of this audit, the Texas Department of Commerce established a study group to determine the minimum criteria for the disallowed costs plans. 2. This study group found that only a few cash repayments due to disallowed costs had ever occurred in Texas with the largest amount being a $4,000. repayment from a Private Industry Council for exceeding the statutory 15% cost limitation in the cost category of Administration. 3. Based on their findings, the study group agreed to establish the following criteria as the minimum for an acceptable disallowed cost repayment plan. 1. Minimum of $3,000 in cash immediately available 2. Source must be from non-federal funds 3. Signatures of the entities which will contribute The Texas Department of Commerce wants it understood that they will. work cooperatively with each entity and will make every attempt to resolve any questioned costs that are subject to a cash repayment. The cash repayment to resolve disallowed costs would be absolutely the last resort and will be pursued only if all other legitimate means available have failed to resolve the issue. 4. JobSource+ serves the City of Lubbock, Lubbock County, and Garza County and manages the Job Training Partnership Act funds for this area amounting to approximately $3 million annually. JobSource+ was 0bbhs.QH'CP Gana Co.rivan ustry Council Inc. 1218 14th Street Lubbock, TX 79401 (806)765-5038 FAX(806)765-6944 Barry Ballinger Chairman Don McCullough Executive Director Chief Elected OJf "icials Mayor David K Langston City of Lubbock Judge Don McBeath Lubbock County Judge Giles Dalby Garet County Job Training and Employment Assistance incorporated in September 1987 and began operations in July 1988 as the administrative entity in order to receive the JTPA funds. Since the inception of JobSource+, there has been no disallowed costs established by the Texas Department of Commerce. As a result of the benefits to thousands of citizens in this SDA, this guarantee, although it should never be used, is a very small potential investment from these entities. 5. Request your assistance in obtaining the appropriate authority from the City Council, for the City of Lubbock, and the Commissioner's Courts for the two counties so that you may each provide the guarantees listed in our revised Disallowed Cost Plan at attachment 1. Sincerely, 41- k OV? Don McCullough Executive Direct( DM;cv Attachment: Disallowed Costs Plan Resolution No. 3992 October 22, 1992 Item #4 qbPbsourcp Garza Co, Private ZuMsq, Council Inc, CITY OF LUBBOCK, LUBBOCK COUNTY, AND GARZA COUNTY SERVICE DELIVERY AREA 1218 14th Street Lubbock, TX 79401 (806)765-5038 FAX(806)765-6944 Barry Ballinger Chairman Don McCullough Executive Director Chief Elected Officiab Mayor David R. Langston City of Lubbock Judge Don McBeath Lubbock County Judge Giles Dalby Garza County Job Training and Employment Assistance DISALLOWED COSTS PLAN INTRODUCTION The Private Industry Council, Inc. (PIC) and the chief elected officials for the Lubbock/Garza Co. Service Delivery Area have agreed to carry out their duties relative to the Job Training Partnership Act (JTPA) in a cooperative manner and in accordance with the terms of the Act and regulations issued pursuant thereto. Based on principles of good management and the application of a system designed with multiple checks and safeguards, no disallowed costs should ever occur. This plan is designed and intended for use only if minor infractions, errors or omissions should ever occur. PURPOSE The purpose of this plan is to establish a policy and priority for actions, should they become necessary, if disallowed costs ever occur in the administration of the JTPA funds for the City of Lubbock, Lubbock County, and Garza County Service Delivery Area. These disallowed costs are defined as those costs that are questioned as a direct result of a State or local monitoring review, local or state investigation, and/or audit questions/exceptions identified in the annual CPA audit required of all JTPA Contractors with the State of Texas. POLICY It is the expressed policy of the City of Lubbock, Lubbock County and Garza County Private Industry Council, Inc. that should any disallowed costs occur in conducting the activities required relative to the JTPA funds provided by the State of Texas for this Service Delivery Area, that these costs will be borne and paid by the responsible party if they occurred as a result of a deliberate act that violated any terms of the Act or regulations used pursuant thereto. For subcontractors of the PIC, they will be held accountable in the provisions of their contracts regardless of the intent, deliberate or accidental. For employees of the PIC and/or PIC members, if the disallowed cost was not deliberate, the following priority of actions will be followed: A. Management efforts will be directed toward correcting the error or omission in such manner as to avoid or reverse the disallowed cost. B. If the above actions are not successful, management efforts will then be directed toward cooperative actions with State of Texas officials to provide other services in lieu of cash repayment or the provision of allowable in -kind services in lieu of cash repayment. C. If all the above actions are not successful, the undersigned elected officials, representing the City of Lubbock, Lubbock County, and Garza County, do affirm that those entities will provide cash repayment up to the maximum amounts reflected below, or applicable portions thereof, should the disallowed costs be less than the maximums specified. City of Lubbock $2000. Lubbock County $ 500. Garza County $ 500. TERMINATION All parties agreeing to this plan retain the right to terminate all performances and obligations under this plan by notifying the other parties in writing of such termination at least thirty (30) days prior to the effective date of termination. Mayor, City of Lubiock David R. Langston 10/22/92 Date Judge, Lubbock County Judge, Garza County Date Chairman, Lubbock/Garza Co. Private Industry Council Date Date