BE A FI$CAL $.T.A.R.

1. BE A FI$CAL $.T.A.R. VR PRACTICES

2. REORGANIZATION OF THE DESIGNATED STATE AGENCY AND THE DESIGNATED STATE UNIT Presenters: Jim Doyle, VR Program Specialist, SMPID VR Unit Craig McManus, Financial Management Analyst, SMPID Fiscal Unit

3. Organizational Structure • Reorganization • Requirements for Reorganizations • Independent Living Programs • Randolph-Sheppard Program • In-Service Training Grants • State Grant for Assistive Technology • Client Assistance Program • Fiscal/Grant Transfer • Questions OVERVIEW

4. The Rehabilitation Act and its implementing regulations permit states to select from a variety of options when organizing the VR program within their governmental structures. • States must identify a designated state agency (DSA) as the sole state agency to administer the VR State Plan (34 CFR 361.13(a)), or two state agencies, one “general” and one “blind” agency, each responsible for the administration of its respective portion of the plan (34 CFR 361.13(a)(3)). Organizational Structure

5. Organizational Structure (cont.) • A designated state agency (DSA) is a state agency primarily concerned with vocational rehabilitation or vocational and other rehabilitation of individuals with disabilities or that includes a vocational rehabilitation unit. • A designated state unit (DSU) is the state vocational rehabilitation bureau, division or other organizational unit that is primarily concerned with vocational rehabilitation or vocational and other rehabilitation of individuals and is responsible for the administration of the VR program.

6. Organizational Structure (cont.) • When considering a change in the organization of the governmental entity or entities currently administering the VR program (e.g., the DSA(s) and/or DSU(s)), states must ensure that the proposed structure meets the required statutory and regulatory requirements set forth at section 101(a)(2) of the Rehabilitation Act and 34 CFR 361.13. • If a state identifies a new DSA to administer the VR State Plan, the state must ensure that the agency is primarily concerned with VR, or VR and other rehabilitation of individuals with disabilities.it disabilities.

7. Organizational Structure (cont.) • If the new DSA is not primarily concerned with VR, or VR and other rehabilitation of individuals with disabilities, the state must assure the agency contains a DSU that: • Is primarily concerned with VR, or VR and other rehabilitation, of individuals with disabilities, and is responsible for the VR program of the DSA; • Is administered by a full-time director; • Employs staff on the rehabilitation work of the organizational unit or substantially all of whom devote their full time to such work; and • Is located at an organizational level and has an organizational status within the DSA comparable to that of other major organizational units of the DSA.

8. Organizational Structure (cont.) • The DSU also is required to carry out the following non-delegable responsibilities: • The determination of eligibility, the nature and scope of services, and the provision of those services (34 CFR 361.13(c)(1)(i)); • The determination that individuals have achieved employment outcomes (34 CFR 361.13(c)(1)(ii)); • Policy formulation and implementation (34 CFR 361.13(c)(1)(iii)); • The allocation and expenditure of VR funds(34 CFR 361.13(c)(1)(iv)); and • The participation of the DSU in the 0ne-Stop service delivery system in accordance with Title I of the Workforce Investment Act (WIA) and the regulatory requirements specified in 20 CFR Part 662 (34 CFR 361.13(c)(1)(v)).

9. Reorganizations, for purposes of the VR program, can take many different forms. For example, a reorganization can involve: • the creation of a stand-alone DSA; • the movement of a DSA or DSU into another department; • the division of a combined DSA or DSU into separate general and blind agencies; • the combination of separate general and blind DSAs or DSUs into a single combined agency; • the relocation of the DSU within the same department; • the movement of other programs and offices into the DSU; and • a combination of these options. Reorganization

10. Reorganization (cont.) Each form of reorganization has implications for the state’s ability to comply with the federal organizational structure requirements and those governing the non-delegable responsibilities of the DSU.

11. A reorganization of the DSA and/or DSU can affect the structure and composition of the State Rehabilitation Council (SRC), or the structure of the VR agency as a consumer-controlled independent commission. Each state must provide an assurance that it meets one of the following requirements: • Establishes a single or separate SRCs for the VR agency or agencies in the state; or • The DSA, or DSAs if more than one exists, is an independent commission. Requirements for Reorganization

12. Requirements for Reorganization (cont.) • States should contact their RSA state liaison as early as possible to determine whether their reorganization is in compliance with federal requirements, including submitting proposed legislation or executive order requiring the reorganization. Information provided should include: • The effective date of the reorganization; • The structure of the VR agency, either as a DSA or DSU; • The location of the DSU, if one exists, within the DSA; • The director of the VR agency and to whom the director will report to; • Any intervening levels of organization between the DSU and the DSA; and • The composition and membership of the SRC if the new DSA will not be an independent commission. • .

13. Requirements for Reorganization (cont.) • . • Prior to the implementation of any reorganization, the state must complete the following actions: • Consult with stakeholders; • Conduct public hearings; and • Amend its State Plan (if implemented prior to the end of the fiscal year).

14. Requirements for Reorganization (cont.) • Consult with stakeholders • Stakeholders include: • Tribal organizations and native Hawaiian organizations; • Stakeholders of the agency; • Director of the Client Assistance Program (CAP); and • SRC. • .

15. Requirements for Reorganization (cont.) • Conduct Public Hearings • Prior to substantive changes in the administration of the VR program, public hearings must be conducted that must: • Provide sufficient notice pursuant to state law, or procedures developed by the DSA in the absence of state law; • Be held in different locations throughout the state: Use of technology may be utilized if it allows real-time interaction between participants and speaker at each location; and • Allow appropriate modes of communication including any written material. • .

16. Requirements for Reorganization (cont.) • State Plan Requirements • If the reorganization becomes effective prior to the end of the fiscal year (September 30th), the VR agency must amend, at a minimum, the following: • Section 1 of the preprint identifying the agency authorized to submit and administer the State Plan; • Section 4.1 of the preprint, which identifies whether the state agency authorized to administer the State Plan has been designated as a DSA or DSU; • Section 4.2 of the preprint specifying whether the VR agency is an independent commission or has an established SRC; • Attachment 4.2(c) containing the input from the SRC regarding the reorganization and the agency’s response, including an explanation of why any input was rejected, if applicable; • The signature and date the amended State Plan was submitted by the authorized signatory; and • The name of the DSA and/or DSU wherever it appears in the preprint and attachments, if the reorganization involves a change in the VR agency name. • .

17. The state agency (or agencies) responsible for the administration of the VR program is responsible for the administration of the state independent living services (SILS) and centers for independent living (CIL) programs authorized under Chapter 1 of Title VII. • The designated state agency for the independent living services for older individuals who are blind (OIB) program must be the state agency authorized to provide rehabilitation services to individuals who are blind, whether that is a combined or separate agency. Independent Living Programs

18. Independent Living Programs (cont.) • . • State Plan for Independent Living (SPIL) • When an agency that administers the state’s SPIL is reorganized, the SPIL must be amended. • Amendments must include, at minimum, the following: • Section 1, Part I; • Section 9, Part I; and • Section 4, Part II.

19. Independent Living Programs (cont.) • The DSU must retain specific non-delegable duties under the SILS and CIL programs, such as: • Receive, account for, and disburse funds distributed to the state under Chapter 1 of Title VII, in accordance with the SPIL; • Provide administrative support services for a program under part B, and a program under part C in a case in which the program is administered by the state under section 723 of the Rehabilitation Act; • Maintain and afford access to such records as the RSA Commissioner finds to be necessary with respect to the programs; and • Submit additional information or provide assurances, as the Commissioner may require, with respect to the programs. • .

20. The Randolph-Sheppard program must be administered only within the DSA or DSU responsible for the provision of VR services to the blind. Any reorganization must place the Randolph-Sheppard Program within a DSA or DSU that provides VR services to individuals who are blind, including both combined and blind agencies. Randolph-Sheppard Program

21. The State Licensing Agency (SLA) is the DSA or DSU that administers the Randolph-Sheppard program and should provide RSA with the following information related to reorganization: • The state authority to operate the Randolph-Sheppard Program; • Any changes being considered to its governing program policies or rules, including the active participation by its Elected Committee of Blind Vendors; and • Any state legislation that provides priority to Randolph-Sheppard vendors that is appropriately updated to reflect the reorganization. Randolph-Sheppard Program (cont.)

22. Prior to the effective date of the reorganization, the DSA or DSU for the VR program must notify RSA and provide the following assurances: • Serve all populations specified in the original grant application; and • Use the same key personnel to conduct the work of the grants or substitute personnel who have been approved by RSA as meeting the same level of qualifications. In addition, the following documents must be submitted by the new designated state agency: • Application for Federal Assistance (Form SF-424); • Certification Regarding Lobbying Form (ED-80-0013); and • Budget Information for the grant (Form ED-524). In-Service Training Grants

23. The SGAT is designated by the Governor for each state. Prior to any redesignation of the SGAT, the Governor must demonstrate to RSA “good cause” for a new agency being designated as the lead agency to administer the AT grant. The Governor must also demonstrate that the new agency will be able to effectively administer the AT grant and meet the requirements of the Assistive Technology Act. Once approved by RSA, the new entity must submit a new AT State Plan containing program goals and activities. State Grant for Assistive Technology (SGAT)

24. If a state has designated its CAP within the DSA, reorganization may require the CAP to be redesignated to an independent entity. Pursuant to Section 112(b) of the Rehabilitation Act, a state must have an effective and operational CAP prior to receiving funding for any program authorized under the Rehabilitation Act. Client Assistance Program (CAP)

25. Client Assistance Program (cont.) Section 112(c)(1)(B)(ii)(I) of the Rehabilitation Act states if a DSA “undergoes any change in the organizational structure of the agency that results in the creation of 1 or more new state agencies or departments or results in the merger of the designated state agency with 1 or more other state agencies or departments,” the CAP must be redesignated to a public or private agency independent of any agency that provides treatment, services, or rehabilitation to individuals under the Rehabilitation Act.

26. Fiscal / Grant Transfer

27. New Grant PR/Award Numbers RSA staff will establish a new PR/Award Number(s) assigned to the transferee in the G5 grants management system. The transferor’s PR/Award Number(s) will no longer be used once all grant funds have been drawn down or transferred, and the award is closed.

28. DUNS Numbers and Banking Information PR/Award Numbers in the G5 system must have both a Grantee and Payee data universal numbering system (DUNS) number for the grantee to access funds. Grantees must work with RSA and G5 staff to ensure both Grantee and Payee DUNS numbers, as well as banking information, are successfully entered into the G5 system.

29. G5 Access The transferee will be required to register in the G5 system to access grant funds: https://www.g5.gov Follow the instructions after selecting the “Non ED employee Sign Up” link.

30. Grant Transfer Agreement The transferor and transferee may enter into either a single grant transfer agreement (GTA) covering each federal award, or separate agreements for each. The GTA must reference the authorizing state statute, legislation, or executive order authorizing the grant transfer.

31. Grant Transfer Agreement (cont.) RSA may provide grantees with suggested language and format for the GTA, but the state will assume responsibility for the development of the GTA. The GTA must be reviewed and approved by RSA before implementation.

32. Grant Transfer Agreement (cont.) • The GTA provides: • Important dates (e.g., implementation, transfer, final report dates, closeouts); • Amount of initial transfer to transferee; • Amount retained by transferor for allowable obligations incurred prior to transfer date; • Transfer of equipment; and • Reporting responsibilities.

33. Fund Transfers • The point in the fiscal year that the reorganization is implemented will determine how immediate the transferee will need funding:  • Mid-fiscal year: Transferee requires funding immediately to begin administering the VR program and providing services; or  • New fiscal year (October 1st): Transferee will have federal funding through new award when available from Congress, the match from non-federal sources, and it may receive any allowable carryover balances from the transferor.

34. Final Transfers After the transferor has liquidated any allowable unliquidated obligations incurred prior to the effective date of the transfer, any remaining balance of funds will be transferred to the transferee. Final transfers and transfers of allowable carryover funds that occur in the second year of the grant period require RSA to seek approval for a Request for Use of Prior Year funds.

35. Match The match requirement must be met by 9/30 of the FIRST year of the grant award.   A mid-year transfer will require the collaboration of the transferor and transferee to ensure that the match requirement is met through the sum of the non-federal share of both entities. Transfers implemented on October 1st will require the transferor to have met match before any allowable carryover may be transferred to the transferee.

36. Maintenance of Effort (MOE) The MOE requirement must be met by 9/30 of the first year of the grant award. Transferee and transferor must collaborate to ensure the MOE requirement is met.

37. Reporting Transferee and transferor are responsible for both performance and financial reporting to RSA.  Both entities must ensure the appropriate personnel maintain, obtain, or perhaps terminate their access to the program and fiscal reports on the RSA website http://rsa.ed.gov/ To obtain access from the website, select “Info for new users” on the right side of the home page and follow the instructions under “OBTAINING MIS ACCESS.” 

38. Reporting (cont.) Generally, the transferor is responsible for providing data required for the transferee to complete all annual performance and fiscal reports. The transferee will submit the report for the entire fiscal year (e.g., RSA-2 and RSA-911 reports).  For reports submitted more frequently, the transferor is responsible for reports due up until the date of the reorganization, and the transferee is responsible thereafter (e.g., SF-425 and RSA-113 reports).

39. Reporting (cont.) Final SF-425 Report  The transferor must submit a final SF-425 report for each grant within 90 days from the date signifying the end of grant support, typically the implementation date of the GTA.  Transferor and transferee must coordinate to determine if all unliquidated obligations were liquidated, or if the transferee must draw and expend funds to meet any remaining obligations.

40. Collaboration • For an efficient and effective reorganization, the transferee and transferor must collaborate and communicate regarding the:  • Development of the GTA; • Transfer of federal award funds; • Transfer or equipment; • Match and MOE requirements; • Ensuring transferor’s obligations are met; and • Fiscal and programmatic reporting.

41. For More Information: Submission, Approval, and Disapproval of the State Plan 34 CFR 361.10; Non-delegable responsibilities of the DSU: 34 CFR 361.13(c); Establishment of an Independent Commission or State Rehabilitation Council: Section 101(a)(21) of the Rehabilitation Act and 34 CFR 361.16(a); Requirements for a State Rehabilitation Council 34 CFR 361.17; Public Participation Requirements 34 CFR 361.20; Matching Requirements 34 CFR 361.60; IL Program: 34 CFR 364; OIB Program: 34 CFR 367; CAP: Section 112(c)(1)(B)(ii)(I) of the Rehabilitation Act: 34 CFR 370; Matching or Cost Sharing 34 CFR 80.24; Maintenance of Effort 34 CFR 361.62; Financial Reporting 34 CFR 80.41; Closeout 34 CFR 80.50; Randolph-Sheppard Program: The Randolph-Sheppard Act, 20 U.S.C. 107a(e); 34 CFR 395.2(a);

42. For More Information: State Grant for Assistive Technology Program: Assistive Technology Act; RSA-TAC-13-02 Reorganization of the Designated State Agency and the Designated State Unit for the Vocational Rehabilitation Program www.ed.gov/policy/speced/guid/rsa/tac/2013; TAC 12-03, Organizational Structure and Non-Delegable Responsibilities of the Designated State Unit for the Vocational Rehabilitation Program www.ed.gov/policy/speced/guid/rsa/tac/2012; TAC 12-02, Submission of theFY 2013 State Plan for the Vocational Rehabilitation Services Program and Supplement for the Supported Employment Services Program www.ed.gov/policy/speced/guid/rsa/tac/2012; and Refer to TAC 12-01, Federal Requirements Governing the Composition and Membership of, and Appointments to, the State Rehabilitation Councils www.ed.gov/policy/speced/guid/rsa/tac/2012.

43. QUESTIONS?