803 KAR 6:010. Kentucky Labor Management Matching Grant Program.

 

      RELATES TO: KRS 336.165

      STATUTORY AUTHORITY: KRS 13A.200, KRS 336.165

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 336.165 requires the Office of Labor Management Relations and Mediation to provide grants-in-aid to labor management organizations that include both labor and management representatives, for the purpose of improving labor management relations or improving communications with respect to subjects of mutual interest or concern to labor and management. This amendment to the existing administrative regulation is promulgated to clarify the grant procedure. The function of this administrative regulation is to define what types of labor management organizations are eligible for funding, define local match requirements associated with a grant-in-aid, explain the application cycle, application requirements and reporting requirements, selection criteria for projects that will be funded, and terms and conditions governing the grant process.

 

      Section 1. Definitions. (1) "Director" means the Executive Director of the Office of Labor Management Relations and Mediation.

      (2) "Grant" means a grant-in-aid dispensed through the Office of Labor Management Relations and Mediation for the purpose of improving labor management relations or communications with respect to subjects of mutual interest or concern to labor and management.

      (3) "Office" means the Department of Labor's Office of Labor Management Relations and Mediation.

 

      Section 2. Eligibility. (1) Any existing or newly created labor management committee is eligible to apply for project funding provided it encompasses any one of the following: a specific geographic area within Kentucky, such as a municipality, several contiguous counties, a plant, an industry or a segment of the public sector, such as police officers, firefighters or teachers. Institutions of higher learning are also eligible for funding under the program provided they are involved in educational or research projects relating to the improvement of labor management relations.

      (2) To be funded, the organization must meet the following criteria: it must have a specific project proposal that can be completed in a one (1) year period; be organized jointly by employers and employee organizations in that area, plant, industry or segment of the public sector; be established for the purpose of improving labor management relations, job security, organizational effectiveness, enhancing economic development, or involving workers in decisions affecting their jobs, and improving communications with respect to subjects of mutual interest or concern to employers and their employees. The project must include persons representing the labor management community within the area, plant, industry or segment of the public sector that it serves.

      (3) For institutions of higher learning, the college or university must be involved in providing educational services concerning subjects relative to the improvement of labor management relations or be involved in research projects that relate to the improvement of labor management relationships.

 

      Section 3. Application Process. (1) The office shall annually publish a grant application package that shall explain eligibility requirements, selection criteria, match requirements, reporting requirements and any other information applicable to the grant program.

      (2) The office shall prepare and make available all forms for documentation necessary to administer the program. Any organization or institution seeking project funding under the program shall submit an application package to the office.

 

      Section 4. Selection Criteria. (1) Selection criteria that will be used by the office in making grant awards will include:

      (a) The extent to which the application has clearly identified the issues or problems that the proposed project will address;

      (b) The feasibility of the approach proposed to attain the goals and objectives of the project and the perceived likelihood of accomplishing the expected project results;

      (c) The appropriateness of organization membership and the degree of commitment of those individuals to the goals and objectives of the proposed project;

      (d) The feasibility and thoroughness of the implementation plan in specifying major milestones and target dates;

      (e) The cost effectiveness and fiscal soundness of the applicant's budget request and long-term budget, as well as identification of the amounts and sources of the local match; and

      (f) The overall feasibility of the proposed project in light of all of the information presented for consideration and the overall quality of the application.

      (g) For organizations that have received at least one (1) previous grant, the extent to which the grantee has complied with the requirements of this administrative regulation.

      (2) No funds shall be awarded under the following circumstances:

      (a) In-plant labor management projects unless the employees in that plant are represented by a labor organization and there is in effect at that plant a collective bargaining agreement.

      (b) An area, industry-wide or public sector labor management project unless participants in the sponsoring organization include any labor organization certified or recognized as the representative of employees of an employer participating in such organization. However, employers whose employees are not represented by a labor organization may participate in area, industry-wide or public sector organizations.

      (c) To any organization which interferes with the collective bargaining activities in any plant, industry or segment of the public sector.

      (d) For recreational projects, such as labor management golf, fishing or tennis outings.

 

      Section 5. Grant Amounts. (1) Project grants to eligible labor management organizations shall be limited to a maximum amount of $15,000 per project for area and industry specific labor management organizations and to a maximum of $10,000 per project for in-plant, public sector and institution of higher learning-based labor management organizations.

      (2) The office may reduce the requested amount of grant funds based on the appropriateness of the proposed project to goals and objectives of the grant program and to other such selection criteria as stated in Section 4(1)(a) through (g) of this administrative regulation.

 

      Section 6. Length of Grants. (1) All grant awards shall be limited to a period of twelve (12) months. The grant program year will run July 1 through June 30.

      (2) Funding of one (1) project does not guarantee funding of others. Applications for project funding shall be considered on a project-by-project basis annually. Project goals and objectives shall be capable of being completed within a one (1) year period.

      (3) As it is the intent that organizations seeking funding become self-sufficient over a five (5) year period, organizations will be limited to a maximum of five (5) project grants.

 

      Section 7. Matching Requirement. (1) Matching grants under the program shall not exceed ninety (90) percent of the total operating cost of the funded project.

      (2) Matching funds may come from private sources or from local and federal government sources. Proceeds from project grants or other funds obtained from other agencies of state government may not be used to meet match requirements.

      (3) Local matching funds must include at least fifty (50) percent cash and no more than fifty (50) percent "in-kind" services, such as donated office space, clerical support, equipment, postage, etc., which directly accomplishes the objectives of the project. In considering projects for funding, the office shall give preference to full cash match as opposed to cash plus in-kind services.

      (4) Grant applications must be accompanied by letters of commitment from official representatives of public or private sources of matching funds.

      (5) As a goal of a labor management committee is to become self-supporting, project income shall be an allowable source of matching funds after the organization has completed one (1) successful project.

 

      Section 8. Reporting Requirements. (1) The Office of Labor Management Relations and Mediation shall monitor and evaluate the activities of an organization receiving grant funding.

      (2) A participating organization shall submit monthly to the office a programmatic report outlining the goals and objectives which have been achieved during the previous month. This report must specify if the major milestones identified by the applicant in its application package are being met in accordance with the timetable provided; if not, an explanation of why these milestones have not been met shall be provided. This report shall be on forms prepared by the office. An applicant shall also submit to the office monthly expenditure reports summarizing and describing line-item costs charged to the grant and line-item matching share supplied by the applicant where applicable. These expenditure summaries shall be on forms prepared by the office. The monthly report shall be submitted to the office no later than the tenth of the month following the end of the monthly reporting period.

      (3) To enable the office to better monitor and evaluate funded projects, it may schedule meetings of representatives of organizations receiving project funding. Attendance by grantees at any such scheduled meeting shall be mandatory.

 

      Section 9. Application Requirements. (1) The application for project funding by area, in-plant, industry-wide and public sector labor management organizations shall include the following information:

      (a) Eligibility certification.

      1. A description of the structure of the organization (e.g., not for profit, incorporated, etc.) including any articles of incorporation, not for profit certification or current bylaws.

      2. The specific geographic area or specific industry served by the organization.

      3. A list of the board members and their affiliation including current letters of commitment from all board members and cochairpersons.

      4. The name, title, and job description of all full-time and part-time organization staff.

      5. A brief organization history including its formation date, major focus and activities and past funding history, if applicable.

      6. The name and a summary of the nature of the organization's affiliation with other local, state or federal agencies or organizations.

      (b) Goals and objectives. Using specific goals and objectives, a description of what the labor management project shall accomplish within the grant period. Goals and objectives shall be expressed in measurable terms. In addition, a description of the criteria used by the organization to evaluate its success in meeting specific goals and objectives.

      (c) Implementation timetable. An outline of the applicant's proposed activities during the grant period with major milestones or activities and target dates for accomplishing goals and objectives.

      (d) Budget. A detailed budget and narrative for the project for the grant period, including a summary of the source of the local match; documentation specifying the dollar amount or the commitment from sources of the local match; if in-kind contributions are being included as part of the local match, documentation as to what constitutes the in-kind contribution and its estimated dollar value.

      (2) An application for project funding by institution of higher learning-based labor management organizations shall include the following information:

      (a) Eligibility certification.

      1. A description of the primary nature of the institution's business (e.g., university, college or community college, etc.).

      2. A description of the intended beneficiaries of the educational or research and development project to be undertaken (e.g., companies, unions, labor management committees, industries, etc.).

      3. The names and a summary of the previous experience of the individuals who will be involved in the project and references, copies of previous research projects and a description of past labor management experience.

      (b) Scope of work.

      1. A description of the project to be undertaken with the grant funds, including a list of the objectives of the project.

      2. A description of the target audience who will benefit from such project and a summary of anticipated results of the project.

      3. An explanation of the methodology to be used in the project (e.g., data collection, surveys, personal interviews, symposia, etc.).

      (c) Implementation timetable. An outline of the proposed activities of the project over the grant period with major milestones or activities and target dates for accomplishing the project's objectives.

      (d) Budget. A budget narrative for the grant period shall be submitted, including a summary of the source of any funds to be used to supplement the state grant. The total project cost, as well as the amount and source of other funds to be devoted to the project.

 

      Section 10. Application Evaluation. (1) Applications shall be reviewed and evaluated for completeness by the office staff under the supervision of the director. The review and evaluation process shall be completed within forty-five (45) days after receipt of the application package by the office.

      (2) Upon receipt of a completed application for a matching grant, the director shall provide a copy of the application to the Secretary of Labor for review and comment prior to awarding any grant. The director shall consider the recommendations and comments of the Secretary of Labor in awarding grant funds.

 

      Section 11. Audit Policy. (1) An independent audit of grant fund expenditures by organizations shall be performed. Organizations are responsible for arranging for the audit of project expenditures within thirty (30) days of completion of the project. The audit shall include an examination of the organization's project records to determine that financial standards are maintained in accordance with generally accepted accounting principles and that project funds were expended in accordance with the terms of the grant. Costs for conducting the audit shall be a legitimate budget item. The organization shall submit three (3) copies of the completed report to the office.

      (2) Grant funds not expended by the organization at the end of the grant period shall be returned to the Kentucky Labor Management Matching Grant Program.

 

      Section 12. Project File. (1) The office shall establish and maintain an official project file and assign a grant number for each grant project.

      (2) The project file shall contain the notice of grant award which shall be signed by the Secretary of Labor and an authorized representative of the participating organization. The notice of grant award shall cite the statutory authorization for the grant, the total dollar amount of the grant, all special terms and conditions of the grant, and an authorization for the grantee to incur costs against the grant during the grant period. The grantee's authorized signature shall constitute acknowledgment of the grantee's acceptance of the grant award and all terms and conditions governing the grant.

 

      Section 13. Terms and Conditions Governing the Grant. (1) Fiscal recording/reporting requirements. The grantee's financial management system shall be structured to provide for accurate, current, and complete disclosure of the financial results of the grant program. The grantee is accountable for all grant funds received. Grant funds received by the grantee shall be deposited timely and intact into a separate bank account established solely for the use of the grant funds. The grantee shall maintain effective control and accountability over all funds, equipment, property, and other assets under the grant as required by the office. The grantee shall keep records which detail the expenditures of grant funds and accurately document such expenditures sufficient to permit the tracking of grant funds.

      (2) Audit requirement. A final financial and compliance audit shall be performed by the grantee. This audit shall include both the state and required matching share of the project. The grantee shall be responsible for correcting any deficiencies disclosed by such audit, including such action as the office, based on its review of the audit report, may direct. The audit of all appropriate project records shall be performed by an independent public accountant certified and licensed by the state of Kentucky.

      (3) Matching contributions. As required in Section 7 of this administrative regulation, the grantee's matching contribution shall meet all of the following criteria:

      (a) Be under the control of the key project officer;

      (b) Be necessary and reasonable for proper and sufficient administration of the program;

      (c) Be critical to the success of the project if it is a personal service match;

      (d) Be supported by individual monthly time records of services rendered and detailed documentation of all other applicable, direct and indirect costs of the program;

      (e) Not be a general expense of the grantee which is incurred in carrying out overall responsibilities other than those required under the grant.

      (4) Modification and amendment of the grant. A grant is subject to revision only as follows:

      (a) Modifications by operation of law. Any modification required by changes in state law or administrative regulations shall be incorporated into the grant as fully as set forth in the terms and conditions. The office shall notify grantees of any amendment to administrative regulations.

      (b) Modifications in budget. Grantee may make a line-item transfer only with prior written approval by the director. The grantee shall not make any change in line items which increases the total grant budget.

      (c) Suspension. If the grantee fails to comply with the special conditions or the general terms and conditions of the grant award, the office may, after notice to the grantee, suspend the grant and withhold further payments or prohibit the grantee from incurring additional obligations of grant funds, pending corrective action by the grantee. The office may determine to allow necessary and proper costs which the grantee could not reasonably avoid during the period of suspension, provided the costs were necessary and reasonable for the conduct of the project.

      (d) Termination. A grant may be terminated as follows:

      1. Termination due to loss of funding. The office may terminate, in full or part, any grant in the event the office suffers a loss of state appropriations. If loss of state appropriations occurs, the office shall give the grantee written notice of the effective date of full or partial termination, or if a change in funding is required, notice of the change and the changes in the approved budget.

      2. Termination for cause. If the office determines that the grantee has failed to comply with the general terms and conditions of the grant, the office may terminate the grant, in whole or part, at any time before the date of completion. The office shall promptly notify the grantee in writing of the determination to terminate, the reasons for such termination, and the effective date the termination shall occur.

      3. Termination for convenience. The office or the grantee may terminate the grant, in whole or part, when the office and the grantee agree that continuation of the project objectives would not produce beneficial results commensurate with further expenditures of funds. The office and the grantee shall agree upon termination conditions, including the effective date and, in the case of partial terminations, the portion of the grant to be terminated. The grantee shall not incur further obligations for the terminated portion after the effective date and shall cancel all outstanding obligations possible. The office shall allow full credit to the grantee for the office's share of the noncancellable obligations properly incurred by the grantee prior to termination.

      (e) Access and inspections. The grantee shall at any time permit the office or the State Auditor's office or any of their duly authorized representatives to have full access to and the right to examine any pertinent books, documents, papers and records of the grantee involving transactions related to a grant for three (3) years from the date of submission of the final expenditure report or until all audit findings have been resolved, whichever is later.

      (f) Access and inspection of subcontractors. The grantee shall include in any grant proposal a provision that the office or the State Auditor's office or any of their duly authorized representatives shall have full access to and the right to examine any pertinent books, documents, papers, and records of any subcontractor involving transactions related to a grant for three (3) years from the final payment under the contract.

      (g) Monitoring and evaluation. All grants shall be monitored periodically by the office throughout the program year for compliance with these administrative regulations. Evaluations shall be made both during the operation of the program and upon its completion. Program evaluation shall be based on the ability of the grantee to meet specific goals and objectives outlined in the application and for the effective and efficient utilization of grant funds.

      (h) Liabilities. The grantee shall agree to be solely liable for all claims, demands, and actions based upon or arising out of any services performed by themselves or by their associates and employers under a grant.

      (i) Publication, reproduction, and use of material. The office shall have authority to publish, distribute and otherwise use any reports, data, or other materials prepared through funds. Any publication produced as a result of grant funds shall include on its title page the following citation: "This project was conducted with funds provided under the Kentucky Labor Management Matching Grant Program by the Kentucky Department of Labor's Office of Labor Management Relations and Mediation."

      (j) Interest on grant funds. All interest earned on grant funds held by the grantee shall become part of the grant principle when earned; interest earned on grant funds may be retained by the grantee when the office determines that the cost of accounting for the interest or allocating the interest to the grant principle is significant in comparison with the interest earned. Any interest earned under the grant, and not expended as grant principle during the term of the grant, shall be returned to the office.

      (k) Grantees shall agree that no grant funds shall be used for any partisan or nonpartisan political activity or to further the election or defeat of any candidate for public office, nor shall they be used in any way to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any election or voter registration activity. (16 Ky.R. 2296; eff. 6-10-90; Am. 18 Ky.R. 3532; eff. 7-23-92; TAm eff. 8-9-2007.)