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.)