1. (a) This section outlines the process and criteria used by the Commission to evaluate Board capacity to oversee and manage local funds and the delivery of local workforce services.

2. (b) The Commission shall use oversight methods outlined in this chapter and elsewhere in statute and rules to evaluate each Board's performance and compliance with applicable laws, regulations, provisions of contracts and Board plans, and official directives and circulars including, but not limited to, DOL Training and Employment Guidance Letters, DOL Training and Employment Notices, U.S. Department of Health and Human Services guidance letters, Commission rules contained in Part 20 of this title, Texas Workforce Commission WD Letters, the Agency's Financial Manual for Grants and Contracts, and other Agency guidance. In particular, the Commission shall evaluate and make findings as appropriate relating to Board fulfillment of responsibilities relating to:

   1. (1) developing, maintaining, and upgrading comprehensive fiscal management and accountability systems;
   2. (2) hiring, training, and retaining qualified staff to carry out the Board's oversight activities;
   3. (3) selecting and overseeing workforce service providers to improve delivery of workforce services;
   4. (4) overseeing and improving operation of Workforce Solutions Offices in the workforce area served by the Board;
   5. (5) managing workforce service providers' performance across multiple Board programs and achieving required performance targets; and
   6. (6) identifying and resolving long-standing oversight problems of the Board and performance problems of workforce service providers.

3. (c) The Commission shall rate each Board's capacity as "above standards," "within standards," or "below standards." The following criteria shall be used to set the rating.

   1. (1) A Board will be rated as above standards if:

      1. (A) the Board meets its targets as defined in §800.2(13) of this title on 90 percent of its measures; and
      2. (B) the Board does not miss the target on any single measure by more than 10 percent of target;
      3. (C) there are no disallowed costs since the prior evaluation; and
      4. (D) there are no repeat findings.

   2. (2) A Board will be rated as within standards if:

      1. (A) the Board meets its targets as defined in §800.2(13) of this title on 80 percent of its measures; and
      2. (B) the Board does not miss the target on any single measure by more than 15 percent of target;
      3. (C) disallowed costs do not exceed 1 percent of allocation; and
      4. (D) there are no repeat findings.

   3. (3) A Board will be rated as below standards if the Board is:

      1. (A) found to not be above or within standards or if there are significant findings; or
      2. (B) under a level-one, -two, or -three sanction as defined in §802.123 of this chapter.
   4. (4) For the purpose of calculating "disallowed costs" as used in this section, do not include such costs that meet the following three criteria: discovered, quantified, and self-reported to the Commission by a Board unless the Commission finds the disallowed costs were the result of gross mismanagement or other significant violation of Board responsibilities;

   5. (5) Notwithstanding any other provision of this section:

      1. (A) The Commission may consider any extraordinary situation related to any of the factors identified in subsection (b) of this section.

      2. (B) The Commission may exclude from consideration under this section performance on measures:

         1. (i) related to new Board responsibilities; or
         2. (ii) for which the Commission finds good cause exists for failure to meet the target.

4. (d) At least annually, the Commission shall post the results of its evaluation of each Board and each Board's performance on its Web site with explanation of the rating, rating criteria, and performance measures in a format that is readily accessible to and understandable by a member of the public.

   1. (1) The explanation shall include specifically how each of the criteria were applied for each Board and how that affected the overall rating.
   2. (2) Evaluations shall be performed using information at the Commission's disposal at the time of the evaluation. If no updated information is available, the Commission is not obligated to schedule a review or visit to confirm or obtain new information.
   3. (3) The Commission may update the Board ratings when new information becomes available but does not intend to update them more often than quarterly.

Source Note:The provisions of this §802.67 adopted to be effective February 7, 2011, 36 TexReg 604.