Appendix d

New Job Counting Method

When was this new method implemented?
The Department adopted administrative rules in June, 2007 to implement the new job counting and tracking method. The rules became effective on June 15, 2007

Excerpt from IDED’s Administrative Rules
261—188.5(15)  Job counting using base employment analysis.  The department will count jobs to be created or retained as part of a funded project using a base employment analysis.  At the time of application, a baseline employment number will be established using payroll records.  The baseline data will include details about how many jobs at the project location already meet the qualifying wage thresholds (with and without the value of benefits added to the hourly wage).  Changes in these baseline employment numbers will be collected and analyzed by the department as part of the annual reporting process.
188.5(1) A base employment analysis will be performed at the following stages of an award:
a.   At the time of application, before the award is made.
b.   Annually during the reporting cycle.
c.   At the project completion date.
d.   At the end of the maintenance date.
188.5(2) Payroll documents or lists run from payroll systems will be used to calculate and verify the base employment analysis.  If a list run from a payroll system is used, the person who submits the documents must, under penalty of perjury, sign the list to verify that it is true and correct.  The following items will be calculated and verified as part of the annual status report:
a.   The total number of FTEs at the funded facility as of the date of the report.
b.   The average wage of all FTEs.
c.   The qualifying wage used in the award.
d.   The benefit value used in the award.
e.   The total number of FTEs at the funded facility that are currently at or above the qualifying wage.
f.    The average wage of the FTEs identified in paragraph “e.”
g.   The total number of FTEs at the funded facility that are currently at or above the qualifying wage after the benefit value has been added.
h.   The average wage of the FTEs identified in paragraph “g.”
188.5(3) For projects involving more than two physical locations or involving more than 500 employees, an independent auditing service will be used to set the business’s employment base and provide payroll analysis.
a.   The following data points will be verified by the independent auditor regarding jobs:
(1)  The total number of FTEs at the funded facility (the business’s employment base).
(2)  The average wage of all FTEs.
(3)  If applicable, the total number of FTEs working at other company facilities within the state of Iowa (statewide base).
(4)  The qualifying wage used in the award (provided by IDED).
(5)  The benefit value used in the award (provided by IDED).
(6)  The total number of FTEs at the funded facility that are currently at or above the qualifying wage.
(7)  The average wage of the FTEs identified in subparagraph (6).
(8)  The total number of FTEs at the funded facility that are currently at or above the qualifying wage after the benefit value has been added.
(9)  The average wage of the FTEs identified in subparagraph (8).
b.   All businesses are required to submit annual reports to the department.  However, if an independent auditing agreement is in place, the business will be required to report only on the following data points concerning jobs:
(1)  The total number of FTEs at the funded facility as of the date of the report.
(2)  The average wage of all FTEs.
c.   The business will not be required to verify this information as submitted for the annual reports and will not be required to submit annual payroll information.
d.   Information submitted concerning the expenditures for the annual report will not change, but verification documents used at project closeout and at the end of project maintenance will be generated by the independent auditor.
188.5(4) Following is an example of the format that the department will use for job counting and tracking using the base employment method.

 

[program] JOB OBLIGATIONS

Project Completion Date:

Project Maintenance Date:

Employment
Base

Jobs
to Be Created

Total
Job
Obligations

Total employment at project location

1

9

12

Average wage of total employment at project location

2

 

 

 

 

 

 

Qualifying wage (per hr)

3

 

 

Benefit value (per hr)

4

 

 

 

 

 

 

Number of jobs at or above qualifying wage

5

10

13

Average wage of jobs at or above qualifying wage

6

 

 

 

 

 

 

Number of jobs at or above qualifying wage w/benefits

7

11

14

Average wage of jobs at or above qualifying wage w/benefits

8

 

 
  1. The number entered in this cell is the total number of FTEs working at the project location at the time of application.  This number must be verified with payroll documents.
  2. The number entered into this cell is the average wage of all the FTEs identified in cell #1.  This number must be verified with payroll documents.
  3. The number entered in this cell is the 90%, 100%, 130%, etc., qualifying wage threshold used in the award.  This data point must include the wage/hr and the percentage in parentheses.  [ex:  $15.34/hr (130%)]
  4. The number entered in this cell is the benefit value used in the award.  N/A (not applicable) should be used for all projects that are not funded with IVF (2005) or HQJC.  All supporting documentation must be included in the file.
  5. The number entered in this cell is the number of jobs identified in cell #1 that meet or exceed the wage reflected in cell #3.  This number is calculated using the payroll documents.  If this project is not funded with IVF (2005) or HQJC, the number of “retained” jobs and retained “other” jobs must be included in this entry.  Please note that the number of retained jobs and the number entered here may not match as all jobs existing at the project site may not be considered retained.
  6. The number entered in this cell is the average wage of all FTEs identified in cell #5.  This number is calculated using the payroll documents.
  7. The number entered in this cell is the number of jobs identified in cell #1 that meet or exceed the wage reflected in cell #3, after the value identified in cell #4 has been added to all base hourly wages reflected in the payroll documents.  If this project is an IVF (2005) or HQJC, the number of “retained” and retained “other” jobs must be included in this entry.  Please note that the number of retained jobs and the number entered here may not match as all jobs existing at the project site may not be considered retained.
  8. The number entered in this cell is the average wage of all FTEs identified in cell #7.
  9. The number entered in this cell number includes the number of “created” jobs, as well as the number of created “other” jobs.
  10. The number entered in this cell is the number of “created” jobs in the project.  This entry is used only for projects that are not IVF (2005) or HQJC.
  11. The number entered in this cell is the number of “created” jobs in the project.  This entry is used only for projects that are IVF (2005) or HQJC.
  12. The number entered in this cell is the sum of cell #1 and cell #9.
  13. The number entered in this cell is the sum of cell #5 and cell #10.
  14. The number entered in this cell is the sum of cell #7 and cell #11.