UNITED WAY OF METROPOLITAN CHICAGO

Transcription

1 UNITED WAY OF METROPOLITAN CHICAGO INCOME ISSUE AREA MEASUREMENT FRAMEWORK JULY 1, 2013-JUNE 30, 2015

2 FINANCIAL CAPABILITY Improve financial management & build savings INCOME MEASUREMENT FRAMEWORK EMPLOYMENT Find jobs & pursue career growth INCOME SUPPORTS Access income supports to make ends meet OUTCOME INDICATORS OUTCOMES INDICATORS OUTCOME INDICATORS Increase financial knowledge gaining financial knowledge establishing financial baseline who achieve financial literacy who become banked Increase employment eligibility who become job ready gaining recognized skills or credentials Access income supports screened for benefit eligibility determined to be eligible for new benefit(s) Improve financial management improving financial position Obtain employment Placement Rate Average Earnings receiving intervention to gain new or maintain benefit(s) who receive new benefit(s) Average savings rate Build savings & assets making sound investments Retain job and advance Retention Rate improving job quality Make ends meet that maintain benefit(s) Tax Prep Only: Return on Investment (ROI)

3 IMPACT AREA: FINANCIAL CAPABILITY OVERALL GOAL: IMPROVE FINANCIAL MANAGEMENT & BUILD SAVINGS OUTCOME Increase Financial Knowledge INDICATOR gaining financial knowledge establishing financial baseline achieving financial literacy DATA REQUIRED # of who gain financial knowledge Denominator: total # of served during the program year # of who establish their financial baseline Denominator: total # of served during the program year # of who achieve financial literacy Denominator: total # of served during the program year DEFINITIONS DATA SOURCES In order to gain financial knowledge a client must attend/complete a module, class, workshop, and/or 1:1 coaching session that fully covers at least one of the five core competency areas: 1. Earning 2. Spending 3. Credit building & borrowing 4. Saving 5. Protecting Note: see attachment A for detail. To establish their financial baseline, each client must successfully complete (with or without help from program staff) all the following three key assessment activities: 1. Identify and document in writing at least one financial goal to achieve in the next year. 2. Fill out a complete baseline budget (see Attachment B for template) 3. Fill out a complete baseline balance sheet (see attachment B for template) To achieve financial literacy must demonstrate completion of courses, modules, workshops, or 1:1 coaching sessions that fully cover all five of the following core competency areas: 6. Earning 7. Spending 8. Credit building & borrowing 9. Saving 10. Protecting Note: see attachment A for detail. Timing: Attendance assessed at each visit, workshop, class, module or coaching session. Agency maintains copy of written curriculum demonstrating that it covers core competencies. Sign-in sheets, case notes to document participation. Timing: Preferably, this baseline should be completed within the first few months of the program. Client self-report, with source documentation when available to document actual income, expenses, assets, liabilities, etc. Important Note: Change can be accomplished through revisions/ updates, but should not be assumed for longer-term clients. Timing: Attendance assessed at each visit, workshop, class, module or coaching session. Agency maintains copy of written curriculum demonstrating that it covers core competencies. Sign-in sheets, case notes to document participation.

4 OVERALL GOAL: IMPROVE FINANCIAL MANAGEMENT & BUILD SAVINGS OUTCOME INDICATOR DATA REQUIRED DEFINITIONS DATA SOURCES Improve Financial Management who become banked during the program year who are who become unbanked. banked improving financial position -total # served during program year -# of carryover clients from last year # of who improve financial position during program year Denominator: total # of served during the program year - # completing each criterion of definition, as applicable -# of clients for whom credit reports are pulled and reviewed A client becomes banked when they: a) open a new checking or savings account at a mainstream financial institution, such as a bank or credit union; and b) use this new account at least monthly for a minimum of 90 days. Unbanked means that the person is not fully participating in the mainstream financial system. Note: During the period of time between when the person opens the account and the 90-day mark, individuals will be counted as opening an account, but not as banked. To improve financial position, clients must show progress at least one of the following: 1. Increase net income (income minus expenses- could be as simple as paying off debts, increasing income at job, etc.) 2. Improve credit score or content of credit report- using same reporting agency to measure over time (fewer delinquencies, more active trade lines, fewer collections/judgments, improved debt to credit ratio, etc.) 3. Increase net worth- A client demonstrates gains in net worth when the value of their assets grows in comparison to their liabilities. Note: See Attachment C for balance sheet template to measure changes in net worth. Timing: Screen for banking use at beginning of program/year and periodically thereafter to determine account status & usage. Client self-report with source docs whenever possible (account ledger, deposit slips, etc.) Timing: Complete baseline budget and/or balance sheet and/or pull credit report at beginning of program/year and periodically to determine change over time. Net income: client self-report with source docs when possible (paystubs, bills, etc.) Credit: credit report as source document Net worth: Complete balance sheet at beginning of program/year and periodically thereafter to determine changes in net worth.

5 IMPACT AREA: FINANCIAL CAPABILITY OVERALL GOAL: IMPROVE FINANCIAL MANAGEMENT & BUILD SAVINGS OUTCOME INDICATOR DATA REQUIRED DEFINITIONS DATA SOURCES Build Savings & Assets Sum of total annual savings for all of the savings program Average savings rate is the savings rate for your agency s program for a single program year. This is calculated by UWMC when your agency enters the sum of your clients savings and the sum of their gross incomes into the online reporting tool. This data yields an average savings rate for your program for the year (sum savings/sum gross income). Average Denominator: Sum savings rate of gross annual income for all of the savings program Gross income includes gross earnings from work, as well as regular income from public benefits, child support, etc. making sound investments making sound investments served during the program year in the savings program. - # completing each criterion of definition, as applicable A participant makes a sound investment when they: 1. Contribute to a long-term savings plan: retirement, child savings account, educational savings account, etc. 2. Make an affordable purchase that improves their family s stability: homeownership, transportation, computer, education, etc. 3. Start or invest in a business after sound financial planning 4. Invest in stocks, bonds, money market, etc. Timing: Assess savings at beginning of program/year and periodically thereafter to capture annual savings estimate. Client self-report with source docs whenever possible (account ledger, deposit slips, etc.) Timing: Assess savings at beginning of program/year and periodically thereafter to capture investments. Client self-report with source docs whenever possible.

6 IMPACT AREA: EMPLOYMENT OVERALL GOAL: FIND JOBS & PURSUE CAREER GROWTH OUTCOME Increase Employment Eligibility INDICATOR who become job ready gaining recognized skills or credentials DATA REQUIRED # of who become job ready Denominator: total # of served during the program year -# of carryover clients from last year # of who gain recognized skills or credentials Denominator: total # of served during the program year - # of gaining skills in each of the areas listed to the right DEFINITIONS In order to be considered job ready, a client must successfully complete the agency s entire job readiness training program. Ideally, programs should incorporate standardized testing for job readiness credential, such as Work Keys, in order to determine if participant has fully incorporated the learning provided from the program. Important Note: Longer-term clients should only be counted the first time that they complete the job readiness training or if additional training components are added at a later date. In order to gain recognized skills or credentials, a client must complete one ore more of the following: 1. Digital literacy training (computer) 2. English as a Second Language training (ESL) 3. Adult Literacy/numeracy training 4. General Education Development (GED) certificate 5. High school diploma 6. Apprenticeship program 7. Occupational skills certification 8. Occupational skills licensure 9. Associates degree- AA, AS (accredited) 10. Bachelor s- BA, BS (accredited) 11. Master s Degree- MA, MS (accredited) DATA SOURCES Timing: Assess at end of program/year and at end to determine completion. Agency case notes, attendance lots, pre- and posttests, completion records, certificates, etc. Timing: Assess at beginning of program/year and periodically to determine change over time. Proof of completiondiplomas, certificates, licenses, etc.

7 IMPACT AREA: EMPLOYMENT OVERALL GOAL: FIND JOBS & PURSUE CAREER GROWTH OUTCOME INDICATOR DATA REQUIRED Obtain Employment Retain Job & Advance Placement Rate Average Earnings Retention Rate # of placed in jobs during the program year served in program that were not employed at program entry or lost their job during the program year Collect hourly earnings data and average across all program Most Programs: retention rate placed during program year who retain their jobs placed during the program year Long-term Support: retention rate continuously employed during the entire current program year clients served in the program during the program year DEFINITIONS In order to be considered placed in a job, a participant must obtain & maintain paid employment at the same job for a minimum of 30 days. Paid employment can include paid internships, subsidized employment, transitional jobs, & part-time work. Earnings at placement is the gross hourly wage earned by at the end of the first month of employment. In order to be retained a client must be continuously employed for 90days, either in the same job, a comparable/better job in the same organization, or another comparable job in the community. Comparable means a similar or better work hours, schedule, wage, benefits, etc. Continuously means working all weeks at least part-time for the 90-day period. Note: this indicator should be used by most programs, unless the vast majority of have specific long-term support needs, as defined below. Continuously employed means that the participant remains either in the same job, a comparable/better job in the same organization, or another comparable job in the community. Note: this option should only be used by programs serving a majority of (>80%) that have long-term support needs meaning require extensive employment supports from the provider agency for 1+ years due to disability status. DATA SOURCES Timing: determine employment status at beginning of program/year and at 30 days of employment. client self-report with source docs whenever possible (employer verification, client pay stubs) Same as above. Timing: determine employment status at beginning of program/year and at 90 days of employment. Same as above. Timing: determine employment status at beginning of program/year and periodically throughout year. Same as above.

8 IMPACT AREA: EMPLOYMENT OVERALL GOAL: FIND JOBS & PURSUE CAREER GROWTH OUTCOME INDICATOR DATA REQUIRED Retain Job & Advance participant s improving job quality served who improve their job quality during the program year served during the program year who have been continuously employed for at least 90 days - # of improving job quality in each of these areas wages, benefits, job security, schedule DEFINITIONS In order to improve job quality, must experience one or more of the following: Increase in wages/earnings Receipt of new/improved employersponsored benefits (vacation/sick time, insurance, 401k, pre-tax transportation, childcare, and medial programs, tuition reimbursement, etc.) Gains in job security: increasing hours, temporary to permanent, off probationary period, join a labor union, etc. Improvements to work schedule: sufficient hours to meet basic needs, predictability of shift, flexibility to promote work-life balance, social connections, etc. Note: improvements in job quality can be made through current job or movement to new/better job, as long as the remains continuously employed for at least 90 days. DATA SOURCES Timing: Assess job quality at placement and periodically throughout year. If only follow for 90 days, then as ask at that time. client self-report with source docs whenever possible (employer verification, client pay stubs)

9 IMPACT AREA: INCOME SUPPORTS OVERALL GOAL: ACCESS INCOME SUPPORTS TO MAKE ENDS MEET OUTCOME INDICATOR DATA REQUIRED DEFINITIONS DATA SOURCES Access Income Supports participant s screened for benefit eligibility participant s determine d to be eligible for new benefit(s) participant s receiving interventio n to gain new or maintain benefit(s) who are screened for public benefit eligibility Denominator: total # of served during the program year. -# of carryover from last year who are determined to be eligible for new benefit(s) Denominator: total # of who completed an eligibility screening who receive intervention to gain new or maintain benefits Denominator: total # of served during program year Participants are screened for benefit eligibility when they receive assistance from a program to complete a screening checklist or tool that includes all of the applicable eligibility criteria for at least one public benefit/income support program. Eligibility is established by published state, federal or local program rules and regulations that govern the operation of the income support program. Public benefits or income supports are used interchangeably and are defined broadly to include any one-time, periodic, or on-going benefit that can be quantified in dollars (TANF, SSI, SNAP, SSDI, housing/childcare subsidies, Medicaid/Medicare, EITC/tax credits, LIHEAP, WIC, utility/emergency cash asst, student financial aid, etc.) Participants are determined to be eligible when an agency verifies that they meet all of the eligibility criteria for at least one public benefit program. A participant receives intervention to gain new or maintain benefit(s) when they are directly assisted by a program, through case management, advocacy, transportation, interpreter services, etc. to gain or maintain benefits. This does not count referrals to another agency to do those things. Timing: Ideally screening should occur at program entry and periodically thereafter to reassess eligibility. Client self-report with source docs whenever possible (proof of income, identity, family size, etc.) Timing: Ideally, should collect and verify eligibility soon after screening process to facilitate rapid uptake of needed benefits. Agency must collect all source documentation to verify eligibility Timing: Service delivery is captured and recorded on an on-going basis case notes, service records, etc

10 IMPACT AREA: INCOME SUPPORTS OVERALL GOAL: ACCESS INCOME SUPPORTS TO MAKE ENDS MEET OUTCOME INDICATOR DATA REQUIRED DEFINITIONS DATA SOURCES Make Ends Meet participant s who receive new benefit(s) participant s that maintain benefit(s) Tax Prep Only: Return on Investment (ROI) who receive at least one new benefit Denominator: total # of who are determined eligible for new benefit. # of new benefits in the categories listed to the right. who maintain all income supports for which they are eligible. who remain eligible for income supports. total amount of tax refunds to Denominator: total cost of Volunteer Income Tax Assistance (VITA) program 1. total # and amount of EITC refunds, 2. total # of volunteers 3.3total # of returns filed A participant receives a new benefit when it is processed and they begin realizing the financial benefit of that income support or benefit. For example, when they receive their first check, housing subsidy, or medical card. UWMC will ask how many people received benefits in these categories: Income: TANF, tax credits, SSI/SSDI, etc. Food: SNAP/LINK, WIC, etc. Housing: subsidized housing (public, Section 8), LIHEAP, weatherization, utility, eviction prevention Transportation: subsidized fare cards, vouchers Childcare subsidies Medical: Medicaid, Medicare, All Kids A participant maintains all income supports for which they are eligible when they are: a) screened at least once a year (ideally comprehensively) for benefit eligibility; and b) they continue to receive the benefit for which they are eligible, ideally without a coverage gap. The return on investment for VITA sites should include the value of the returns and the total cost of the entire VITA program. Timing: verify through follow-up, as soon as possible after receipt of benefit. client self report, ideally with source documentation to verify. Timing: Screen for eligibility and current supports at beginning of program/year. Assess again periodically to determine if stable. Client self-report with source docs whenever possible (case notes, benefit statements, etc.) Timing: collected during tax season Client proof of income, identity, household size, etc.

11 Attachment A: UWMC Core Competencies for Financial Education 1 Core concept Knowledge Action/behavior Earning Gross versus net pay Understand your paycheck. Benefits and taxes Learn about potential benefits and taxes. Education is important Invest in your future. Spending The difference between needs and wants Develop a spending plan. Track spending habits. Live within your means. Understand the social and environmental impacts of your spending decisions. Understand the portion of your budget that comes from fees or elevated interest rate because of either product management or lack of access to fairly priced financial products Credit Building and How to use credit to your advantage a good credit score is increasing used by Avoid high cost borrowing, plan, understand, and shop around. Understand borrowing employers and landlords to screen out how information in your credit score candidates. It s also used by banks, affects your life. Plan for and meet your insurance companies, cell phone and utilities companies, etc to determine rates/terms (more favorable if you have current payment obligations. Track borrowing habits. Analyze renting versus owning a home. good credit). If you borrow, make sure you pay back all active debt on time and that you use no more than 30 your available credit. Keep an eye on your credit score Saving Saved money grows Start saving as soon as you have a balanced budget, and can cover your monthly expenses. Know about transactional accounts (checking) Understand and establish a relationship with the financial system. Know about financial assets (savings Comparison shop. Balance risk and return. Protect accounts, bonds, stocks, mutual funds) How to meet long-term goals and grow your wealth Act now to protect yourself from potential catastrophe later Identity theft/fraud/scams Save for retirement, child's education, and other needs. Plan for long-term goals. Track savings and monitor what you own. Choose appropriate insurance. Build up an emergency fund. Shop around. Protect your identity. Avoid fraud and scams. Review your credit report. 1 Core competencies based on US Dept of Treasury Core Competencies and with input from Local Initiatives Support Corporation (LISC) of Chicago from their experience implementing the Centers for Working Families.

12 Attachment B: UWMC Financial Capability Budget Template 2 Participant Name: Date completed/updated: We are about to create a budget. Do you want it to reflect just your own finances, or the finances of your whole household? (Note to : please make sure all of your answers stay consistent with your response to this question.) MONTHLY INCOME Wages (after tax) Income from self-employment or business ownership SSI/SSDI Food Stamps/WIC Other Public Benefits Alimony/Child Support Unemployment MONTHLY EXPENSES Rent, Taxes & Home Maintenance Rent Renter's Insurance Mortgage 1 - Primary Residence Mortgage 2, 3, etc. - Primary Residence (combined) HELOC(s) - Primary Residence Homeowner's Insurance Utilities Gas/Heating Electric Water Trash Sewer Phone (landline) Cell phone Other (note: cable and internet go in Personal Expense) Transportation Vehicle 1 Payment Vehicle 2 Payment Vehicle 3 Payment Gas Car Insurance Car Maintenance Public Transportation Other Child/Dependent Related Childcare/Daycare Child Support (paid) Education (for children/dependents) - tuition, books, etc. Other Budget reflects participant only Real Estate - other than Primary Residence Property tax Home Maintencance Other Worker's Compensation Veteran's Compensation Rental income Income from other household members Interest/Investment Income Other Income Total Monthly Income Health-Related If not deducted from paycheck, Health Insurance If not deducted from paycheck, Dental Insurance Life Insurance (pro-rate if not paid monthly) Monthly Medical & Prescription Bills Other Credit Card/Loan Payments Revolving Credit Cards Student Loans Consumer Loans - Active Informal Loans - family, friends, etc. Business Loans Food Groceries Other Food (dining out, school lunch, etc.) Personal Expenses Cable/Internet Laundry/Dry Cleaning Tobacco & Alcohol Clothing &Accessories Hair Products/Toiletries Beauty Salon/Barber Shop Recreation (movies, CD's, vacation, etc.) Other Miscellaneous Expenses Charitable Giving Gifts to Others Newspapers/Magazines Pet Care Allowances for Children/Dependents Membership Dues ( health club, licenses, etc.) Education (not student loan repayment) Financial Fees Budget reflects whole household Other Total Monthly Expenses MONTHLY NET INCOME Total Monthly Net Income Monthly Savings Target 2 Budget template provided by LISC Chicago for use across UWMC FS cohort.

13 Attachment C: UWMC Financial Capability Balance Sheet Template 3 Participant Name: Date completed/updated: We are about to create a balance sheet. Do you want it to reflect just your own finances, or the finances of your whole household? (Note to : please make sure all of your answers stay consistent with your response to this question.) Balance Sheet reflects participant only Balance Sheet reflects whole household ASSETS Checking Account(s) (total balance) Savings Account(s) (total balance) Cash - not in any type of account (total balance) Vehicle 1 (market value) Vehicle 2 (market value) Vehicle 3, 4, 5 etc. (combined market value) Primary Residence (market value) Real Estate - other than Primary Residence (market value) Other Investments/Assets - Stocks/Bonds/Mutual Funds/IRA/Retirement Accounts, etc. (total value) College Savings Account (529 or other) (total value) Business (estimated market value) TOTAL ASSETS LIABILITIES Housing Mortgage(s) - Primary Residence (combined loan balance) Home Equity Lines of Credit - Primary Residence (portion used) Real Estate - other than Primary Residence (combined loan balance) Transportation Vehicle 1 (loan balance) Vehicle 2 (loan balance) Vehicle 3, Vehicle 4, etc.(combined loan balance) Credit Cards / Other Loan Balances Credit Card(s) (combined account balances) Student Loans(s) (total balance) Consumer Loans(s) (total balance) Business Loan(s) (total balance) Informal Loan(s) - money owed to family, friends, etc. (total balance) Unpaid Bills (not in collections) Unpaid Utilities (total balance) Unpaid Rent (total balance) Unpaid Medical Bills (total balance) Total Housing Total Transportation Total Credit Cards/Other Loan Balances Money owed to banks and/or credit unions, i.e. bank overdrafts, bounced checks (total balance) Other (total balance) Collections/Judgments Medical Collections only (total balance) All Other Collections (total balance) Child Support in Arrears (total balance) Back Taxes Owed (total balance) Other Public Records (not including Child Support Arrears and Back Taxes) TOTAL LIABILITIES NET WORTH Total Assets Total Liabilities TOTAL NET WORTH Total Unpaid Bills (not in collections) Total Collections/Judgments 3 Balance sheet template provided by LISC Chicago for use across UWMC FS cohort.