; (B) to supplement, and not supplant, the compensation of those existing employees of the entity who are directly supporting a returnship program through the work described in paragraph (1)(B); and (C) to enter into an arrangement with an eligible provider to carry out a returnship program. (3) Existing employees Not more than 20 percent of the grant funds may be used to provide compensation for the existing employees performing the work described in paragraph (1)(B). (4) Coordination with State workforce boards An entity that receives a grant under this section shall coordinate activities with the State workforce development board established under section 101, to ensure collaboration and alignment of workforce programs. (h) Reporting and evaluation requirements (1) Report to the secretary An entity that receives a grant under this section for a returnship program shall prepare, certify the contents of, and submit to the Secretary an annual report containing data regarding— (A) the total number of the participants, and the number of such participants dis­ag­gre­gat­ed by sex, race, and ethnicity; (B) the total number of the participants transitioned into full-time employment, and the number of such transitioned participants dis­ag­gre­gat­ed by sex, race, and ethnicity; and (C) if the returnship program includes participants in an internship, the conversion rate of the internship participants to employees, for the total number of those participants and the conversion rate of those participants dis­ag­gre­gat­ed by sex, race, and ethnicity. (2) Evaluation and report by the secretary Not later than 180 days after receiving the annual reports from grant recipients under paragraph (1), the Secretary shall— (A) (i) prepare a report that presents the data collected through the reports, including data disaggregated by sex, race, and ethnicity, and an evaluation based on that data of the best practices for effectively implementing returnship (including internship) programs