** Archive **
WIAPL 09-01.3 (Waiver to Increase the Transfer of Funds between the Adult and Dislocated Worker Local Formula Funds)
Workforce Investment Act Policy Letter No. 09-01.3
August 23, 2011
TO: Workforce Investment Act (WIA) Local Workforce Investment Boards (WIBs), Fiscal Agents, Administrative Entities, and One-Stop Operators
FROM: Christiane Schmenk, Director Michael B. Colbert, Director
SUBJECT: Waiver to Increase the Transfer of Funds between the Adult and Dislocated Worker Local Formula Funds

I.Purpose

To provide policy on the waiver extension granted for Program Year 2011 by the US Department of Labor (DOL) to increase the allowable transfer amount between Adult and Dislocated Worker funding streams allocated to a local area. The transfer authority between the funding streams is limited to 50%. WIA administrative entities should transmit this guidance to subrecipients and other entities that provide WIA activities.

II.Effective Date

July 1, 2011 - June 30, 2012

III.Background

Under the Workforce Investment Act, Public Law 105-220, dated August 7, 1998, Section 133 (b) (4) allows the local Workforce Investment Board (WIB), through the administrative entity and/or fiscal agent, to request a transfer of funds between the adult and dislocated worker programs of up to 20% of the original formula allocation for each year of appropriation. TEGL 20-08, May 7, 2009 raises the transfer limits to 30%, which is applicable for the life of the funds.

In April 2011, the State requested a waiver extension to permit an increase in the allowable transfer amount between the Adult and Dislocated Worker funding streams. On June 7, 2011, the U.S. Department of Labor granted the extension of this waiver for Program Year (PY) 2011. An extension of this waiver has been granted through June 30, 2012 by DOL.

IV.Requirements

Effective with the issuance of PY 2011 WIA funds, the state of Ohio is aligning with the Consolidated Appropriations Act, limiting the transfer amount of up to 50% of Dislocated Worker funds to Adult and up to 50% of Adult funds to Dislocated Worker.

A WIB cannot transfer youth funds under the Workforce Investment Act.

A WIB should instruct the fiscal agent and/or the administrative entity whether to transfer up to 50% of local area formula allocations between the adult and dislocated worker programs.

Funds will retain the year of appropriation identity and must be reported and accounted for accordingly using County Finance Information System (CFIS) codes established by the Bureau of County Finance and Technical Assistance (BCFTA).

Funds should not be transferred from the dislocated worker program to the adult program without regard to demands for dislocated worker services. The state may not provide rapid response funds to address a need if a transfer has occurred from the dislocated worker program to the adult program.

Considerations

There are short-term and long-term effects on program operations that could result from transfers of funds. The local WIB, the fiscal agent, and/or the administrative entity should examine the following considerations when deciding to transfer:

1.Are there adequate funds to maintain services to currently enrolled participants?

2.What is prompting the request?

  • Customer demand
  • Business demand
  • Expenditures
  • Enrollments

3.How will you respond to unforeseen events, such as:

  • Company closings
  • Mass layoffs
  • Increased training costs

4.What are short-term and long-term impacts of the transfer?

  • Significant change in local plan goals to warrant a local plan modification
  • Service level and service groups

V.Technical Assistance

For additional information, you may send your questions to the Office of Workforce Development: WIAQNA@JFS.OHIO.GOV.

VI.References

Workforce Investment Act (WIA) of 1998, Public Law 105-220, August 7, 1998, Sections 133 (a) (B) (2) and 133(b) (4), 189 (i) (4) (B)

Federal Regulation, Final Rules, August 11, 2000, 20 CFR Sections 661.420 (c) and 667.140;

DOL Training and Employment Guidance Letter No. 20-08, May 7, 2009;

DOL Training and Employment Guidance Letter No. 23-07, March 25, 2008;

The Consolidated Appropriations Act, 2008

Waiver Request Plan, May 9, 2005; and U.S. DOL waiver approval letter, July 25, 2005

Waiver Request Plan, May 9, 2007; and USDOL waiver approval letter, Sept. 26, 2007

OAC 5101:9-31-02, WIA Initial Formulary Allocation Methodology

Waiver Request Plan, May 13, 2010; and

DOL waiver approval letter, June 30, 2010

DOL waiver approval letter, June 7, 2011

Rescissions

WIATL 21A- Waiver to Increase the Percentage on Transfer of Funds between the Adult and Dislocated Worker Programs

WIAPL No. 09-01

WIAPL No. 09-01.1

WIAPL No. 09-01.2