WIOAPL 19-02 (Voluntary Transfer of WIOA Funds)
Workforce Innovation and Opportunity Act Policy Letter No. 19-02
April 7, 2020
TO: Local Workforce Development Boards Directors, Fiscal Agents, and OhioMeansJobs Center Operators
FROM: Kimberly Hall, Director
SUBJECT: Voluntary Transfer of WIOA Funds

I.Purpose

The purpose of this policy is to provide guidance and parameters for the voluntary transfers of Workforce Innovation and Opportunity Act (WIOA) funds between local workforce development areas (local areas).

II.Effective Date

Immediately

III.Background

Local areas may negotiate a voluntary transfer of carry-in (funds due to expire on June 30th of the current fiscal year) WIOA Title I adult, dislocated worker and youth funds with the approval of the chief elected official(s), workforce development board(WDB) director, WDB chairman and the fiscal agent of both local areas, in concurrence with the Office of Workforce Development(OWD).

IV.Local Workforce Development Area Requirements

A local area may voluntarily de-obligate funds from WIOA Title I adult, dislocated worker and youth funds and request the funds be transferred to another designated local area. These transfer requests must be submitted by May 30th of the current fiscal year. Funds must be transferred within a single funding category and administration funds may not be transferred between local areas.

A.Donor Local Area Requirements

Donor local areas must ensure that:

1.The amount of funds available to be drawn down is greater than the amount of the proposed transfer.

2.The amount of the transfer does not reduce the fund availability below actual expenditures, accruals and obligations.

B.Local Area Eligibility to Receive WIOA Funds

To be eligible to receive adult, dislocated worker or youth funds under the voluntary transfer procedures, a recipient local area must have obligated 100 percent of the second-year allocation, less amount reserved (up to 10 percent) for the cost of administration for the program in which they would like to receive funding.

This eligibility will be determined separately for all three funding streams. Any local area that failed to obligate 100 percent of its second-year funds will not be eligible to receive funds as the result of voluntary transfer.

In order to receive funds, local areas must maintain auditable records and have sustained fiscal integrity per section 107 (c)(2)(B) of WIOA.

C.Expenditure Considerations

Transfers involving WIOA Youth funds retain the following:

1.75 percent required expenditure minimum for out-of-school youth

2.20 percent required expenditure minimum to provide in-school and out-of-school youth with paid and unpaid work experiences.

Each minimum is calculated on the increased funding level for the recipient local area and the reduced funding level of the donor local area.

Transfers involving WIOA adult and dislocated worker funds retain the following:

1.20 percent expenditure maximum for incumbent worker training.

2.10 percent expenditure maximum for transitional jobs.

Each maximum is calculated on the increased funding level for the recipient local area and the reduced funding level of the donor local area.

D.Request for Transfer

The local area releasing funds and the local area receiving funds must make a written request to the state for approval of transfers.

The requests must specify the following:

1.Name of local area releasing funds;

2.Name of local area receiving funds;

3.Program year;

4.Type of funding (whether adult, dislocated worker or youth);

5.Amount of transfer;

6.Signatures from the CEO(s), WDB director, WDB chairman and fiscal agent of both local areas.

All transfer requests must be made in writing and submitted to OWDPOLICY@JFS.OHIO.GOV. Requests must be made prior to May 30th of the current year.

All requests must have the approval of the CEO(s), WDB director, WDB chairman and fiscal agent of both local areas.

V.State Requirements

All transfer request forms will be reviewed for approval by OWD. OWD will respond to all requests within three working days of receipt of the transfer request.

For those requests that are approved, OWD will provide written notification of the approval. It will then be forwarded to the Office of Fiscal and Monitoring Services (OFMS) to initiate the fund transfer request. Notice of awards will be issued to both local areas.

For requests that are denied, OWD will inform both the donor and receiving local areas of the denial in writing.

VI.Monitoring

At the local level, the WDB and/or the fiscal agent must conduct oversight of the transfer of WIOA adult, dislocated worker and youth funds to ensure the transfer is being completed per this policy.

Through the state's monitoring system, fiscal monitors will review the area's transfer of WIOA adult, dislocated worker and youth funds during the annual onsite monitoring review for compliance with federal and state laws and regulations. Any issues will be handled through the state's monitoring resolution process.

VII.Technical Assistance

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

VIII.  References

20 CFR § 683.140

Workforce Innovation and Opportunity Act, §§ 106 – 107, Public Law 113-128