Chapter 5101:9-31 Workforce Investment Act (WIA) Allocations

[This rule designated an internal management rule]

(A) The following definitions are applicable to this rule:

(1) “Local area” means the subrecipient responsible for administering WIA. Local area is further defined in Workforce Investment Act (WIA) section 116 as designated by the governor.

(2) “Recipient” means the Ohio department of job and family services (ODJFS).

(3) “Subrecipient” means local area.

(4) “Agreement” means contract, subgrant agreement, memorandum of understanding (MOU), and/or interagency agreement.

(5) “Financial assistance” means all cash, reimbursements, allocations of funds, and cash draws provided by ODJFS to a local area. All requirements related to financial assistance shall also apply to public money, as defined in section 117(c)(1)(B) of WIA, used by the county to match state or federal funds.

(6) “Chief local elected officials,” when used in reference to a local area, means the chief elected executive officer of a unit of general local government in a local area; and in a case in which a local area includes more than one unit of general local government, the individuals designated under the agreement described in section 117(c)(1)(B) of WIA.

(B) The subrecipient shall comply with all WIA provisions and all federal regulations, including 29 C.F.R. part 652 (WIA regulations) promulgated by the U.S. DOL and any amendments thereto.

(C) The subgrantee shall ensure the funds included in the subgrant agreement are used and the workforce development duties included in the agreement are performed in accordance with the following:

(1) The conditions, requirements, and restrictions established by ODJFS including the ODJFS allocation notice/letter.

(2) State and federal laws and regulations.

(3) The state plan for receipt of federal financial participation.

(4) The terms and conditions of the grant award.

(5) Applicable grant agreements between ODJFS and federal agencies.

(6) Applicable executive orders.

(7) U.S. DOL guidance.

(D) The subrecipient shall develop a local WIA plan that is in compliance with section 118 of WIA, 29 U.S.C 2833. The subrecipient must submit the local WIA plan to the recipient and receive approval from the recipient before receiving WIA funds. The subrecipient may only expend WIA funds on activities and in a manner consistent with the approved WIA local plan and subgrant agreement.

(E) The subrecipient shall comply with the administrative requirements and procedures established under OMB Circular A-102 as codified in 29 C.F.R. part 97; and OMB circulars A-87, A-122, A-128, A-133, A-21 and A-110, as applicable; as they relate to the application, acceptance, audit, and use of federal funds, except where such administrative requirements and procedures have been superseded or augmented by WIA, state law, local regulations and laws, or other federal law.

(F) The subrecipient must assure that a resolution, motion, or similar action has been duly adopted or passed as an official act of the subrecipient’s governing body directing and authorizing the person identified as the official representative of the subrecipient to act in compliance with this rule and to provide such additional information as may be required to bind the subrecipient to future agreements, provisions, and/or conditions relating to the use of WIA funds during the course of a program year.

(G) The subrecipient shall be responsible for all WIA funds received and shall be responsible for the associated actions. The subrecipient shall establish such management and fiscal controls and reports as are necessary to maintain effective controls and safeguards to prevent abuses or misuse of funds and be in compliance with the subrecipient monitoring rule 5101:9-1-88 of the Administrative Code and prevent any misuse of funds by any entity with whom it subcontracts. All provider subcontracts entered into by the subrecipient are subject to review and shall be made available upon request by the recipient.

(H) The subrecipient shall ensure that every officer, director, or agent or employee authorized to act on behalf of the subrecipient in receiving or depositing funds into program accounts, or in issuing financial documents, checks, or other instruments of payment for payment for program costs shall be bonded to provide adequate protection against loss.

(I) The subrecipient shall establish and maintain separate accounting records for the management of the WIA funds in accordance with the rules of funding for WIA.

(J) The subrecipient shall administer procurement systems for all goods and services as outlined in rule 5101:9-4-07 of the Administrative Code that comply with applicable state, federal, and local law, rules, and regulations.

(K) As defined in 2 C.F.R. part 225, the subrecipient shall not purchase non-expendable personal property or equipment for administrative and/or programmatic purposes with federal funds without written approval from the recipient if the purchase exceeds five thousand dollars. Purchase of real property or new construction is prohibited. The subrecipient shall not loan any WIA funds.

(L) The subrecipient shall ensure prompt payment relating to employment including, but not limited to, unemployment compensation contributions or reimbursements, insurance premiums, workers’ compensation premiums, all income tax deductions, social security deductions, public employment retirement system contributions, and any and all other employer taxes and payroll deductions required by law or contract for all employees, trainees, work experience participants, and anyone receiving monetary benefits as a result of participation in workforce investment programs.

(M) The subrecipient may be reimbursed for necessary and reasonable indirect costs if:

(1) The local area is included in a county-wide central cost allocation plan developed and maintained by the board of county commissioners (BOCC).

(2) In the case of all other local areas, no indirect cost may be charged without the submission of documents that evidence that the subrecipient has obtained prior approval of an indirect cost allocation plan from a federal agency from which the subrecipient is receiving funds and that has been assigned responsibility by the U.S. office of management and budget (OMB) for approving the subrecipient’s indirect cost proposal. The subrecipients without a federal cognizant agency must receive approval of an indirect cost allocation plan from the recipient before charging indirect costs.

(N) The subrecipient must require its appointed fiscal agent to use a unified financial reporting system as set forth in 20 C.F.R. 667.300(b) as follows:

(1) Unless the local area performs only administrative functions, fiscal agents are required to install and implement the use of the random moment sample (RMS) system for reporting activities in compliance with 2 C.F.R. part 225 and the recipient’s approved U.S. department of health and human services (DHHS) cost allocation plan. All WIA stand alone areas shall allocate their costs in accordance with ODJFS fiscal policy.

(2) Fiscal agents are required to install and implement the use of the quarterly information consolidation “QuIC+” system and other financial systems required for the recording and reporting financial statements, cash draws, and participant information to the respective recipient bureau.

(3) Fiscal agents are required to have a written plan identifying how financial records have been maintained for audit.

(O) The subrecipient shall make available for examination all of its records with respect to all matters covered by this rule during normal business hours and as often as the recipient, the U.S. comptroller general, ODJFS, and the auditor of the state of Ohio may deem necessary. The recipient U.S. DOL, ODJFS and the auditor of the state of Ohio, or any of their assignees, shall have the authority to audit, examine, and make excerpts or transcripts from records, including all contracts, invoices, materials, payrolls, records of personnel, conditions of employment, and other data relating to all matter covered by this agreement. In addition, the following conditions shall apply:

(1) The recipient shall have the authority to examine all records of the subrecipient. Should records not meet the standards established by the general accepted accounting practices, recipient reserves the right to withhold any or all of its funding to the subrecipient until such time as they do meet these standards.

(2) The recipient shall have the authority to examine all forms and documents used, including, but not limited to, purchase orders, supply requisitions, invoices, journal vouchers, travel vouchers, payroll checks, and other checks used by the subrecipient.

(3) The recipient may require the subrecipient to use any or all of the recipient’s accounting or administrative procedures used in the planning, controlling, monitoring, procurement, and reporting of all fiscal matters.

(4) The recipient reserves the right to dispatch auditors of its choosing to any site where any phase of the program is being conducted, controlled, or advanced in any way, tangible or intangible. Such sites may include the home office, any branch office or other locations of the subrecipient if such sites or the activities performed thereon have any relationship to the WIA program.

(5) The recipient shall have the authority to make physical inspections and to require such physical safeguarding devices as locks, alarms, safes, fire extinguishers, etc., to safeguard property and/or equipment.

(6) The recipient shall have the right to be present at any and all of the subrecipient’s staff meetings, board of directors meetings, advisory committee meetings, and advisory board meetings if an item to be discussed relates to the operation of the local area.

(P) The subrecipient shall retain all records in accordance with rule 5101:9-9-21 of the Administrative Code pertaining to this program for at least a period of three years or longer as required by local, state, and federal laws.

(Q) The subrecipient hereby agrees that in administering its local area, it will comply with the standards of conduct for maintaining the integrity of the project and avoiding any conflict of interest in its administration including, but not limited to, 29 U.S.C 2832(g) and Ohio ethics law . Every reasonable course of action will be taken by the subrecipient in order to maintain the integrity of these expenditures of public funds and to avoid any favoritism or questionable or improper conduct. The local area will be administered in an impartial manner, free from personal, financial, or political gain. The subrecipient, its executive staff and employees, in administering this subgrant, will avoid situations that give rise to a suggestion that any decision was influenced by prejudice, bias, special interest, or personal gain.

(R) Members of the subrecipient who are an executive agency lobbyist or employ one must be registered and otherwise complied with sections 121.60 to 121.69 of the Revised Code.

(S) In the event that the federal government, directly or through its agencies, requires the recipient to repay funds because of misfeasance, malfeasance, or nonfeasance by the subrecipient, the subrecipient shall be liable for any such funds that the federal government has ordered repaid. Disputes between ODJFS and the subrecipient shall be resolved according to section 5101.24 of the Revised Code. The subrecipient is the responsible entity for purposes of applying section 5101.24 of the Revised Code.

(T) The subrecipient shall be in compliance with all regulations, requirements, and obligations of the subgrant agreement between ODJFS and the local area.

(U) All actions of the subrecipient shall be in compliance with the subgrant agreement ethics laws as cited in the subgrant agreement in paragraph (B)(2) of this rule.

Effective: 07/27/2009

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03

Prior Effective Dates: 7/13/2003

[This rule designated an internal management rule]

(A) The Workforce Investment Act (WIA) allocation distribution provides funding for workforce development activities related to youth, adults, dislocated workers, rapid response and other grants related to Native Americans, migrant and seasonal farm workers, veterans, technical assistance, and national emergency grants. These allocations provide funds to WIA areas to assist in the delivery of allowable services.

The requirements and allowable expenditures found in this rule apply only to the formulary allocations and waivers approved by the United States department of labor (DOL). They are not applicable to other funding streams, including, but not limited to, those found in the American Recovery and Reinvestment Act of 2009.

(B) These allocations are composed of one hundred per cent federal funds. Should the state receive a rescission of funds from the DOL, the state will determine the level of adjustments needed to comply with the rescission.

(C) Funds are authorized for expenditure through a grant agreement entered into on a WIA program year (PY) and/or a federal fiscal year (FFY) basis. PY funds are available for expenditure on July first. FFY funds are available for expenditure on October first. At the state level, funds are available for expenditure during the current PY and the two succeeding PYs. For WIA areas, funds are available for the original year of appropriation plus one succeeding year.

(D) Pursuant to section 111 of the Workforce Investment Act of 1998, Ohio will use the formula defined in the Workforce Investment Act of 1998, and in accordance with the state workforce policy board, Ohio’s state plan, and the governor, for WIA allocation methodology for WIA Title I programs. Effective at the end of the second full FFY after the date on which a WIA area is designated under section 116 of the Workforce Investment Act of 1998, the WIA area shall not receive an allocation percentage for an FFY that is less than ninety per cent of the average allocation percentage of the WIA area for the two preceding FFYs. Amounts necessary for increasing such allocations to local areas to comply with the preceding sentence shall be obtained by proportionately reducing the allocations to be made to other WIA areas under this paragraph. Funds are allocated on the basis of a formula prescribed by the governor that distributes funds in a manner that addresses the state’s worker readjustment assistance needs. Funding streams will be allocated according to the following:

(1) Youth funding stream:

(a) One-third of the funds shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each WIA area compared to the total number of unemployed individuals in areas of substantial unemployment in the state.

(b) One-third of the funds shall be allotted on the basis of the relative excess number of unemployed individuals in each WIA area compared to the total excess number of unemployed individuals in the state.

(c) One-third of the funds shall be allotted on the basis of the relative number of disadvantaged youth in each WIA area compared to the total number of disadvantaged youth in the state.

(d) With regard to the youth discretionary allocation, in lieu of making the allocation, the state may distribute:

(i) A portion equal to not less than seventy per cent of the funds.

(ii) The remaining portion of the funds on the basis of a formula that:

(a) Incorporates additional factors including:

(i) Excess youth poverty in urban, rural, and suburban WIA areas; and

(ii) Excess unemployment above the state average in urban, rural, and suburban WIA areas.

(b) Was developed by the state board and approved by the DOL secretary as part of the state plan.

(e) Entered into on a PY basis only each year.

(f) The catalog of federal domestic assistance (CFDA) number for this funding stream is 17.259.

(2) Adult funding stream:

(a) One-third of the funds shall be allotted on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each WIA area, compared to the total number of unemployed individuals in areas of substantial unemployment in the state.

(b) One-third of the funds shall be allotted on the basis of the relative excess number of unemployed individuals in each WIA area compared to the total excess number of unemployed individuals in the state.

(c) One-third of the funds shall be allotted on the basis of the relative number of disadvantaged adults in each workforce investment WIA area compared to the total number of disadvantaged adults in the state.

(d) Entered into on a PY and an FFY basis each year.

(e) The CFDA number for this funding stream is 17.258.

(3) Dislocated worker funding stream:

(a) Funds are allocated on the basis of a formula prescribed by the governor as designated in the state plan with the assistance of the state board.

(b) The dislocated worker formula will use federal and/or state data, including, but not limited to:

(i) Insured unemployment data;

(ii) Unemployment concentrations;

(iii) Plant closings and mass layoff data;

(iv) Declining industries data;

(v) Farmer-rancher economic hardship data;

(vi) Long term unemployment data; and

(vii) Other factors as may be determined by the governor.

(c) Twenty-five per cent of the funds available in the state’s dislocated worker funding stream may be reserved for statewide rapid response activities.

(d) Entered into on a PY and an FFY basis each year.

(e) The CFDA number for this funding stream is 17.260.

(4) Adult, dislocated worker, and youth funding streams:

(a) The governor may set aside up to fifteen per cent of the funds from each funding stream for statewide activities, including five per cent for administrative activities. Neither the funds set aside for statewide activities nor the funds set aside for administrative activities need to be allocated back to the individual funding streams.

(b) The remaining funds must be allocated to local areas in accordance with 20 C.F.R. 667.130.

(c) The allocation factors for adult activity funds are in accordance with 20 C.F.R. 667.130(d) and further defined by the governor and the state board.

(d) The allocation factors for dislocated worker program funds are at 20 C.F.R. 667.130(e) and further defined by the governor and state board.

(e) The allocation formulas for distribution of youth activity funds are at 20 C.F.R. 667.130(c).

(f) Limitation – of the amounts allocated to a WIA area, not more than ten per cent of the amount may be used by the local board for the administrative cost of carrying out WIA activities. Local administrative costs need not be allocated back to the individual funding streams.

(5) The formula allocations are available to local areas for up to two years. The unspent balance from the first year is carried forward into the second. After the end of the second fiscal year, funds are expired at the local level and returned to ODJFS.

(a) A local WIA area may transfer funds back to the youth, adult, and dislocated worker funds in accordance with the office of workforce development (OWD) program policy.

(b) A local WIA area may transfer a percentage of local WIA area funding between the adult and dislocated worker programs, using the CFIS transfer coding established by ODJFS for this purpose.

(i) Effective with the PY 2009 funding, local WIA areas may code a portion equal to or less than thirty per cent of their allocated WIA adult grant for expenditures that are allowable under the WIA dislocated worker grant.

(ii) Effective with the PY 2009 funding, local WIA areas may code a portion equal to or less than thirty per cent of their allocated WIA dislocated worker grant for expenditures that are allowable under the WIA adult grant.

(6) For the first two fiscal years after the date on which a WIA area is designated under section 116 of the Workforce Investment Act of 1998, Ohio may elect to apply the “hold harmless” provisions specified in 20 C.F.R. 667.135.

(7) Effective at the end of the second full fiscal year after the date on which a WIA area is designated under section 116 of the Workforce Investment Act of 1998, the WIA area shall not receive an allocation percentage for a fiscal year that is less than ninety per cent of the average allocation percentage of the WIA area for the two preceding fiscal years. Amounts necessary for increasing such allocations to WIA areas to meet compliance with the language in this paragraph shall be obtained by ratably reducing the allocations to other WIA areas.

(8) There are no “hold harmless” provisions that apply to local WIA areas allocations of dislocated worker funds.

(9) Funding streams must be maintained separately by WIA areas.

(10) OWD may advise, each new PY, which funds to carry forward. The carry-forward funds are the original allocation minus the cumulative expenses. Distribution of these carry-forward funds is fifty per cent of the prior fiscal year’s remaining pre-closeout allocation with the remaining fifty per cent of funds applied after an area’s closeout is finalized. All funding is subject to OWD policy regarding expenditure rates and recapture of unused funds.

(E) Allowable expenditures for these allocations include:

(1) Core services – eligibility determination, outreach, intake, worker profiling, orientation to information and services available, initial assessments, job search and placement assistance, career counseling, provision of employment statistics, labor market information, performance measure information, other information for employment and training purposes, assistance to establishing eligibility for welfare to work, social security, and follow-up services.

(2) Intensive services – comprehensive and specialized assessments, out-of-area job search, job search assistance, literacy activities related to basic workforce readiness, relocation assistance, internships, and work experience.

(3) Training services – occupational skills training, on-the-job training, programs that include cooperative education, training programs operated by private sector/industry, skill upgrading and retraining, entrepreneurial training, job readiness training, adult education and literacy activities provided in combination with these services, and customized training conducted with the commitment by an employer to hire upon successful completion in accordance with the language contained within the OWD program policy.

(4) Youth services – tutoring, study skills training, instruction leading to secondary school completion, drop-out prevention and attrition, alternative secondary school services, summer employment opportunities, supportive services, adult mentoring, follow-up services (twelve months) and counseling.

(5) Administrative funds may be used for the administrative cost of any of the local WIA activities described in section 129(c), 134(d), or 134(e) of the Workforce Investment Act of 1998, regardless of whether the funds were allocated under section 133(b) of the Workforce Investment Act of 1998.

(6) Incumbent worker training services as defined by the Workforce Investment Act of 1998, policy, guidance, or directive.

(F) Allowable expenditures must comply with all requirements of the state and WIA area subgrant agreement, incorporated assurances, certifications, and 29 C.F.R. part 97.

(G) Allocated funds may not be used on construction or purchase of facilities or buildings.

Effective: 07/13/2009

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03

Prior Effective Dates: 7/2/02 (Emer), 9/28/02, 4/15/07

Rescinded eff 12-15-06

[This rule designated an internal management rule. For a copy of this rule, contact the Ohio Legislative Service Commission.]

(A) In administering the Workforce Investment Act (WIA) of 1998, 112 Stat. 936, 29 U.S.C.A. 2801, as amended, the Wagner-Peyser Act, 48 Stat. 113 (1933), 29 U.S.C.A. 49, as amended, the funds received pursuant to those acts, and the workforce development system, the director of the department of job and family services may make allocations and payment of funds for the local administration of workforce development activities established under Chapter 6301. of the Revised Code. The governor is authorized by the WIA of 1998, to reserve not more than fifteen per cent of the amounts allocated to the state under Title I of that act for adults, dislocated workers, and youth for statewide activities, and not more than twenty-five per cent of funds allocated for dislocated workers under Title I of that act for statewide rapid response activities.

(B) The director shall allocate to local areas all funds required to be allocated to local areas pursuant to the WIA of 1998. The director shall make allocations only with funds available on July first (state fiscal year) and October first (federal fiscal year). Program year (PY) funding allocations will be made available on July first and fiscal year (FY) funding allocations will be made available on October first annually.

(C) Local areas, as defined by either section 101 of the WIA of 1998,112 Stat. 936, 29 U.S.C.A. 2801, as amended, or section 6301.01 of the Revised Code, and subrecipients of a local area are required by section 6301.03 of the Revised Code to establish a workforce development fund, and the entity receiving funds is required to deposit all funds received under section 6301.03 of the Revised Code into the workforce development fund. All expenditures for activities funded under section 6301.03 of the Revised Code are required by that section to be made from the workforce development fund. Local workforce investment areas and subareas are required to record and report interest as earned income to the appropriate WIA program by program and fiscal year. Earned interest can only be used for workforce development fund activities and expenditures and must be held in the local account.

(D) WIA funding will be made available to a local workforce investment area through the area’s designated fiscal agent. WIA funding will be receipted by the designated fiscal agent in the workforce development fund and may only be used for allowable activities for adult, youth, and dislocated worker programs. Expenditures and receipts in the workforce development fund will be reported monthly on the JFS 01992, “Workforce Investment Act Fund Certification Sheet.” This report is due to the ODJFS on the twentieth of the following month.

(E) Direct administration of costs allocation by staff at a county department of job and family services (CDJFS) for WIA programs will take place through local agency staff participation in the random moment sample (RMS) time study as detailed in rules 5101:9-1-04, 5101:9-7-20, and 5101:9-31-01 of the Administrative code. Costs associated with providing direct service by the CDJFS shall be derived through staff participating in the quarterly income maintenance (IM) or social service (SS) RMS time study. The CDJFS will ensure the IM and SS RMS allocate cost pools within the public assistance (PA) fund. The CDJFS will administer costs allocated to WIA funds, as expenditures captured within the PA fund, based on the RMS, and will be transferred to the workforce development fund through a data subset transfer in the central office reporting (CORe) system. This transfer will occur at least once a quarter to ensure expenditures are recorded within the workforce development fund against WIA allocations. Reimbursement of WIA expenditures will only occur based on expenditures recorded within the workforce development fund.

(F) If a local workforce investment area board designates an agency other than a county department of job and family services as the administrative and fiscal agent, costs derived for administration and operation of these programs shall be through the RMS time study. Staff will participate in the WIA RMS time study from which results will be used to distribute costs in the WIA cost pool to the appropriate WIA program.

Effective: 06/15/2006

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.01, 6301.03

(A) Effective in state fiscal year (SFY) 2005, for county departments of job and family services providing workforce development activities under the Workforce Investment Act (WIA), the total amount of shared costs allocated to workforce investment act programs by full-time equivalents and random moment sample time studies will not be charged to the WIA administration allocation. These shared costs will instead be charged to WIA programs that include adult, dislocated worker, and youth programs.

(B) County departments of job and family services shall make an adjustment in the WIA data subset only after the public assistance data subset transfer to the WIA data subset has occurred at the local level transferring costs from the adult, dislocated worker, and youth WIA program to the WIA administration based on an appropriately calculated level of administrative costs based on the federal definition of administration for the WIA program as found in 20 C.F.R. 667.220. Administration costs for county departments of job and family services are generally captured in the shared cost pool. Under the WIA program, some of these costs are more appropriately charged as program costs.

(C) The following WIA Title I functions and activities constitute the costs of administration subject to the administrative cost limit:

(1) The costs of administration are that allocable portion of necessary and reasonable allowable costs of state and local workforce investment boards, direct recipients, including state grant recipients under subtitle B of Title I and recipients of awards under subtitle D of Title I, as well as local grant recipients, local grant subrecipients, local fiscal agents, and one-stop operators that are associated with those specific functions identified in paragraph

(C)(2) of this rule and that are not related to the direct provision of workforce investment services, including services to participants and employers.

(2) The costs of administration are the costs associated with performing the following functions:

(a) Performing the following overall general administrative functions and coordination of those functions under WIA Title I:

(i) Accounting, budgeting, financial and cash management functions;

(ii) Procurement and purchasing functions;

(iii) Property management functions;

(iv) Personnel management functions;

(v) Payroll functions;

(vi) Coordinating the resolution of findings arising from audits, reviews, investigations and incident reports;

(vii) Audit functions;

(viii) General legal services functions;

(ix) Developing systems and procedures, including information systems, required for these administrative functions; and

(b) Performing oversight and monitoring responsibilities related to WIA administrative functions;

(c) Costs of goods and services required for administrative functions of the program, including goods and services such as rental or purchase of equipment, utilities, office supplies, postage, and rental and maintenance of office space;

(d) Travel costs incurred for official business in carrying out administrative activities or the overall management of the WIA system; and

(e) Costs of information systems related to administrative functions (for example, personnel, procurement, purchasing, property management, accounting and payroll systems) including the purchase, systems development and operating costs of such systems.

(3) Other costs are associated according to the following:

(a) Awards to subrecipients or vendors that are solely for the performance of administrative functions are classified as administrative costs.

(b) Personnel and related non-personnel costs of staff who perform both administrative functions specified in paragraph (C)(2) of this rule and programmatic services or activities must be allocated as administrative or program costs to the benefiting cost objectives/categories based on documented distributions of actual time worked or other equitable cost allocation methods.

(c) Specific costs charged to an overhead or indirect cost pool that can be identified directly as a program cost are to be charged as a program cost. Documentation of such charges must be maintained.

(d) Except as provided in paragraph (3)(a), all costs incurred for functions and activities of subrecipients and vendors are program costs.

(e) Costs of the following information systems, including the purchase, 5101:9-31-06 2 systems development, and operating (e.g., data entry) costs are charged to the program category:

(i) Tracking or monitoring of participant and performance information;

(ii) Employment statistics information, including job listing information, job skills information, and demand occupation information;

(iii) Performance and program cost information on eligible providers of training services, youth activities, and appropriate activities;

(iv) Local area performance information; and

(v) Information relating to supportive services and unemployment insurance claims for program participants.

(f) Continuous improvement activities are charged to administration or program category based on the purpose or nature of the activity to be improved. Documentation of such charges must be maintained.

(D) Based on the definition of administration for the WIA as found in paragraphs (A) to

(C)(3)(d) of this rule, appropriate administration costs will be calculated using form JFS 01869. This form and all supporting documentation will be maintained at the local level agency while an adjustment transferring costs from program to administration will be made by local workforce investment areas at the end of each quarter of the SFY. Local areas shall report the adjusting entry using direct program and classification codes on the JFS 01992.

(E) When a local area workforce development investment board has competitively procured WIA services with a county department of job and family services, the county department of job and family services is exempted from calculating the WIA administration adjustment and making the transfer. This is only the case when the county department of job and family services becomes a subrecipient of federal funding through a formal procurement process initiated by the area workforce development investment board through the designated fiscal and administrative agent entity, solely for the actual provision of services. In these instances, county departments of job and family services that enter into agreements with workforce development investment boards as service providers for WIA programs will report all costs as program costs.

Effective: 07/10/2006

Promulgated Under: 111.15

Statutory Authority: 5101.02

Rule Amplifies: 5101.02

(A) The Ohio department of job and family services (ODJFS), office of workforce development (OWD), is issuing the “WorkKeys” assessment allocation beginning March 1, 2007 through June 30, 2007 to all workforce investment areas to provide funding for skills assessment testing for dislocated workers, veterans and unemployment compensation recipients.

(B) “WorkKeys” is a job skills assessment system that measures skills critical to employer and employee success. Eligible clients must be registered in either sharing career opportunities and training information (SCOTI) under the Workforce Investment Act (WIA) of 1998 or labor exchange (LE). However, clients do not have to be enrolled in order to receive “WorkKeys” assessment.

(C) The code of federal domestic assistance (CFDA) number is 17.260 and all activities for the “WorkKeys” assessment allocation must be reported on the JFS 01992 “Workforce Investment Fund Certification Report” (rev. 4/2006) as outlined in rule 5101:9-7-29 of the Administrative Code.

Effective: 05/10/2007

Promulgated Under: 111.15

Statutory Authority: 6301.03

Rule Amplifies: 6301.03

(A) The Ohio department of job and family services (ODJFS) will distribute funds to local workforce investment areas that received awards for the workforce innovation in regional economic development (WIRED) allocation. The initial allocation disbursed to ODJFS from the U.S. department of labor (DOL) is for one hundred thousand dollars and was issued as a small planning grant with an additional five million dollars to be disbursed over the next three years following submission to DOL of the projected budget and implementation plan. The catalog of federal domestic assistance (CFDA) number assigned for this program is 17.261.

(B) This allocation is being made available to foster economic transformation by developing comprehensive regional approaches to education, workforce, and economic development. There is no cost sharing or matching required for eligibility.

(C) Activities such as expenditures, accruals, obligations, program income receipts, program income expenditures, stand-in costs for this allocation must be reported. Expenditures for grant and leveraged funds shall be tracked and reported by the recipient local workforce investment area using the JFS 01992 “Workforce Investment Act (WIA) Funds Certification Sheet”

(rev. 4/2006).

Effective: 10/01/2007

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03

(A) The Ohio department of job and family services (ODJFS) office of workforce development (OWD) is permitted by federal law to reserve up to twenty-five per cent of the total WIA dislocated worker allocation for statewide rapid response to address the needs of dislocated workers in Ohio. ODJFS is therefore reserving up to five million dollars of rapid response funds to provide grants for comprehensive community engagement and regional planning to address pending and future mass layoffs. This funding was issued in state fiscal year (SFY) 2007 and carried forward to SFY 2008. The mass layoff planning grants are designed to help areas or regions develop real time efficient strategies to assist workers in returning to appropriate employment or provide training to obtain new credentials and/or education to succeed in available jobs. The catalog of federal domestic assistance number for this program is 17.260.

(B) ODJFS will award rapid response funds according to the following:

(1) Funds will address strategic planning initiatives and will include the following:

(a) Development of a comprehensive delivery system;

(b) Gathering of resources; and

(c) Development of a plan prior to delivery of one-on-one services.

(2) Activities should include:

(a) Research;

(b) Assessment of impact on local and regional economies;

(c) Feasibility studies;

(d) Labor market information;

(e) Development or strengthening of area-wide involvement of key stakeholders;

(f) Assessment of workers;

(g) Identification of skills gaps; and

(h) Comprehensive collaborative strategy to address the impacted workers regardless of the potential state and federal funds and eligibility for services.

(C) Funds may be distributed through local workforce investment boards (WIB). Once funding has been approved, ODJFS will issue an allocation letter to the WIA fiscal agent or designated fiscal agent.

Effective: 11/01/2007

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03

[This rule designated an internal management rule]

(A) Section 3 of Amended Substitute House Bill 372 of the 127th General Assembly created a federally funded “Incumbent Worker Training Program” to be administered by the Ohio department of development (ODOD) and the Ohio department of job and family services (ODJFS).

(B) The incumbent workers training allocation consists of one hundred per cent federal funds pursuant to the “Workforce Investment Act (WIA) of 1998,” 112 Stat. 936, 29 U.S.C. 2901, as amended. The “Catalog of Federal Domestic Assistance” (CFDA) number is 17.260.

(C) Under guidelines as established by the ODOD, local workforce investment areas (LWIA) may provide funding to approved businesses for the reimbursement of costs associated with providing incumbent worker training services focused on enhancing the ability of Ohio employers to compete effectively and prosper. The ODOD and ODJFS will approve and oversee all training projects.

(D) Once funding has been approved, ODJFS will issue an allocation letter to the LWIA fiscal agent with details of the funding. The LWIA shall be responsible for obtaining trainee information from businesses benefiting from the funding in order to report outcomes of the incumbent worker training programs.

Effective: 04/25/2008

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 6301.03, Section 3 of Am. Sub. H.B. 372, 127th G.A

[This rule designated an internal management rule]

(A) In September 2002, the U.S. department of labor (DOL) and the social security administration (SSA) jointly established a new position, the disability program navigator (DPN), within one-stop centers. The DPN initiative was established to better inform beneficiaries and other persons with disabilities about the work supports available at the one-stop centers. The navigators are responsible for developing new and on-going partnerships to achieve seamless, comprehensive, and integrated access to services, creating systemic change, and expanding the workforce system’s capacity to serve customers with disabilities and employers.

(B) The Ohio department of job and family services (ODJFS) will allocate funds to local workforce investment areas (LWIA) to support the implementation of the “Disability Program Navigator Initiative.”

(C) On June 5, 2007, Ohio was awarded a DPN grant from the employment and training administration (ETA) in the amount of one million two hundred thousand dollars. Ohio’s grant award includes funding for hiring one state lead navigator, four regional navigators, and nine local navigators to be located in designated local workforce investment areas (LWIA).

(D) Nine awards will be made available to eligible LWIA to support one local DPN full-time staff person, navigator access needs, and outreach. Grant funds may not be used to make modifications to existing structures or real property. This funding source is a work incentive grant and the number assigned to this allocation by the catalog of federal domestic assistance (CFDA) is 17.266.

(E) Ohio will operate the demonstration project in full-service, comprehensive one-stop centers in nine LWIA. Seven of the LWIA will provide the navigator services in one-stop centers located in metropolitan areas and two LWIA will operate in one-stops in non-metropolitan areas.

(F) Participating one-stop centers will use funds to enhance programs, services, and activities to persons with disabilities to assist them in obtaining employment and to become economically self-sufficient.

(G) Subgrantees are responsible for submitting quarterly performance and expenditure reports. The specific requirements for reporting will be provided in future allocation letters. The grant period will begin March 1, 2008. Funds must be expended by June 30, 2009.

Effective: 07/03/2009

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03

Prior Effective Dates: 5/1/08

[This rule designated an internal management rule]

(A) The Ohio department of job and family services (ODJFS) will distribute an allocation of workforce development discretionary funds to selected awardees. Funding for this initiative will flow through “Workforce Investment Act” (WIA) fiscal agents. The catalog of federal domestic assistance (CFDA) numbers assigned to this allocation are 17.258, 17.259, and 17.260.

(B) These allocations are made up of the state level discretionary WIA funds. There is a twenty per cent local match requirement. Match requirements may be met by local funds or by in-kind payments (i.e., space, time, or other resources).

(C) Allocations are based on awards granted via the ODJFS competitive request for proposal (RFP) process. Allocations are awarded to the WIA fiscal agents to support subgrant agreements between the WIA area and the selected program operators.

(D) Services to run the youth employment programs will be in accordance with those outlined provisionally in the RFP and as stated in the subgrant agreement between the WIA fiscal agent and the program operator.

(E) Funding for administration is limited to ten per cent.

(1) WIA fiscal agents who are not also operating the WIA youth employment program are limited to a maximum of three per cent.

(2) The WIA youth employment program operator is limited to the balance for a maximum of ten per cent.

(F) All expenditures shall be reported on the JFS 01992 “Workforce Investment Act (WIA) Funds Certification Sheet” as cited in rule 5101:9-7-29 of the Administrative Code.

Effective: 07/17/2008

Promulgated Under: 111.15

Statutory Authority: 5101.02

Rule Amplifies: 5101.02

[This rule designated an internal management rule]

(A) “Local area” means the subrecipient as designated by the governor responsible for administering WIA. Local area is further defined in section 116 of the Workforce Investment Act (WIA) of 1998. For the purposes of this rule, “stand alone areas” are defined as WIA areas that receive only department of labor funding from ODJFS to administer their services. This rule provides guidelines to assist WIA stand alone areas in the tracking of time spent on all direct WIA services and activities for the purpose of appropriately allocating their costs to the benefiting programs.

Combined workforce development agencies allocate staff costs in accordance with rule 5101:9-7-20 of the Administrative Code.

(B) Local areas performing solely WIA administrative functions

If a WIA stand alone area operations are limited to the performance or coordination of functions classified as general administrative functions as listed in this paragraph, the stand alone area shall report all costs associated with the stand alone WIA area as direct charges to WIA administration.

(1) These functions include the following:

(a) Accounting, budgeting, financial and cash management functions.

(b) Procurement and purchasing functions.

(c) Property management functions.

(d) Personnel management functions.

(e) Payroll functions.

(f) Coordinating the resolution of findings arising from audits, reviews, investigations and incident reports.

(g) Audit functions.

(h) General legal services functions.

(i) Developing systems and procedures, including information systems, required for these administrative functions.

(j) Performing oversight and monitoring responsibilities related to WIA administrative functions.

(2) Staff shall complete a certification documenting that they work solely on WIA administration functions.

(a) Certifications shall be completed every six months, in January and July.

(b) Certifications shall be signed by the employee or a supervisor having firsthand knowledge of the work performed by the employee.

(c) The stand alone area shall maintain the certifications at the local level.

(C) Local areas performing both WIA administrative and program functions

A stand alone WIA area that performs any functions not covered in paragraph (B) may develop a cost allocation plan in accordance with 2 C.F.R. part 225 or may track time spent on all activities (including administration) using random moment sampling (RMS). Except as outlined in paragraphs (D) and (E) of this rule, the executive director and all staff in the WIA stand alone area shall participate in RMS. This requirement is an exception to rule 5101:9-7-20 of the Administrative Code, which states administrative positions are generally excluded from the time study.

(1) Stand alone areas allocating costs by RMS shall track time spent on all activities using the workforce random moment sample (WFRMS). The WFRMS is designed to identify activities directly related to program functions benefiting one or more workforce investment programs (e.g., adult, youth, dislocated worker) or the administration of those programs. This information will not be reported to ODJFS but will be used to allocate costs for the stand alone area and documentation will be maintained to support those costs.

(2) Stand alone areas shall follow the established WFRMS process for completing the time study. The stand alone area shall use the results of the RMS to allocate their costs by completing the following steps:

(a) Enter the names of the RMS participants in the RMS roster. The system will generate the appropriate sample.

(b) Staff participating in the RMS will complete observation forms in accordance with rule 5101:9-7-20 of the Administrative Code.

(c) The stand alone areas will enter results in the RMS system.

(d) Stand alone areas are not required to report this information to ODJFS.

(3) Stand alone areas shall use the RMS statistics produced by the RMS system to allocate the costs incurred by the stand alone area.

(D) Exception for special grants

A stand alone area that receives a grant for a specific program activity may exercise the option to direct charge the costs associated with that grant, including costs of a staff member who works solely on that activity. The exception shall be reserved for when a stand alone area’s usual chosen method of allocation would not appropriately allocate costs (or distribute expenditures) in accordance with relative benefits received.

(1) Cost associated with that staff member shall be removed from the other costs of the local area.

(2) Staff shall complete a certification documenting that they work solely on a specific program or special grant or WIA administration functions associated only with a specific program or special grant.

(a) Certifications shall be completed every six months, in January and July, unless the certification can be completed through normal payroll coding and time and attendance certifications associated with normal payroll activities.

(b) Certifications shall be signed by the employee or a supervisor having firsthand knowledge of the work performed by the employee.

(c) Certifications shall be maintained for auditing purposes.

(3) Stand alone areas may allocate the costs associated with the employee working on a special grant directly to the special grant.

(E) Activity report exception

A stand alone local area that performs more than one activity and performs those activities for long periods of time may choose to identify effort spent on multiple activities or programs by the completion of personnel activity reports.

(1) Activity reports are an actual accounting of work performed and not an estimate of work that is expected to be performed.

(a) Staff shall complete activity reports after the fact and must reflect actual activities performed.

(b) Staff shall complete the report for the total time for which they are compensated.

(c) Staff shall prepare the activity reports at least monthly, to coincide with a pay period.

(d) Staff completing the activity report shall sign the completed activity report.

(2) Stand alone local areas shall use the results of the completed activity reports to allocate the costs incurred by the stand alone local area.

(F) Documentation supporting the allocation of costs in a WIA stand alone area shall not be submitted to ODJFS but shall be maintained by the stand alone areas for auditing purposes.

(G) Allocated expenditures shall be submitted to the county finance information system (CFIS) and shall continue to be reported on the “Workforce Investment Act (WIA) Funds Certification Sheet” JFS 01992 (revised 4/2006).

(H) Financial, programmatic, statistical, recipient records, and supporting documents shall be retained by the local area in accordance with 5101:9-9-21 of the Administrative Code.

Effective: 09/15/2009

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03

[This rule designated an internal management rule]

(A) The one-stop delivery system, as established by the Workforce Investment Act of 1998 (WIA), is a collaborative effort of public service agencies, non-profit organizations and private entities to make a variety of services available to eligible job seekers and employers.

(B) Services provided through the one-stop delivery system are coordinated and made available through a memorandum of understanding (MOU) between the local area workforce investment board and its one-stop partners including the Ohio department of job and family services (ODJFS).

(C) The chief local elected officials designate a fiscal agent who handles fiscal responsibilities related to the MOU for all of the local one-stop partners. The local area enters into one MOU with all one-stop required partners (including ODJFS) and the ODJFS share of all one-stop delivery system costs within the local area is determined during the annual MOU negotiations.

(1) ODJFS will issue an allocation to the local area for the amount agreed upon in the MOU for the ODJFS negotiated cost sharing amount.

(2) This allocation is issued for the state fiscal year (SFY), July first through June thirtieth. The liquidation period for reported expenses ends September thirtieth of the subsequent year.

(3) This allocation consists of multiple funding sources. ODJFS will notify the local area of the catalog of federal domestic assistance (CFDA) number for individual grant awards and will enter the budget for each grant award into the county finance information system.

(4) The local area shall submit draw requests in accordance with rule 5101:9-7-04 of the Administrative Code for reimbursement of the ODJFS share of costs of the one-stop delivery system. The local area distributes the funds to the individual one stop delivery systems.

(D) One-stop partners’ system costs are reported through the local area on the JFS 01992 “WIA Fund Certification Sheet” (rev. 4/06).

(E) The definitions, requirements and responsibilities contained in rule 5101:9-6-50 of the Administrative Code are applicable to this rule.

Effective: 07/04/2009

Promulgated Under: 111.15

Statutory Authority: 6301.03

Rule Amplifies: 6301.03

[This rule designated an internal management rule]

(A) Effective February 17, 2009, ARRA was passed and funding made available to create and save jobs. As part of this stimulus package, ARRA provides funding for WIA services to adults, dislocated workers, and youth who have been adversely affected by the changes occurring in the workforce as a result of the current economy.

(B) Local workforce investment areas’ use of stimulus funds allocated by ARRA will be used to supplement program year (PY) 2008 and PY 2009 allotments for WIA Title I adult, dislocated worker and youth programs, and employment service (ES) activities, as required by the Wagner-Peyser Act (as amended) and to provide reemployment service (RES) funding.

(1) The period of availability for the ARRA allocation to local areas is February 17, 2009 through June 30, 2010.

(2) The catalog of federal domestic assistance (CFDA) numbers assigned to these activity programs is as follows:

(a) Adult – CFDA number 17.258.

(b) Dislocated – CFDA number 17.260.

(c) Youth – CFDA number 17.259.

(C) In accordance with the intent of ARRA, allocated funds must be spent expeditiously and effectively, with full transparency and accountability. Stimulus funds will provide an opportunity for the workforce system to accelerate its transformational efforts and demonstrate its full capacity to innovate and implement effective one-stop service delivery strategies.

(D) The allocation methodology is in accordance with the provisions outlined in rule 5101:9-31-02 of the Ohio Administrative Code.

(E) Allocated funds provided must be expended in accordance with all applicable federal statutes, regulations, policies, and guidance, including those of the ARRA of 2009 and the Workforce Investment Act of 1998.

(1) Allocated ARRA funds must be spent in accordance with the approved WIA state plan, including approved local area plan amendments.

(2) Allocated ARRA funding shall be spent concurrently with other WIA and Wagner-Peyser funding to improve the effectiveness of the one-stop system and is not intended to replace existing WIA Title I formula funds, or state/local funding currently dedicated to workforce development and summer youth activities.

(3) In accordance with ARRA, local areas must have a 2009 summer program or work experience program for youth.

(F) ODJFS established random moment sampling (RMS) program codes for each program funding stream. Local areas and workforce development agencies shall use appropriate ARRA program codes with current activity codes when a worker is performing an activity related to ARRA funding.

(G) WIA procurement policies shall be administered and adhered to in accordance with rule 5101:9-4-07 of the Administrative Code.

(H) ARRA grant funding for adult and for dislocated worker activities.

(1) ARRA adult grants and ARRA dislocated worker grants are available for employment and training services to adults and dislocated workers in accordance with WIA formula subgrant requirements.

(2) Local areas may use up to ten per cent of the adult and dislocated worker ARRA funds for local administration.

(3) Local areas may transfer thirty per cent of their ARRA funding between the adult and dislocated worker programs.

(a) Local areas may code a portion equal to or less than thirty per cent of the allocated WIA adult grant for expenditures that are allowable under the WIA dislocated worker grant.

(b) Local areas may code a portion equal to or less than thirty per cent of the allocated WIA dislocated worker grant for expenditures that are allowable under the WIA adult grant.

(c) Local areas electing to charge a percentage of the ARRA adult grant for dislocated worker activities or charge a percentage of the dislocated worker grant for adult activities shall use the county finance information system (CFIS) transfer coding established for this purpose.

(4) ODJFS will issue program policy that details additional program requirements for the use of ARRA adult and dislocated worker funds.

(I) ARRA grant funding for youth activities.

(1) ARRA youth grants are available for any youth activities allowable under WIA. In addition, ARRA has expanded the age eligibility to include youth ages twenty-two through twenty-four.

(2) Local areas must utilize a minimum of thirty per cent of ARRA funding to service out-of school youth.

(3) The summer youth employment opportunity period is defined as May first through September thirtieth and is a required program under ARRA.

(4) Local areas may use up to ten per cent of the youth ARRA funds for local administration.

(5) ODJFS will issue program policy that details additional program requirements for the use of ARRA youth funds.

(J) Continuous monitoring will be conducted by ODJFS to ensure all financial and program provision are being met. The WIA local area shall maintain the completed documentation in accordance with the records retention requirements in rule 5101:9-9-21 of the Administrative Code. This documentation may be subject to inspection, monitoring, and audit by ODJFS and the Ohio auditor of state (AOS).

(K) The definitions, requirements, and responsibilities contained in rule 5101:9-6-50 of the Administrative Code are applicable to this allocation.

Effective: 09/15/2009

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03

[This rule designated an internal management rule]

(A) The Ohio department of job and family services (ODJFS) is allocating ten per cent discretionary funds for the recovery conservation corps (RCC) in connection with programs and funding linked to the American Recovery and Reinvestment Act (ARRA) of 2009. The catalog of federal domestic assistance (CFDA) has recorded this funding under 17.260 (dislocated workers), 17.259 (youth), and 17.258 (adult).

(B) Local areas may submit requests for funding, along with a description of eligible projects to ODJFS. ODJFS will allocate these funds to the WIA local areas upon ODJFS approval of the project.

(C) The reporting and liquidation period for these funds is May 1, 2009 through September 30, 2010. Costs must be incurred prior to June 30, 2010 and must be liquidated by September 30, 2010.

(D) Allowable expenditures include, but are not limited to, the following:

(1) Crew leader wages;

(2) Transportation for youth and crew; and

(3) Crew leaders’ tools.

(E) Non-allowable expenses include, but are not limited to, wages of non-crew leader RCC work experience participants.

(F) The local workforce investment board (WIB) is responsible for ensuring oversight of the program. The administrative entity should periodically monitor the participating worksite or a host site to ensure goals are being met and adhered to and are in accordance with WIA laws and regulations.

(G) The WIA local area shall maintain the completed documentation in accordance with the records retention requirements in rule 5101:9-9-21 of the Administrative Code. This documentation may be subject to inspection, monitoring, and or audit by the ODJFS office of fiscal and monitoring services (OFMS) and/or the Ohio auditor of state (AOS).

Effective: 08/15/2009

Promulgated Under: 111.15

Statutory Authority: 5101.02, 6301.03

Rule Amplifies: 5101.02, 6301.03