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Ohio Laws and Rules
(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