5101:9-31-01 General requirements for use and expenditures of Workforce Investment Act (WIA) funds by local areas.

[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