Policy Chapters and Sections

Grantee Eligibility for Incentive Funds

Chapter: 8 Section: 3.3.5
Effective Date: 4/13/2017
Expiration Date: Continuing
Published Date: 8/17/2021 4:35:27 PM
Status: Current
Version: 5

Tags: Reallocation, Allocation, Obligations, Grants, Administration, Fiscal

  1. If a grantee reports obligations in excess of its actual obligations to avoid reallocation, the grantee will be ineligible to receive incentive funds for one (1) year.
  2. All the obligations reported to the Department will be monitored for reallocation purposes.
  3. The Uniform Guidance requires accurate, current and complete disclosure of financial results of the grant.
  4. Following are examples of the utilization of this reporting requirement:

    Example #1:

    A local area’s funding stream (program funds only) has an obligation level (and expenditures) of greater than eighty percent (80%).  In this situation, the local area would qualify to receive reallocated funds.

    Example #2:

    A local area’s funding stream (program funds only) has an obligation level of greater than eighty percent (80%). However, its expenditure rate is less than eighty percent (80%).  In this situation, the local area would qualify to receive reallocated funds since reallocation is based on obligation levels.  However, if the monitoring process finds that the local area, in fact, did not have an obligation level of at least eighty percent (80%), the local area would be subject to retroactive de-obligation.  The local area would have to forfeit any funds it had received earlier in the reallocation process, plus it would lose funds in that particular funding stream in the amount that it should have originally lost in the reallocation process.  Additionally, this local area would be ineligible to receive incentive funds based on performance for one (1) year.

    Example #3:

    A local area’s funding stream (program funds only) has an obligation level (and expenditures) less than eighty percent (80%).  In this situation, the local area would not qualify to receive reallocated funds.  The amount of program funds exceeding twenty percent (20%), which is the maximum carry-forward, would be subject to de-obligation.

WIOA Final Rules, Part 683, Subpart A - Funding and closeout

WIOA Final Rules, Part 683, Subpart E - Pay-for-performance contract strategies

Regional and Local Planning Requirements

USDOL Training and Employment Guidance Letter (TEGL) No. 28-10, Federal Financial Management and Reporting Definitions (May 27, 2011)

2 CFR 2900 Uniform Guidance UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

2 CFR 200 Uniform Guidance UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

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