Policy Chapters and Sections

Modification of WIOA Formula Grants

Chapter: 6 Section: 1.4
Effective Date: 6/13/2017
Expiration Date: Continuing
Published Date: 6/22/2022 1:37:46 PM
Status: Current
Version: 10

Tags: Allocation, Major Modification

  1. There is a need for a grant modification if any of the following conditions occur:
    1. There are changes to the grantee’s available funding such as additional allocations, transfers between the adult and dislocated worker funding streams, reallocations, rescissions, or any other change such as budget line item adjustment; and/or
    2. When the LWIB needs to alter planned registrant numbers based on changes in service strategy or other factors.
    3. Reallocation of Funds
      1. Reallocation of funds applies to the WIOA Title 1B program:  Adult, Dislocated Worker, and Youth funding streams.
      2. The amount recaptured from each local area, if any, will be based on the amount by which the prior program year’s un-obligated balance of allocated funds exceeds twenty percent (20%) of that year’s allocation for the program, less any amount reserved (up to ten percent (10%)) for costs of administration.
      3. Un-obligated balances on allocations will include adjustments for any allowable transfer between funding streams. A notice will list the reallocation amounts by each funding stream and include instructions to submit a modification reflecting the actual reallocated/de-obligated amounts.
      4. Any LWIB will be eligible to receive reallocated funds in a funding stream that exceeds the minimum obligation level for that particular program. 
    4. If through the federal appropriation process there is a rescission of funds, there will be a notice issued stating the reduction and any instructions necessary for the modification.
    5. Budgeted Line-Item Adjustment
      1. The expenditure reporting screens in the Department’s accounting system include the budget and the sub “roll-up” line items as part of the monthly expenditure reporting requirements. 
      2. A LWIB may approve the grantee adjusting the budget line items that “roll-up” within that line without a formal budget modification so long as the total for the category is not exceeded. 
        1. Example:  Grantees may alter the Adult budget for any of the following sub “roll-up” line items so long as the total amount for budget line item of Adult Direct Training does not change:  Occupational Skills Training ITAs; Occupational Skills Training – Other; Remedial/Pre-Vocational Training; Pay-for-Performance Contracts; and Supportive Services.
    6. Registrants
      1. Should LWIBs need to adjust the planned registrant numbers, they are able to do so without a formal grant modification.
        1. The same modification procedures apply when adjusting planned registration numbers.
      2. Significant changes to the planned service strategies may require a local plan modification. 
    7. Each LWIB must use the instructions provided in the annual funding notice to revise planned budget and/or registrant numbers.