Policy Chapters and Sections

Chief Elected Official's Financial Liability

Chapter: 1 Section: 3.3
Effective Date: 12/15/2017
Expiration Date: Continuing
Published Date: 6/10/2021 2:24:43 PM
Status: Current
Version: 2

Tags: CEO Agreement, Governance

  1. The CEO(s) within each LWIA is financially responsible for the use of WIOA funds within that LWIA, whether the CEO serves as the grant recipient or another entity is designated to serve in that capacity. 
    1. In the case of multiple CEOs, all CEOs in the LWIA are jointly and severally liable for any improper expenditures.
    2. This means that the political jurisdiction of the CEO is liable for any misuse of WIOA grant funds allocated to the local area and must repay the State using non-federal funds for any improper or unallowable expenditures.
  2. When an alternate entity is designated as the grant subrecipient by the CEO(s), a separate agreement between the CEO(s) and the grant subrecipient, as well as a CEO Acknowledgment and Designation Form, are required.
    1. The CEO Acknowledgment and Designation Form will make explicit the local grant subrecipient arrangement and acknowledge the CEO’s individual or collective (in the case of multiple CEOs) financial liability for WIOA funds. 
    2. The CEO, or all CEOs in multiple CEO areas, is required to sign this form and submit it to the Department. 
    3. Under this designation arrangement, funds flow to the entity selected by the CEO(s) to function as the grant subrecipient.
    4. The designated entity receiving funds from the Department must have an authorized representative from that entity execute the grant agreements and related budget and disclosure forms.
  3. When an alternate entity is designated as fiscal agent by the CEO(s), there must be a written agreement between the fiscal agent and CEO(s) to define the roles and responsibilities of the fiscal agent.
    1. The CEO(s) must also include the designated fiscal agent’s information on the CEO Acknowledgment and Designation Form. 
    2. The designated fiscal agent must meet the minimum qualifications defined by the GATA Framework for a Grantee Fiscal Agent Function (the GATA Framework) (see website link on the References tab). 
    3. The CEO-Fiscal Agent Agreement must follow the GATA Framework and must include one or more of the following fiscal agent functions specified in 20 CFR 679.420: 
      1. Receive funds from the grant recipient or grant subrecipient (if a separate entity is designated as the grant subrecipient);
      2. Ensure sustained fiscal integrity and accountability for expenditures of funds in accordance with OMB circulars, WIOA, and corresponding Federal Regulations and State policies;
      3. Respond to audit financial findings;
      4. Maintain proper accounting records and adequate documentation;
      5. Prepare financial reports; and
      6. Provide technical assistance to grant recipients or subrecipients regarding fiscal issues. 
      7. At the direction of the local workforce innovation board, the fiscal agent may also:
        1. Procure contracts or obtain written agreements;
        2. Conduct financial monitoring of service providers; and
        3. Ensure independent audit of all employment and training programs. 
  4. A local organization/entity may be selected or otherwise designated to perform more than one of the following functions:  fiscal agent, local workforce innovation board staff, one-stop operator, direct provider of career services or training services. 
  5. If a local organization/entity is performing more than one of these functions, there must be a written agreement with the local workforce innovation board and the CEO(s) to clarify how the organization will carry out its responsibilities while demonstrating compliance with WIOA and corresponding regulations, relevant OMB Circulars, and the State’s conflict of interest policy.  A separate CEO-Fiscal Agent Agreement is not required. 
  6. In instances in which the CEO is the grant recipient, the CEO is the party authorized to sign grant agreements and related budget and disclosure forms with the Department under WIOA. 
    1. The CEO may delegate signature authority to another person(s) within the CEO’s organization to execute grant agreements and related budget and disclosure forms. 
    2. The CEO may designate other agents within or outside the CEO’s organization to sign other grant-related documents, such as periodic reports. 
    3. The delegation of signature authority by chief elected officials is accomplished by completing the attached CEO Acknowledgment and Designation Form. 
    4. In areas comprised of multiple CEOs, each CEO is required to sign the attached form.
    5. All individuals with either type of designated signature authority must also be listed on the grant agreements as an authorized designee.
  7. In order to establish a designation arrangement regarding the local grant subrecipient under WIOA, delegation of signature authority, and the acknowledgment of financial responsibility, CEOs are required to submit the attached CEO Acknowledgment and Designation Form as well as the CEO(s)/grant subrecipient agreement, if applicable.
    1. In areas comprised of multiple CEOs, each CEO is required to sign this form, which will be included as an addendum to the comprehensive four (4)-year local plan.

WIOA Section 107 - Local workforce development boards

WIOA Final Rules, Part 679, Subpart C - Local workforce development boards

WIOA Section108 - Local plan

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

GATA Framework Website

Office of Management and Budget (OMB) Circulars

USDOL ETA Advisories (TEGLs and TENs)

USDOL Workforce Innovation and Opportunity Act Regulations and Information

U.S. Government Publishing Office (Federal Registers)

No Attachments Found
CEO Acknowledgment and Designation Form 7-6-2020
No Notices Found